ANC - UST LP Staking

High exchange liquidity of ANC tokens is crucial for retaining strong deposit rate stability via ANC-incentivized borrowing. It is also critical for Anchor Governance, as a low ANC exchange liquidity enables malicious entities to gain a sufficient supply of ANC and manipulate governance poll results.

As such, a small portion of the ANC supply have been allocated on protocol genesis as incentives for users that provide exchange liquidity to ANC tokens, specifically to the ANC-UST Terraswap pair. ANC incentives for ANC liquidity providers are distributed through the use of Terraswap Liquidity Provider tokens.

Terraswap's Liquidity Provider tokens, or LP Tokens, are minted uniquely to each exchange pair type and represent a liquidity provider's share of liquidity contribution to the pair. Anchor measures the degree of ANC liquidity contribution by distributing ANC rewards pro-rata to the amount of ANC-UST LP tokens staked to the protocol.

ANC rewards are accrued to LP stakers on a per-block basis, which they can later submit a request to claim. The Dashboard section of Anchor WebApp's GOVERN page includes an interface for liquidity providers to stake LP tokens and accrue rewards.

The ANC - UST LP section of the GOVERN page displays:

  • APY: Annualized percentage yield (APY) of liquidity rewards given to ANC-UST LP token stakers.

  • Total Staked: Total number of ANC-UST LP tokens staked by all users.

Providing (Pooling) liquidity to the ANC-UST pair

Users must have a balance of both ANC and UST tokens in order to provide liquidity.

1. Navigate to the GOVERN page and click on [ANC - UST LP].

2. Select the [POOL] tab.

3. Select the [Provide] tab.

4. Enter the amount of ANC tokens to provide liquidity. The WebApp will automatically calculate the amount of UST required. Click [Add Liquidity].

5. Station Extension should prompt you to sign a transaction that contains the liquidity provide operation. Confirm the details presented and enter your password to sign.

6. Liquidity provide complete. LP tokens are minted to the user.

LP tokens minted from provided liquidity must be staked to receive LP staking rewards.

Withdrawing liquidity from the ANC-UST pair

1. Navigate to the GOVERN page and click on [ANC - UST LP].

2. Select the [POOL] tab.

3. Select the [Withdraw] tab.

4. Enter the amount of LP tokens to burn. The WebApp will display the estimated amount of ANC and UST tokens the user will receive. Click [Remove Liquidity].

5. Station Extension should prompt you to sign a transaction that contains the liquidity withdraw operation. Confirm the details presented and enter your password to sign.

6. Liquidity withdraw complete.

Staking / unstaking ANC-UST pair LP tokens.

1. Navigate to the GOVERN page and click on [ANC - UST LP].

2. Select the [STAKE] tab.

3. Select whether to stake or unstake.

4. Enter amount to stake / unstake and click [Stake] / [Unstake].

5. Station Extension should prompt you to sign a transaction that contains the stake / unstake operation. Confirm the details presented and enter your password to sign.

6. Stake / unstake complete.