In case you missed the announcement, FTX has finally started supporting Terra’s UST, and now allows users to withdraw UST straight into your Terra Station wallet.
You no longer have to jump through hoops to get your UST into Terra Station wallet.
This begs the question — what can you do with UST?
Anchor Protocol can be said to be the bedrock of the Terra ecosystem. Launched in March 2021, it made waves in the crypto scene as it offered a staggering 19.5% interest yield for stablecoin deposits.
The idea behind Anchor was to boost demand for UST. There is a money market feature behind Anchor Protocol where the UST deposit is pooled together and loaned out to generate interest for the depositors.
In February 2022, the interest generated from the protocol was less than what is necessary to be paid out as the amount of deposit continue to skyrocket while the amount of lender dipped.
Anchor Protocol then had to dig deep into its reserve and pay the depositors to maintain the 19.5% interest rate.
In February 2022, Do Kwon, the co-founder and CEO of Terraform Labs injected a total of US$450 million into the Anchor Yield Reserves.
This monetary injection helped to stabilise the protocol and revive confidence within the community. This top-up also helped Anchor Protocol to buy time and improve to become a self-sustainable one.
Step-by-step guide to withdrawing UST
Before we start, here is a short guide on how to on-ramp into FTX: Here’s How I Carried Out An Overseas Transfer From DBS To FTX In Less Than 20 Minutes
FTX is currently one of the top centralised exchanges (CEX) that most crypto investors use. It is generally cheap and user friendly, and also supports a wide variety of crypto tokens.
The first step is to convert your USD into UST.
For this example, I used the “Convert: button to swap my USD to UST, and the price should not deviate too much, as USD and UST should be pegged 1:1.
If you are buying any other token I would not recommend you to use the “Convert” button but to do a “Limit Buy” instead.
After you press the “Convert” button, the pop-up will allow you to input how much USD you would like to convert, and the price it is converting at.
Once FTX is done with the conversion, you would see UST on your wallet. Now you have to withdraw UST from the exchange into your Terra Station wallet.
If you do not have a Terra Station wallet, you can follow this guide to create one: How To Create A Terra Station Wallet And Send Native $LUNA Tokens From Crypto.com, Gemini
On the Terra Station wallet, your wallet address is just below your registered phone number.
Once you click the “Withdraw” button, this pop-up will appear. All you have to do is indicate the amount you want to withdraw, your Terra Station wallet address, the withdrawal method and the 2FA code.
Do note that the withdrawal method should be Terra and not Ethereum ERC20.
Once done, just press “Withdraw” and within the next hour, you should see your UST in your Terra Station wallet.
Head on to Anchor Protocol and ensure you are on the “Earn” tab. All you have to do it connect your Terra Station wallet and press the “Deposit” button.
Now, you just have to deposit your UST in the Anchor Protocol and sit back to enjoy the sweet sweet yield.
Do take note that there is a ~0.25 UST gas fee that you have to pay, so ensure that you have accounted for that.
If you want a more comprehensive walkthrough you can watch this video guide on how to stake on Anchor Protocol.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
Featured Image: Chain Debrief