source: https://medium.com/coinmonks/atom-as-collateral-for-ust-c777d5ad8163
Dear LUNAtics,
I have been using Anchor for borrowing $UST to enjoy the almost 20% APR against my bETH and bLUNA. Seriously I don't really understand the Terra blockchain and Anchor protocol well and I know that it has been the hot topic of the crypto town for the past few months. Not without controversy though. But so far I am happy with what it has brought to me.
Therefore, when it was announced that Anchor will accept bATOM, the staked $ATOM on pSTAKE protocol, as collateral to borrow $UST and be able to enjoy the near 20% APR, I got interested.
So I decided to take a plunge today so I can use my spare $ATOM to borrow some more $UST on Anchor.
It turns out to be a bad idea. For me at least, with only 12 $ATOM (roughly $250 atm). Let's see what happened. :(
Go to Anchor first: https://app.anchorprotocol.com/borrow
The first two assets are forerunners and the bottom two are new comers. Press GET for bATOM.
It takes you to pSTAKE: https://app.pstake.finance/anchor
Need to connect to Ethereum address to carry on. I did not know exactly why but did it anyway (that's where misfortune started)
So I was connected. Went to Staking. With 12 $ATOMs lying in my Keplr wallet, I filled in 12 and press Deposit and Stake.
So it says I should get 12 stkATOM.
You will get a Cosmos address and a memo for you to send your $ATOM. I did. You don't need to manually do that. The system will put in the amount, address and memo for you. Just click Keplr and agree.
I had the feeling that it would appeared in my Ethereum wallet and it did. 12 stkATOM as promised.
So I thought I can carry on with my Anchor mission. Anchor needs bATOM, whatever that is, so I suppose "To bATOM" looks right. Max to 12 and put in my Terra address and BANG!!
Fuck! It's an Ethereum transaction and would cost me $10 just to approve. Who knows what else fee would appear after that!
Since my total money is just around $250. Doesn't seem right to spend too much for tx fees.
So I regretted and sought to 'unstake'. It says stkATOM would need to unstake to pATOM, another prefix and god knows what the hell it is...
The point is...
The tx fee is $70-ish on Ethereum. WTF!!!
I am trapped here. Stupid decision.
When I did not know how to deal with it, I found that my stkATOM actually generate some rewards in pATOM!! with a 12% APR I suppose...
Well... I suppose I will let it sit here for a while before I become more knowledgeable to do anything next.
Expect a post on what pSTAKE protocol soon. I will have to understand it better to save my stuck stkATOM! lol
Posted Using LeoFinance Beta
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