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[[File:Anchor.png|thumb|Anchor Protocol]] | [[File:Anchor.png|thumb|Anchor Protocol]] | ||
Anchor is a savings, lending and borrowing platform on the Terra blockchain. It offers an APY of up to 19.5% to stablecoin depositors and provides borrowers easy access to collateral-backed stablecoin loans. The platform was built by the South Korea-based Terraform Labs and launched on March 17, 2021. It was created in part to boost the overall demand for Terra's native stablecoin, UST. The current TVL of Anchor is over $15b.<ref>https://defillama.com/protocol/anchor</ref> | Anchor is a savings, lending and borrowing platform on the [[Terra]] [[blockchain]]. It offers an APY of up to 19.5% to [[stablecoin]] depositors and provides borrowers easy access to collateral-backed stablecoin loans. The platform was built by the South Korea-based Terraform Labs and launched on March 17, 2021. It was created in part to boost the overall demand for Terra's native stablecoin, UST. The current TVL of Anchor is over $15b.<ref>https://defillama.com/protocol/anchor</ref> | ||
== Overview == | == Overview == | ||
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===Collaterals=== | ===Collaterals=== | ||
Anchor protocols uses only | Anchor protocols uses only bonded [[Proof of Stake (PoS)|PoS]] cryptocurrencies as collateral. Whenever a user wants to provide collateral for a loan, he has to bond the crypto asset (ex. LUNA bonded into bLUNA, ETH bonded into bETH). Through bonding, the user gives up the staking interest of that coin which go to the Anchor protocol for it to pay UST lenders. | ||
Once the assets are bonded and deposited into the platform, UST borrowing is allowed. | Once the assets are bonded and deposited into the platform, UST borrowing is allowed. | ||
Borrowers pay a variable interest to lenders and are | Borrowers pay a variable interest to lenders and are incentivized through ANC emissions thus making borrowing on the Anchor protocol quite cheap. | ||
===UST lending=== | ===UST lending=== | ||