20% Interest on UST

Hi there… I haven’t seen any of the 20% interest come in to my account on the UST that I have deposited. When are those interest payments earned? Weekly? Monthly? And where will it show me the amount of interest I have earned? It doesn’t show up in “transaction history”. Thanks!!

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Anchor users do not receive any ‘income’. Your UST was swapped for aUST when you deposited. The aUST price increases by the Anchor rate and is worth more UST over time. When you redeem, you will swap back aUST for more UST than you originally contributed based on the rate and time deposited, but there are no ‘payments’ in the interim.

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I’ll need some clarification on that.

So I’m getting aUST somewhere, right? And I would need to redeem that as UST, right? Where do I see how much aUST I have been given for my UST deposits?

In your history. When you redeem your deposit from Anchor, it automatically swaps aUST back to UST.

The aUST should also be in your wallet. You may have to add the token.

Ohhhh…it is coming together. I do see the aUST in my wallet. So when I deposit UST it gets converted to aUST and that is what I actually own. I never did a swap to get aUST so I assume it just happens automatically. The interest is paid as aUST. Can I see how much aUST I’m getting as interest? Does it show how much interest in aUST I’m earning? Is that paid daily? Weekly?

Thank you SO much for your help. I really appreciate it!!

You do not receive interest. The price of aUST automatically increases at the Anchor rate, so that when you redeem your Anchor deposits, you receive more UST since the price of aUST increased. There is no ‘interest’ that you would ever see.

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Okay so they are just increasing the price of aUST automatically. The price isn’t market-driven. They are steadily increasing the cost by 20% each year. How long can that go on? I guess this just amounts to a staking reward, right?

That’s a pretty hefty staking reward. I look at Anchor Earn as a savings account that pays 19.5%. I believe the self sufficient APY is somewhere around 11 - 15%. The yield reserves are there to account for lean times. It was just topped up in an effort to keep the yield stable until enhancements to increase the borrowing (which pays the yield on deposits) are introduced in the hopes of making this a self sufficient ecosystem.

I’m using it as a savings account as well. I’m pulling staking rewards and pool rewards from other coins and dumping it here as a way to generate some income.

I’m a novice so I have a lot to learn. But I don’t quite understand how this APY works. Or maybe I don’t really understand WHY it works and what it is for. Is Anchor using my deposited UST for something that generates higher “interest” than what they are paying me?

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I just started playing with crypto myself. Only here for a little over a month and lots of reading and research. From what I have read the UST isn’t currently being used to generate any yields. There have been discussions on doing something with it without putting the depositors at risk. I just dipped my toe into the borrowing side of this. I find this ecosystem here fascinating.

How does anyone learn this process if there is no documentation for this? Where can we read about this process in detail?

https://docs.anchorprotocol.com/ Good place to start.

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Nothing on this page provides a step by step “how to” or explains “Anchor users do not receive any ‘income’. Your UST was swapped for aUST when you deposited. The aUST price increases by the Anchor rate and is worth more UST over time. When you redeem, you will swap back aUST for more UST than you originally contributed based on the rate and time deposited, but there are no ‘payments’ in the interim.”

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True
This depends on your strategy on how to approach the obtainment of the mAsset. Delta Neutral would be a ratio of 2 UST to 1 aUST. Bear in mind, that you will free up UST with the short after 2 weeks. (1 to 1 ratio possible)

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