Anchor Protocol is a Terra blockchain-based savings protocol that provides users with low-volatility yields of up to 20%. This article will explain how to deposit UST into this protocol in order to earn interest.
How to ‘stake’ UST on Anchor Protocol
Here are 4 steps to ‘stake’ your UST tokens on the Anchor Protocol:
- Send UST tokens to your Terra Station wallet.
- Connect your Terra Station wallet to Anchor Protocol.
- Go to the ‘Earn’ tab and select ‘Deposit’.
- Enter the amount of UST tokens that you want to deposit and confirm the transaction.
1. Send UST tokens to your Terra Station wallet
How to install Terra Station wallet
Anchor Protocol is a component of the Terra ecosystem, and it works in conjunction with the Terra Station wallet. The first step is to download and install the Terra Station wallet from one of the following places:
The Terra Station wallet will be used to store your UST tokens.
Following the installation of the extension/app, you must either create a new Terra wallet or import an existing one from a seed phrase. When creating your crypto wallet, don’t forget to create a backup (write down and save the seed phrase) so that you can easily restore your wallet if you forget your password.
How to get UST tokens
The first step is to purchase UST tokens on a platform that supports LUNA network withdrawals. UST tokens are traded on centralized (CEX) and decentralized (DEX) cryptocurrency exchanges. The CoinMarketCap website has a list of all available exchanges that support UST.
The table below represents five platforms to consider when buying UST tokens. For a complete list of where to buy UST tokens, click here.
|Platform||Trading Fee||UST Withdrawal Fee|
|Binance||Up to 0.1%||1 UST|
|Bitfinex||Up to 0.2%||0 UST|
|FTX||Up to 0.07%||0 UST|
|Gate.io||Up to 0.2%||5 UST|
|Huobi||Up to 0.2%||0 UST|
|Kraken||Up to 0.26%||1 UST|
|KuCoin||Up to 0.1%||2 UST|
How to transfer UST tokens to the Terra Station wallet
After purchasing UST tokens, you must transfer them from the crypto exchange to your Terra Station wallet. To do this, you must find your Terra Station wallet address (from the extension/app that we installed above) and copy it.
NOTE: If asked for a MEMO address when transferring UST from an exchange, Terra Station does not require one. You can leave the MEMO field blank.
Once you copy your wallet address, you can go back to the exchange where you bought your tokens and transfer the UST tokens into your Terra Station wallet using the copied address. Make sure to send them using the Terra/LUNA network.
- For Bitfinex and Huobi, you are only able to send UST tokens using the native Terra/LUNA network. (This is good!)
- For the other 4 platforms listed in the chart above (Binance, FTX, Gate.io and KuCoin), they allow you to withdraw UST tokens using different networks. You must send the UST tokens via the Terra/LUNA network to your Terra Station wallet. If you send UST using any other networks, your UST may be lost forever.
- Some platforms such as Gemini and Coinbase only support the ERC20 versions of UST. As such, you will need to perform 2 transfers:
- Transfer the ERC20 version of UST tokens to an exchange that can handle both the ERC20 and Terra/LUNA versions of UST (Examples would be Binance and Kucoin).
- Send the UST tokens from that exchange to your Terra Station wallet using the Terra/LUNA network.
You should receive the UST tokens in your Terra Station wallet once the withdrawal from the exchange has been processed.
2. Connect your Terra Station wallet to Anchor Protocol
The next step is to link your Terra Station wallet to Anchor Protocol. To do so, click the ‘Connect Wallet’ button in the upper right corner of the Anchor dashboard.
If you installed the Google Chrome/Brave Extension click ‘Terra Station Wallet’ as the option to connect your wallet. The Terra Station extension will then launch and ask you to sign in. After that, your wallet will connect to the Anchor protocol.
If you installed the iOS App or Android App, choose ‘Wallet Connect’ as the option to connect your wallet. A QR code will be shown. You must now open the Terra Station app and tap the QR code button in the upper right corner. Scan the code with your app to connect your wallet to Anchor Protocol.
3. Go to the ‘Earn’ tab and select ‘Deposit’
After connecting your Terra Station wallet, navigate to the ‘Earn‘ tab on Anchor Protocol.
On the Earn Dashboard, select ‘Deposit.’ This will allow you to deposit your UST tokens into Anchor Protocol.
4. Enter the amount of UST tokens that you want to deposit and confirm the transaction.
The final step is to decide how many UST tokens you want to deposit into Anchor Protocol.
Because each transaction has a Tx fee, you should keep some UST tokens in your wallet to cover the fee costs. For example, if you have 500 tokens in your wallet, deposit 495 to ensure that you have enough to cover the fees.
After entering an amount, select ‘Proceed’. The UST will be deposited into Anchor Protocol once you have confirmed the transaction on your Terra Station wallet. When the transaction is completed, your UST tokens will now be earning interest on Anchor Protocol.