Earn 40%+ on Stablecoins (Step-By-Step Guide)

[PlanetFinance]

With the recent launch of aUST, there is a strategy that can earn 40%+ stablecoin APY by supplying aUST & borrowing UST.

Here are the simple steps to leverage up your aUST:

Step 1: Bridge aUST to your BSC wallet
-Both LUNA & aUST on Planet, are wormhole assets and can be used on Portal. You’ll need to add aUST when you choose “select token”. You can do so at https://portalbridge.com/

Step 2: Supply aUST on Green Planet
-You can do do so at https://planetfinance.io/lending

Step 3: Borrow UST on Green Planet
-Borrow rates are typically 20%–60% better for those who reach level 3 by supplying GAMMA.

Step 4: Bridge UST to Terra (BEP20)
-The bridge is typically called "shuttle" and you can do so at https://bridge.terra.money/

Step 5: Deposit UST to get aUST
-To use Anchor, you’ll need to have a Terra Station wallet. You can find it at https://chrome.google.com/webstore/detail/terra-station-wallet/aiifbnbfobpmeekipheeijimdpnlpgpp

Step 6: Supply aUST on Green Planet

*Tip: the lowest borrow rates are available to those supplying enough GAMMA to qualify for Level 3. To qualify for Level 3, the value of your GAMMA supplied needs to equal at least 10% of the value of your collateral on Green Planet.

The beautiful part of this strategy is, if you have aUST supplied earning 20%+ and the stablecoins you are borrowing, are cheaper than 20%, your borrow usage should continue to reduce over time, allowing you to continue to borrow more. This happens when the value of your collateral is increasing faster than the interest on your borrowed debt.

If you want to learn more join Planet’s telegram: https://t.me/planet_finance

[Sea Trader]

This is legit. Planet also has a partnership with Terra: https://planetfinanceio.medium.com/planet-finance-working-with-terraform-capital-91fb8bd11b83

[timerland]

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.

[dansus021]

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 

[Sea Trader]

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.

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  

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