By revisesociology on Skatehive
Yes that's right the Anchor Protocol on the Terra Network will PAY YOU in ANC for borrowing UST against collateralised bETH..... I recently decided to do this as I wanted a way to get my ETH yielding more than it currently does in the Cub Kingdom, which is ? Hmmmm - it is quite complex, but I like Anchor, and I like the BIZARRE oddness of being PAID to borrow UST..... Using ETH as collateral on Terra to borrow UST pays me more in ANC than the interest on the UST I borrow, AND I can stake that that UST to earn an additional 20% return. However that additional 20% is only on the smaller amount I've borrowed, NOT on the full value of the ETH bonded! (I've gone with an initial 25% of the value to be REALLY SAFE), so I'm only actually earning around 5% on the ETH I've got staked, but I could easily up this, by borrowing more, or swapping for something a bit more adventurous than UST. In addition to the above, I can also stake the ANC I earn or pool it with UST for a 6 and 50% return respect