Main navigation

Terra (LUNA) Staking Now Supported by Binance

Wed, 04/06/2022 - 06:15
article image
Alex Dovbnya
Binance has added support for Terra’s UST stablecoin, which allow earning up to 19.63% annual percentage yield
Terra (LUNA) Staking Now Supported by Binance
Cover image via
Read U.TODAY on
Google News

Binance, the world’s largest cryptocurrency exchange, now allows staking Terra’s UST stablecoin. It is possible to earn up to 19.63% annual percentage yield (APY).

The cryptocurrency exchange announced its plan to launch DeFi staking in August 2020. Initially, it allowed users to stake Dai, the native stablecoin of the MakerDAO platform.

Staking makes it possible for users to earn passive income by locking up their digital assets in a smart contract.

As reported by U.Today, LUNA, the native cryptocurrency of the Terra network, managed to reach a new all-time high of $119.18.

Terra’s UST is the biggest decentralized stablecoin with a market cap of $16.6 billion. Unlike Tether’s USDT and Circle’s USDC, it is now controlled by any centralized party.

Binance CEO and Ripple Co-Founders Among Richest Crypto Billionaires: Forbes

Is UST safe?

Anchor Protocol offers a much higher APY than competitors such as Dai and USDC (let alone traditional banking rates). Terra founder Do Kwon has commented that this rate is now available to over 30 million Binance users in a recent tweet.   

However, it is not clear whether it will be sustainable in the long run as many remain skeptical about whether the project will have staying power.  

UST briefly lost its peg in December 2020, dropping to $0.86. It also dipped way below the $1 mark last May.

As reported by U.Today, the Luna Foundation Guard, an entity created by Terraform Labs, started accumulating Bitcoin to help support the UST peg during periods of extreme market volatility. However, things could go south if the Bitcoin price sees a sharp drop.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at