Two weeks ago Max Maher, the popular crypto youtuber summarized the annual yields of most major DeFi lending protocols. The topstars became Venus protocol for USDC with 15.7%, also Venus for BUSD with 14.19%, and Fulcrum for USDT with 16.2% annual yield.

But the video was missing a popular decentralized stablecoin: UST. It's the native stablecoin at Terra network, a low transaction fee blockchain, that's gotten a lot of traction lately. So much, that Terra's LUNA coin quickly became the 10th highest marketcap crypto on coinmarketcap.

If you want to get familiar with Terra, head over to their official website, terra.money. The website explains what Terra is, how to bridge your coins between different networks, and how the current Terra ecosystem looks like. First we're going to need the Terra wallet, very similar to Metamask that I guess by now all of you are familiar with.

On terra dot money, click the Learn tab and open Terra Wallet Guide. Follow the first link, Terra Station tutorial. First off, we install Terra Station, the version that suits your operating system. I'm currently on a Mac, so I'm gonna download the DMG installer.

Next step is creating a Terra wallet. Input a name for your newly created wallet and a password. Never ever share the password, nor the 24 word seed phrase you're about to see on the screen. Anyone with access to your seed phrase has access to all your funds on Terra. Keep this as a top secret. You need to write down the words for real, as you need to confirm this by inputting two randomly selected words from the seed phrase. After you created your Terra wallet, you own an address for it. Terra addresses can be easily differentiated from other network's addresses as they start with the string: terra.

You will need some funds in order to interact with Anchor Protocol. Head over to Binance, and purchase UST and LUNA coins if you don't have any. If you never used Binance before, I highly recommend trying it out for it's lowest fees in the industry. You can register for a free Binance account using the promotion link in the video description. After a quick spot trade, you can move to the Withdraw menu, select Terra Network, and provide your wallet address we just created. In two separate transactions, we send some LUNA and UST to our wallet.

We can confirm a successful transaction on Terra Finder. Input your wallet address at finder.terra.money and if the transactions were successful, we are ready to invest our UST with a whopping 20 percent APY. Anchor protocol is integrated into Terra Station, so we can utilise the application to deposit our funds and start earning some passive income. If your wallet doesn’t have UST yet, you can also use Terra Station to swap some LUNA to UST. Just keep in mind that you’ll need to keep a small amount of LUNA for transaction fees. Enter the desired amount, and confirm the transaction in your Terra wallet. If using Ledger, approve it on your hardware device. The system is now broadcasting the transaction to the blockchain. The transaction should be successfully included in the block in a second. But if anything goes wrong, you can always check it in Terra Finder.

As I mentioned, Anchor protocol is integrated in this app, so we can now move on to the Wallet menu, where we can see not just LUNA now, but also our precious UST. Click Deposit, enter the amount, and confirm the transaction. That’s all. In a few seconds, you will have successfully locked your funds in Anchor.

In the meantime, I show you app.anchorprotocol.com, the official Anchor web application, where you can also connect your wallet and handle your savings if you wish. Anchor has been giving close to 20% APY for months now, that means that for a 1000 dollar investment, you're easily cashing in an additional 200 dollars on the first year. If we count with compound interest over a five year period, your initial investment will worth two and a half times as much after 5 years. That's something, other DeeFi protocol's can't even compete with. If you want to release your funds, or harvest your yields, it's the same application, same process, you're just pressing the Withdraw button instead of Deposit.