Staking Terra’s UST stablecoin is now possible on Binance, the world’s largest cryptocurrency exchange. Earnings of up to 19.63 percent annual percentage yield are achievable (APY).
The bitcoin exchange has stated that DeFi staking will be available in August 2020. Initially, it allowed users to stake Dai, the MakerDAO platform’s native stablecoin.
Staking allows users to earn passive income by entrusting their digital assets to a smart contract.
The Terra network’s native cryptocurrency, LUNA, has reached a new all-time high of $119.18.
With a market cap of $16.6 billion, Terra’s UST is the largest decentralized stablecoin. It is no longer controlled by any centralized party, unlike Tether’s USDT and Circle’s USDC.
Terra’s Anchor Protocol has a substantially greater annual percentage yield (APY) than competitors like Dai and USDC (let alone traditional banking rates). However, it is unclear whether it will be sustainable in the long run, as many people are skeptical of the project’s viability.
In December 2020, UST momentarily lost its peg, falling to $0.86. Last May, it too fell well below the $1 level.
Terraform Labs’ Luna Foundation Guard began accumulating Bitcoin in order to support the UST peg during instances of significant market volatility.
However, if the Bitcoin price plummets, things could spiral out of control.
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