In the crypto market, stable coins play an important role in trading cryptocurrency and digital assets to maintain a stable value. It works as the catalyst while trading, lending, and borrowing digital assets. It is gradually becoming popular as the supply of stable coins has reached up to $40 billion at the start of 2021. Moreover, $200 billion transaction volume exceeded per month, which shows that many people have started relying on stable coins to generate revenue.
Generating an annual percentage yield from stable coins is becoming a concern for investors as many stable coins have fixed annual percentage yields. For instance, there are many predictions regarding Tether that its price will fluctuate, disturbing global crypto trading. It was previously known that every Tether coin is backed with 1 USD, which means every coin is worth 1 USD. But as Tether started its partnership with Bitfinex, there were many speculations that both companies hid their loss in funds. Afterward, many users preferred Terra as it has a fixed annual percentage yield of 19.6%.
The main reason is that Terra seems comparatively quite safe and less risky when price fluctuation. In October, the founder and CEO of Terra Do Kwon lodged a civil lawsuit against the US’s Securities Exchange and Commission (SEC) as they improperly issued subpoenas to Terraform labs.
To earn up to 160% annual percentage yield, Abracadabra has built a potential strategy called Degenbox which will function as a high yield strategy. With the release of this high yield strategy called degenbox, the platform Abracadabra can now support non-interest-bearing tokens and generate up to 160% annual percentage using Degenbox’s strategies.
This strategy automatically runs a performance-enhancing plan of action. Now, it also depends on how confident you are with purchasing a stable coin and how much you believe that the price of this particular coin won’t fluctuate.
As everything in the crypto world is unpredictable, to generate more than 100% of annual percentage yield through stable coins, you must make wise and timely decisions. So make sure that you look out for some potential stable coins that will be less likely to show fluctuations in the market and provide full security of your funds.
If you want to know how to utilize Degenbox high yielding strategy, you must know about Abracadabra.money or SPELL, a protocol token used to incentivize. This platform allows its users to borrow stable coins in return for interest-bearing assets. There are interest-bearing platforms like Yearn on which you can deposit the money you borrowed before.
Afterward, it will issue you new interest-bearing assets that you can again use to borrow money from other platforms. To avoid unnecessary risks, you should be careful about high liquidity market securities and check the settings of re-borrowing properly.
To deposit UST from Abracadabra.money, they opened a vault through which you can deposit or borrow the non-interest-bearing coins. They recently opened this vault; it’s their first time using the deposit borrow mechanism that provides you with up to 160% annual percentage yield.
Also, with the current market situation in which many risks are involved, and there are fewer chances to earn a high yield percentage, this platform sounds amazing. Many users are finding this platform beneficial, so you need to check the availability in the vault.
So here comes the question of how to use the platform of Abracadabra to borrow stable coins. For this, firstly, connect your MetaMask to Ethereum blockchain technology. Metamask keeps your transactions safe and makes the trading of cryptocurrencies easier. That’s why here using MetaMask is important because it securely connects your stable coins to decentralized applications.
Afterward, go to the section “borrow,” through which you can see the heading of UST, and there you will find their stable coins called MIMs, which will be close to 0. Here are the steps to use Abracadabra.money platform effectively and easily to earn more than 160$ annual percentage yield using their stable coins. Let’s dive into details:
Step 1: Firstly, purchase UST and keep it in your crypto wallet, a MetaMask secured by blockchain technology. You can choose the exchange of your choice to buy UST, and as these things occur instantly, you cannot keep it in Anchor (this protocol makes you earn about 20% annual percentage yield).
Step 2: Now follow them on their social media account like Twitter which is @MIM_Replenishes. Make sure that you turn on their notification bell so that you will be notified about their recent updates.
Step 3: To continue the process, make sure that the borrowing page of Abracadabra is still open and also keep your MetaMask connected to this site.
Step 4: When the borrowing page of Abracadabra will show the phrase “20,000,000 replenished for UST”, it’s time to deposit your UST quickly.
As the site of Abracadabra has recently opened its high yielding strategy, they are trying to increase the supply of UST from $20 million to $100 million. Ensure that you don’t put your money in the anchor protocol, as it will take time for the transaction. Also, the recommended liquidation level is 0.79. Follow all these instructions carefully as this whole procedure will proceed quickly.