What Is Anchor Protocol (ANC)?
Anchor Protocol is a lending and borrowing protocol offering up to 19.5 % return on stablecoin deposits. Lenders can deposit their UST and earn attractive rates on their investments while simultaneously benefiting from abject excitability. Borrowers can turn their LUNA collateral into productive assets without giving up manipulate of it. Anchor Protocol can thus attract risk-averse investors looking for high-yield, low-volatility investments and increase demand for UST. This advances the adoption of UST as a stablecoin and subsequently the adoption of the Terra visualize in DeFi. With the increasing adoption of Terra, whose founders are behind the plunge of Anchor Protocol, the monetary value of LUNA will increase .
Who Are the Founders of Anchor Protocol?
Anchor Protocol was founded in March 2021 by Terraform Labs, a south korean fintech company founded by Daniel Shin and Do Kwon. Terraform Labs is besides behind the Terra layer-one blockchain that has taken the DeFi quad by storm, rising by 17,000 % in 2021.
Before launching Terraform Labs, Mr. Kwon was CEO of Anyfi, a inauguration providing decentralized radio enmesh network solutions. furthermore, he previously worked as a software engineer for Microsoft and Apple. Mr. Shin co-founded and headed Ticket Monster, a major south korean e-commerce platform. He besides co-founded Fast Track Asia, a startup incubator that helps entrepreneurs build fully functional companies. Terraform Labs is one of the biggest and most in-demand companies in the cryptocurrency space and has raised $ 150m from major crypto investors like Arrington XRP Capital, Pantera Capital, Galaxy Digital, and BlockTower Capital .
What Makes Anchor Protocol Unique?
Anchor stands out from countless other money marketplace protocols like Aave and Compound thanks to its elegant user interface and simple-to-use functionality. The protocol ’ s congress of racial equality value proposition is connecting borrowers and lenders by offering the early a direction to borrow in stablecoin without forfeiting their investments and the latter an attractive concern pace on stable assets. Lenders connect their Terra Station wallet and sediment UST by paying a 1.60 UST transaction fee and earn the protocol ’ s 19.5 % annual matter to pace on a pro-rata footing for every pulley transaction ( every eight seconds ). Borrowers bond their LUNA tokens and receive bLUNA ( bonded LUNA ) in retort. They can borrow up to 60 % of their lodge collateral in UST and pay an interest rate that is slenderly higher than that paid to lenders. Bonded LUNA can be unbonded after 21 days. however, they besides receive ANC tokens distributed by the protocol to incentivize its borrowing. The protocol uses gross from the spread between borrowers ’ and lenders ’ interest rates to earn staking rewards on Terra, which are between 5 % and 7 % per annum. The Anchor Yield Reserve is the protocol ’ s treasury that covers its expenses when rates have not reached a static equilibrium. For case, during the summer 2021 crypto market correction, Terraform Labs injected 70 million UST into Anchor ’ s Yield Reserve to ensure protocol stability .
Check out Astroport ( ASTRO ) — a decentralized exchange on Terra.
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How Many Anchor Protocol (ANC) Coins Are There in Circulation?
ANC is the protocol ’ s native administration token that can be staked to receive vote rights and influence Anchor ‘s future. Its entire add is 1 billion, with a current go around supply of 222 million. The ANC keepsake is distributed as follows :
- Borrower incentives (40%)
- Investors (20%)
- Team (10%)
- Luna staking rewards (10%)
- Community fund (10%)
- ANC liquidity (5%)
- Airdrops (5%)
anchor does not offer any data about vesting schedules. The ANC token reached an all-time high of over $ 8 curtly after its launch, but has significantly lost in value since. however, if UST supply continues to expand, ANC could potentially revisit its trade compass between $ 3 and $ 4 .
How Is the Anchor Protocol Network Secured?
Anchor is built on the Terra blockchain, a layer-1 blockchain using a delegate proof-of-stake consensus mechanism based on Tendermint. LUNA token holders can either venture tokens themselves to secure the network or delegate their tokens to other validators. Anchor has besides been audited a full of three times by Cryptonics and Solidified and found to be impregnable. The protocol offers a Bug Bounty Program with rewards between $ 500 and $ 150,000.
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The ANC keepsake is available as a native CW-20 token on Terra and as an ERC-20 keepsake on Ethereum .
Where Can You Buy Anchor Protocol (ANC)?
ANC is available on Binance, OKX, Mandala Exchange, KuCoin, and Gate.io. If you want to learn more about how to start buy cryptocurrencies, you can read more on CoinMarketCap Alexandria .