The “2022 saving account”, or how to earn ~20% on stable coin
2021 has been a great year for crypto currencies, DeFi and new ways of earning money from passive income and speculation (mostly on dogs though …).
In 2022, we will look for a strategy to take those profits in a safe place, and continue to passively earn more (digital) money. To do so, we will use Terra Protocol, Terra station (wallet) and Anchor protocol (a saving protocol deployed on Terra chain).
TL;DR, Anchor is a borrowing / lending application that proposes high interest rates on Terra stable coin deposits (current APY is 19.45%). You do not need to jump in crypto currency to benefits from this: it’s a better saving account than your bank can propose.
In this tutorial, we are going to:
- Install Terra Station on our smartphone and create a wallet
- Buy UST on Binance (you can also buy Luna if you prefer)
- Transfer UST from Binance to Terra station
- Deposit UST on Anchor protocol
Note that the main part is to have your funds on Terra station, one way or another. Alternate solution might be to:
- Bridge assets from one chan to another (using https://bridge.terra.money/ (works for Ethereum, Harmony, BSC) or https://wormholebridge.com/#/ (works for Solana, Polygon))
- Sell / Swap Luna for UST
- Or any other way to get UST on Terra station (feel free to ask questions with your specific use-case if needed)
Terra station is the official wallet for the Terra ecosystem. With it, you can create a wallet, swap coins, stake your Luna, and so much more.
Once installed, click on new wallet to create a new wallet, with a name and a password. Then, you will be able to write down on a secure place your 24 words seed phrase. DO NOT LOOSE THIS PHRASE and STORE IT PRECIOUSLY. Confirm your passphrase and that’s it!
UST on Binance
Binance is my goto when I need a CEX (centralized Exchange). You can find most of the coins on it, and the withdrawal is painless and inexpensive (1 UST only).
Create an account on Binance (if it’s not already done) using this link: https://accounts.binance.com/en/register?ref=RUERPAKG
After creating your new account, go through the eKYC procedure: It’s fast (should be done within few hours) and allows you to fully use the platform. Lastly, secure your account with SMS or Google Authenticator feature for good measure.
Use your credit card, or sell some crypto to get your hands on UST.
Once you have your UST on Binance, click on withdraw, enter your withdrawal address (your newly created Terra station address should start with “terra”), select the Terra network, enter the amount and, after providing the security elements, click on Withdraw and wait (in my case, it took ~2min to arrive on my wallet).
Note: You will probably have a popup saying that “the Terra network support MEMO” but you don’t need one to transfer your UST to your Terra Station wallet, so don’t worry about it. Also, even if the network’s status is “congested” it won’t affect your transactions that should arrive in ~2–5 minutes.
Deposit on Anchor
Finally, head over to https://app.anchorprotocol.com/ and click on the “earn” tab. Click on Connect wallet on the right side, and select the “WalletConnect” option.
A QR code will be displayed on screen, so grab your phone, open the Terra station application, click on the “scan” icon on the top right of your wallet, and scan it to connect your Terra station with the Anchor app.
Now, click on “deposit”, enter the amount of UST, and click on “proceed”.
Note: you should keep some UST in your wallet as it is used for transactions fees.
You will receive a popup on your Terra station application asking you to sign & validate the transaction. And … Voilà! You now have a decent saving strategy!
I hope you liked this guide / tutorial and it was useful for you. I have been using Anchor as part of my exit / take profits strategy, and it has delivered up to my expectation with those yummy 20% APY.
Of course, i’m not a financial advisor and you should always make ton of research before investing your capital in Crypto.
Feel free to reach out to me if you have any question or comments.