Staking UST for 30%-60% APY 🕺

Wanting to do something with your UST during this bearish period? For all you LUNAtic’s, Spectrum Protocol has an option worth looking at. Make sure your cash-o-meter is getting yields as you wait for those great buying opportunities to come along.

Source Unsplash

Introduction

Crypto is rewarding but have extreme volatility compared to assets in TradFi. So when stablecoins pegged to the US Dollar became available in DeFi, ‘farming’ them became the a great way to make a stable income. Earning yields in stablecoins is mostly done through either lending, borrowing or Liquidity Pools.

I am using Spectrum protocol to stake my UST. We stake here via the bPsiDP-24m token(bPsi for short and born from the $Psi) which was the brain child of the Nexus and Pylon protocol’s.

The value of bPsi as one of the major stablecoin farm’s on Terra is not evident until we add auto-compounding to the equation with the following benefits:

  • Earns compounding rewards regularly.
  • Remains ~1:1 with UST as it is in the end a UST deposit with benefits, with the $Psi yield separate from the $UST deposit.
  • Nexus makes sure that Psi Liquidity Pools required to trade from bPsi to UST have the adequate volume for low slippage swapping.

At the time of writing APY is down from 67% to 30% , but hey, everything is down in this dip and APY suffers along with it.

How you do it?

Step 1: Get your UST

  • You need to get yourself on terrastation wallet
  • Transfer either UST or LUNA to your wallet
  • If you transferred LUNA, then swap it for UST on the wallet

Step 2: Purchase bPsi

Head over to https://terra.spec.finance/vaults and select bPsiDP-24m. In the usual course of events, you would need to use terra-swap to convert UST > Psi > bPsi, but Spectrum makes it easy and you can purchase your bPsi directly from UST.

As below, select UST, auto compound and deposit.

Step 3: Rewards

An added reward for staking through Spectrum protocal is you will receive SPEC as a bonus. 🕺

Conclusion

A percentage of your crypto should be in stable coin farming. Although the yields will vary, you do remove the volatility.

The APR of the farm depends on the price of $Psi. If the price halves, APR halves.

As always, DYOR before jumping into anything in crypto….

Update on 18 Jan 2022

So far the rates are bang on at 0.08% per day. My $279 has grown to $280.69 in 10 days…

So for a safe bet, this seems to be good option in my opinion….

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