HOW TO GET 20%+ APY USING TERRA
This is an in-depth guide on how to use the Terra Ecosystem to get massive profit
WHAT IS TERRA?
WHAT IS US TETHER (UST)
The Terra Ecosystem is a system designed around the UST coin. The goal of UST is to create a stable coin that is algorithmically adjusted to be equal to the US Dollar. This makes transactions on the Terra ecosystem possible and removes risk of the coin losing value.
HOW TO GET UST
UST is a coin that is unavailable on many sites. Our goal here is to buy UST from KuCoin, since it has low fees and is one of the few crypto exchanges that uses the Terra network.
WHY CAN'T I JUST BUY USDT ON COINBASE?
You may notice on crypto exchanges like Coinbase, there is a USDT coin that is pegged to the US Dollar. While this is equal to UST, the only difference is the network it runs through. USDT runs through Ethereum and UST runs through Terra. We prefer UST to use in the Terra Ecosystem and because transaction fees are much lower with UST.
CHEAPEST WAY TO BUY UST ON KUCOIN
While you can buy UST directly on KuCoin, I prefer to use CoinBase Pro and transfer to KuCoin for lower fees. The first step is to make a Coinbase Pro account (if you haven't already), since Coinbase Pro has lower fees than Coinbase. If you have money in Coinbase, you can select deposit to move it to Coinbase Pro for free.
TRANSFERRING XLM TO KUCOIN
Now we are going to withdraw XLM to KuCoin. This is where we have to enter the address and memo from KuCoin to get it there. Notice how there is no network fee to transfer it
TRANSFERRING OUR XLM TO THE TRADING ACCOUNT
In order for us to trade on KuCoin, we have to transfer our assets from our main account (where we can deposit/withdraw) to our Trading Account where we can buy UST
TRADING XLM FOR USDT
Now we are going to trade our XLM for USDT. Make sure you select the same one I have here to convert it properly.
SELLING OUR XLM FOR USDT
First make sure we select Market (instead of limit) so we can immediately sell. Then we select the 100% button to choose all of our XLM and Sell XLM. This will convert all of our XLM to USDT.
TRADING USDT FOR UST
We are now going to do the same thing as before, but we are selecting USDT/UST and selling our USDT for UST. This is the same currency but going through the Terra network instead of Ethereum.
TRANSFERRING UST FROM OUR TRADING ACCOUNT TO OUR MAIN ACCOUNT
We are now going back to the main menu to transfer our UST from our Trading Account to our Main Account. This is so we can withdraw the UST to use it in the Terra Ecosystem.
WITHDRAWING OUR UST
Now we can go tot he Withdraw section. Make sure to select the UST we just got. The network has to be on Terra, click max to transfer all of our UST, and we will get the Wallet for the Wallet Address section next.
TERRA STATION
Terra Station is a Chrome extension that can hold UST for any Terra website to use. We will have to make an account (make sure to keep the key secure) and then we can copy the wallet address (from the copy button at the top right) and paste it in our withdraw in KuCoin to finish sending the UST to this wallet
ANCHOR PROTOCOL
We now have some options with how to use our UST. The safest option would be to put our money into Anchor Protocol. This is a savings page that can earn consistently ~20% APY with your money. It is normal for the APY to hover around 19.6% but it should stay around 20%. All you have to do is connect your wallet to Anchor and deposit your UST into the EARN section for this.
HOW ANCHOR USES OUR UST
Keep in mind your money is based around US Tether, so your money is stable and should theoretically never drop even if the crypto market goes down. Anchor is decentralized, so you can't even make an account through them and all that is really happening is that your UST is being converted to aUST, which is set to gain value over time to earn you the interest. Your money is still being held in your Terra Wallet though.
ANOTHER OPTION FOR BIGGER GAINS
When we have our UST we can use other websites to farm rewards for us. My favorite is Spectrum Protocol. With Spectrum Protocol, you can connect your Terra Wallet (like we did with Anchor), and deposit your UST to auto-compound your money for big gains. The values shown here will most likely change over time.
SPECTRUM PROTOCOL
There are many good options here to choose from. I would select whatever you feel most comfortable with. The way this works is that it uses the Mirror Protocol to track stocks like Amazon or Tesla that are valued the same as those stocks are on the stock market and gives you rewards for depositing into them. You can choose whichever farm you feel most comfortable with: I think they are all great options.
SPECTRUM EXPLAINED
You will have to buy half of the mirrored token that you want to hold and half kept as UST for collateral. Because of this, make sure to only buy half of the amount you want to use, since UST will account for the other half. Click on the Buy link to go to Mirror Protocol to purchase the mirrored token.
BUYING MIRRORED TOKENS
Now we can buy the mirrored tokens we need. As an example, if I wanted $100 worth of mAMZN, I would buy $50 worth of it here since the other $50 of UST is used as collateral in Spectrum. WARNING: Make sure to keep 5 UST or so in your Terra Wallet to cover the small fees if you need to withdraw some money.
DEPOSITING INTO SPECTRUM
Now we can deposit the mirrored token into Spectrum, which would automatically be paired with the UST half of it. In this example, .1 mAMZN is worth 348.55 UST. Make sure to select Auto Compound for better profits and it shows you where the Total APY is coming from. 28% from Mirror is turned into 32% when auto compounded plus the SPEC Reward, which is the spectrum token that can change in value for the other 35.32%
THE END
If you have any questions, please send me an email. I spent a lot of time making this since I couldn't find in-depth guides online for this so if you could just use my referral link for Coinbase I would greatly appreciate it. Thanks for reading!
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