The central theses
- Anchor is a credit platform based on the Terra blockchain.
- With the expected release, the price rose from $ 0.05 to $ 3.6.
- Terra is on the rise in 2021 and is widespread in Korea.
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Anchor is a DeFi protocol on the Terra blockchain that allows users to borrow or store their stablecoins and proof-of-stake assets.
Terra ecosystem is growing
Terra is a blockchain that focuses on various stable coins tied to fiat currencies. The best known are the US dollar token (UST) and the Korean won token (KST).
The blockchain enables users to easily pay for goods and services through their app. Terra’s main stablecoin, the UST, saw a rapid surge in usage, ranking fifth in terms of market capitalization Data from CoinGecko.
Today is the same team, Terra Labs, has finally launched Anchor, the highly anticipated DeFi Fixed Rate Savings Protocol.
The new anchor protocol acts as a savings protocol in the Terra network and offers UST depositors a fixed APY interest rate of 20%.
On the one hand, UST is accepted on the supply side; The Anchor App will Also accept liquid staking derivatives from PoS chains as collateral for loans on the borrower side.
With liquid stake derivatives, staked tokens can be activated in PoS blockchains and used as security on Anchor. The first security for Anchor is bLUNA, a stakeout derivative of Terra’s native token LUNA. This is followed by other blockchains such as Polkadot (DOT), Solana (SOL) and Cosmos (ATOM) as well as Ethereum 2.0 (ETH) as security on the supply side.
According to the team, Anchor is the first interchain DeFi application that combines the rewards of PoS blockchains and pays a stable high interest rate for depositors.
The protocol claims to overcome the highly cyclical nature of stable coin rates on other DeFi platforms such as Compound, Aave and Maker.
“Anchor’s attractive returns for TerraUSD will move millions of households to transfer their savings to Anchor’s smart contracts and take DeFi off the edge of the mainstream,” said Do Kwon, co-founder and CEO of Terra.
The Terra token has seen a meteoric surge from $ 0.65 on Jan 1st to $ 18 at the time of writing.
While the start was delayed by a DDoS attack Against the public nodes of Terra, the project manager Do Kwon announced that many real people could buy tokens.
The terra ecosystem is growing rapidly and is already very popular in Asia, but it remains to be seen whether it can convince the rest of the world.
Disclaimer: The author held the ETH at the time of writing.
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