Buy Alert - Stablecoin Lending
Added 2022-01-22 00:08:50 +0000 UTCAdding a bit more passive income to the portfolio through lending. I have begun lending out UST through Anchor Protocol.
My thought process:
I have always been a fan of rooting a portfolio in assets that earn me money no matter where the market is and this most recent downturn was the kick I needed to really look into UST lending.
I have lent out USDT for a while now on Kucoin and have averaged around 15% APY (it fluctuates a lot from day to day though)
UST lending through Anchor Protocol is 19.64% APY
The ultimate goal is to have some stablecoin lending diversification across a few protocols to help limit downside risk.
As of today, I am lending $41,000 UST on anchor with plans to increase that to $100K.
Steps I took:
1. Create Terra Station Wallet https://chrome.google.com/webstore/detail/terra-station-wallet/aiifbnbfobpmeekipheeijimdpnlpgpp
2. Head over to Kucoin https://www.kucoin.com/ucenter/signup?rcode=rJMS45S
3. Swap USDT for UST on the spot trade tab
4. Copy wallet address from Terra station
5. Paste into Kucoin
6. Choose the Luna network
7. Add a memo
8. Send a test transaction to make sure funds transfer properly. I like to do this since I’m neurotic lol.
9. Send over remaining funds
10. Head over to Anchor Protocol https://app.anchorprotocol.com/earn
11. Deposit UST
12. Confirm
Note:
There's a few ways to fund your Terra Station Wallet. If you don't have money on Kucoin you can use Coinbase as an on ramp:
1. Buy BTC on Coinbase https://coinbase-consumer.sjv.io/doDAV2
2. Send BTC to Kucoin
3. Move BTC to trading account on Kucoin
4. Swap BTC for UST on Kucoin
5. Move UST to main account on Kucoin
6. Send UST to Terra Station wallet
Warning:
There is slightly more risk to lending out money on a defi protocol vs in a centralized exchange
1. In defi you have an increased risk of hacks and bugs
2. In defi you have the human error risk being if lose you wallet seed phrase you are out of luck.
So be careful! Anchor is a huge protocol with billions of dollars locked but there's always some risk.
If all of this sounds a bit overwhelming to you.. don't worry! You're not alone. A more simple way to lend out stablecoins (I still do this to this day) is simply to lend USDT on Kucoin. Here is a tutorial: https://youtu.be/4Dc-0dh_dOo
Enjoy that juicy passive income!
