How to put UST (Terra) to Anchor Protocol for 20% interest in Singapore

This post serves to consolidate on how to transfer your SGD to Anchor Protocol to stake in the “Earn” for 20% APY (annual percentage yield) specifically from Singapore. This is the cheapest route I have found thus far.

Summary:

  1. Transfer USD to Binance.com via swift from DBS bank via “DBS Remit and Overseas Transfer”.
  2. Trade USD to USDT (tether) on Binance.com
  3. Transfer USDT to Kucoin via Trc20 to save costs
  4. Trade UDST to UST (Terra) on Kucoin
  5. Transfer UST to Terra station wallet
  6. Deposit UST to Anchor protocol to earn 20%

Prerequisites:

  1. DBS digibank account
  2. Binance.com account (NOT Binance.sg)
  3. Kucoin account
  4. Installed Terra station Chrome extension
  5. Some knowledge of stable coins and different blockchain networks

1. Transfer USD to Binance.com via swift from DBS bank

See this excellent post by sgcrypto.info for a comprehensive guide on how to fund your Binance.com account from DBS account.

Note: that the remit service is only executed by DBS during working hours Monday to Friday. Transferring on Friday evening likely results in delayed transfer on the following Monday.

2. Trade USD to USDT on Binance.com

Log in to Binance and go to Wallet-> Fiat and Spot

Locate the BUSD row, which is a stable coin representation of USD transferred from your DBS bank account and press the “trade” link

Binance screenshot

This should bring to the trading window for the BUSD/USDT pair trading page. Now you must “sell” your BUSD for USDT. Choose “Market” and pull the slider all the way to the right to include all the BUSD holdings and press the bright red “Sell BUSD” (this is an easier option than limit trading which I will not cover here)

Binance screen shot

After selling the BUSDT should be in your Wallet overview page

3. Transfer USDT to Kucoin via TRC20 to save costs

Next, we want to withdraw USDT to Kucoin exchange. But we need the Kucoin wallet address.

Log in to Kucoin account. Go to the Assets->Main Account->Deposit page, select USDT in the dropdown. You can see a few networks that can be used to transfer USDT to Kucoin, due to the high network fees on ETH (at the time of writing), we use TRC20 to transfer. Select TRC20 to reveal the wallet destination address. Copy this TRC20 address

Warning: please double check this destination address, copy it and do not try to type it. Funds transferred to the wrong addresses are not recoverable.

Go back to Binance and go to Wallet-> Fiat and Spot->Withdraw

Select USDT and press withdraw. Make sure the TRC20 option is chosen and copy and paste the Kucoin TRC20 address. Note that the transaction fee is 1 USD only compared to the ETH option of 20 USD

4. Trade USDT to UST on Kucoin

After 30 mins or so, the USDT should reach your wallet in Kucoin. Kucoin has a concept of the “main account” and “trading account”. To trade, you must transfer USDT to your own trading account.

Now go to Assets->Main Account->USDT->Transfer and transfer all the USDT to the trading account.

Go to Assets->Trading Account -> USDT/UST. This should bring to the trading window for the USDT/UST pair trading page.

By now it should be quite familiar as the concept is the same as Binance. We want to sell USDT for UST.

Choose “Market” and “100%” to include all the USDT holdings and press the bright red “Sell USDT”. You should have all your holding in UST.

5. Transfer UST to Terra station wallet

Install the Terra station chrome extension. And copy out your Terra wallet address. The address should start with “terra-“.

Go back to Kucoin->Assets->Trading account. We need to transfer the UST back to the “Main account”.

Now go back to Kucoin->Assets->Main Account and select UST and click on withdraw. Copy-paste the Terra wallet address and fill in the amount. The memo can be left empty and the transfer will still be successful (tested). Note the fees of 4 USD. Double-check and press confirm to initiate the transfer.

Warning: must emphasis again that the address must be correct else the UST is forever lost.

After around 10 minutes refresh your terra wallet the balance should be updated with the transferred UST.

6. Deposit UST to Anchor protocol to earn 20%

Go to Anchor protocol website https://anchorprotocol.com/

Click Webapp. Now connect the chrome Terra wallet to the website by pressing the connect wallet button. Then press deposit and type in the amount to stake and press proceed.

That’s all, your savings are now earning 20 + percent in UST.

Estimation Of Cost Of Transfer Process

Forex change~0.1%
Binance trading fees0.1%
Binance withdrawal fees via TRC201 USDT
Kucoin trading fee0.1%
Kucoin withdrawal fees to terra station4 UST
Deposit fees to Anchor1 to 2 UST

In total, I lost around 7.50 USD for transferring 1000 USD using this method. But since Anchor gives around 0.548 cents per day, which means the cost is covered by the interest earned in around 14 days!

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