Please note that the aUST opportunity on DeversiFI has been removed. The old Knowledge Base article which was last updated on the 11th April 2022 can be found below

AnchorUST (AUST)

Please review the risk warning at the bottom of this article and please do your own research before using the DeversiFi AUST Invest product

AUST Overview

The AUST token is the yield earning liquidity provider token of the Anchor protocol. The Anchor protocol allows users to supply Terra stablecoins (UST) to the Anchor Protocol Earn product to receive AUST

AUST holders receive yield that is derived from two main sources.

Anchor protocol money market borrowers stake/deposit collateral in order to borrow lenders UST. The protocol earns the yield from the two types of collateral that are deposited, which are staked Lunar (on the Terra blockchain) and staked ETH (on the Ethereum blockchain)
Anchor protocol money market borrowers have to pay interest on their borrowings. A portion of this interest goes to UST lenders

For more information on how the Anchor Protocol works, see the Anchor Protocol Website



Risks Warning

When you supply USDT on DeversiFi the AUST Invest section, you are essentially supplying USDT into the Anchor Protocol Earn product in exchange for the yield earning AUST tokens.

Although the AUST tokens that you receive are Ethereum tokens, their value is derived from staking and lending activities which happen on the Terra blockchain, not the Ethereum blockchain. The AUST tokens have been bridged from the Terra blockchain to the Ethereum blockchain so that they can be made available on the DeversiFi Layer 2 (Ethereum) platform.

By staking your USDT for aUST on DeversiFi, you expose yourself to a number of risks, which are not limited to:

Anchor Protocol solvency risk - that the Anchor Protocol can protect it's lenders from any principal haircuts
UST peg-risk - that UST can be redeemed for 1 USDC/USD/Stablecoin
Terra Blockchain risk - both the UST stablecoin and collateral that is deposited to Anchor by borrowers are Terra Blockchain products, not Ethereum blockchain products, and therefore the yield and principal of your AUST tokens are dependent on the Terra blockchain
Bridge risk

FAQ

How do I receive interest on my aUST?

As the Anchor protocol accrues earnings to the aUST token, the value of your aUST tokens increases. DeversiFI displays this increase in the value of the aUST tokens that you hold in your DeversiFi account as interest

Why do I not receive 1 aUST for every 1USDT that I stake

As the Anchor protocol earnings accrues to aUST tokens, aUST tokens are worth more over time. Therefore the amount of aUSD tokens that you receive for each 1 USDT is lower than 1. You can see how much each aUST token is worth by viewing the aUST/USDT market on the Trade section of DeversiFi https://app.deversifi.com/trade

Why does the amount of interest that I have earned sometimes decrease?

The amount of interest that is displayed under 'Total interest accrued' on the DeversiFi invest page that relates to your aUST investment can fluctuate. This is normal and is caused by short term UST/USDT exchange rate fluctuates.

Because you stake and unstake your your aUST tokens on DeversiFi using USDT, the value of aUST tokens on DeversiFI, as well as the accrued interest, is displayed in terms of USDt. When you stake your USDT, DeversiFi does the heavy lifting in the background for you and uses that USDT to swap for UST (the Terra Stablecoin which is needed to stake into the Anchor protocol) and then stakes that UST for the aUST tokens.

Because the UST/USDT rate fluctuates, the value of your interest may fall as well as increase, but over the long term, your accrued interest should keep increasing at the average APR rate, provided that one (or other) element in the risk warning above does not occur

You can see the UST/USDT exchange rate fluctuating on the CoinGecko page here: https://www.coingecko.com/en/coins/terra-usd



What are the fees for staking my USDT for aUST on DeversiFi?

In order to cover the cost of rebalancing and gas fees, DeversiFi charges a 0.2% unstaking fee on the amount of aUST that you unstake. Although no one likes fees, no fees are charged to stake, meaning that you do not pay anything to start participating in the aUST opportunity on DeversiFi
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