In this video, we’re taking a closer look at Anchor Protocol, the flagship DeFi product of the Terra ecosystem. In this deep dive you’ll see how much he invested, how it works in detail, and also go over the risks. Remember everything has risks and nothing here is Financial Advise.
Resources:
- Terra Station Chrome extension: https://chrome.google.com/webstore/detail/terra-station-wallet/aiifbnbfobpmeekipheeijimdpnlpgpp
- Terra Station wallet guide: https://docs.terra.money/docs/learn/terra-station/download/terra-station-extension.html?highlight=wallet%20guide
- Article about Anchor sustainability: https://wantfi.com/terra-luna-anchor-protocol-savings-account.html
How much UST would you have to stake in order to earn $500 per month?
Anchor aims for an APY of about 20%. APY is short for Annual Percentage Yield. So you would need to deposit around $30,000 worth of UST to generate $6,000 to get around $500 per month.
How does this work? You take the monthly amount that you would like to get and multiply that by 12 to get the total yearly amount. Once you have the yearly amount, you divide that number by 20%, or 0.2, in order to get the initial number needed.
Here’s how it’ll look if you want to earn $1,000 per month. $1,000 x 12 months = $12,000 for the year.
$12,000/0.2 = $60,000
(# you want every month) x (12 months) = Total Yearly Number you are aiming for
Total yearly number / 20% = Total monthly earnings
Let’s say you want to get to $2,000 per month. What would you need in order for that to happen?
$2,000 x 12 months = $24,000 and $24,000/0.2 = $120,000 starting number
Recent Posts
How To Get The Best Performance from Decentraland on Your Computer
Hardware acceleration: https://docs.decentraland.org/decentraland/hardware-acceleration/ Hardware acceleration Since Decentraland runs in a web browser, you might need to configure your browser...
Are you looking to find the best NFT photography projects to invest in? NFT's are one of the best ways for artists to get paid for their work. The idea of a "starving artist" is finally switching and...