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What are the risks?
Usually with these strategies you are susceptible to some sort of de-peg risk, whereby you can get liquidated.
Is there any risk of that happening here where your entire position may get liquidated? These yields are juicy but I've held off from participating in Anchor protocol just because of their ponzi-like structure - their yield reserves are what's paying the interest right now, not genuine demand for their product.
Usually with these strategies you are susceptible to some sort of de-peg risk, whereby you can get liquidated.
Is there any risk of that happening here where your entire position may get liquidated? These yields are juicy but I've held off from participating in Anchor protocol just because of their ponzi-like structure - their yield reserves are what's paying the interest right now, not genuine demand for their product.
The risk of liquidation due to depegging is determined by your risk ratio / collateral percentage when you borrow assets. Personally I don't ever borrow over ~70-75% of my supplied collateral, so the stablecoin would have to depeg ~25-30% in order for my position to get liquidated.
Rewards on the supply side are earned via 2 mediums: Daily distribution of the GAMMA token and interest paid by borrowers of the token you are supplying.
good tutorial are u the moderator of planetfinance
but why there is Borrow "UST on Green Planet" so you mean we need to borrow money to get juicy apy
but why there is Borrow "UST on Green Planet" so you mean we need to borrow money to get juicy apy
You don't need to borrow UST to get the juicy APY. You can simply supply UST (BEP20 UST, contract address 0x23396cf899ca06c4472205fc903bdb4de249d6fc) to earn yield. Current rate is ~19.50% APY. You can earn additional yield relative to your risk tolerance by supplying UST > using your UST as collateral > borrowing UST > supplying the borrowed UST (not financial advice
