Have you heard about Anchor Protocol? Have you heard about the fact that you can get an interest of almost 20% by depositing your UST stable coin to the platform? Isn’t that just awesome? Anchor Protocol was first launched on the Terra blockchain, but in March 2022, it was also made available on the Avalanche blockchain. Would you like to earn interest with your UST tokens on Anchor Protocol on the Avalanche blockchain?
It isn’t very complicated to use Anchor Protocol on Avalanche, at least not if you are used to transacting using MetaMask or some other crypto wallet with support for Wallet Connect. If you do not have a crypto wallet like MetaMask yourself, then you have to get one before you can continue with the fun. You can read more about how you can get a crypto wallet (a hardware wallet is recommended combined with using MetaMask) in the following article.
Do you have a wallet ready with some AVAX on set up to communicate with the Avalanche blockchain?
If your answer is yes to those questions, you are almost entirely ready. In order to deposit UST to the Anchor Protocol on Avalanche, head over to traderjoexyz.com and swap some AVAX for UST.
Do not forget to leave some AVAX in your wallet as that is needed to pay for further transactions on the blockchain. But, buy as much UST as you want to deposit to the Anchor Protocol and when that is done and you are ready, visit https://app.anchorprotocol.com.
Deposit your UST to the protocol
As you visit the application of Anchor Protocol, make sure to connect the website/application to your wallet. You will have to confirm the connection with your wallet as well, and when this is done, the application will see your current UST balance.
Visit the EARN page on the Anchor Protocol website and you can now deposit your UST to the protocol (you will most likely have to approve the contract first before you are allowed to deposit the tokens).
Above you can see that I have deposited 5.9 UST to the platform which is expected to give me an annual interest of 1.15 UST, which is an interest of 19.51%.
You are able to withdraw your deposits at any time, and this is a perfect way to generate a nice and passive income with your stable coins on the Avalanche blockchain. This is the basic function of the Anchor Protocol, but there are other functions as well available on the website and you can also use your funds as collateral to borrow from the protocol.
Do you like Anchor Protocol? Are you happy that it finally came to Avalanche? We are! But, if you want to read about another protocol that has a very cool concept and that is very similar to Curve Finance on Ethereum, then you should read more about Platypus Finance as well, a platform that could be considered one of the main competitors of Anchor Protocol (even though the platforms have different functions and use-cases).
We hope these instructions have helped you. Should you have any further comments or questions, please use the comment field below and let us hear from you!
