YOU CAN BUY ANCHOR PROTOCOL HERE
Today we are going to talk about Anchor Protocol (www.anchorprotocol.com), a new protocol born in Terra that offers stable and attractive performance driven by the participation returns of multiple Proof of Stake blockchains and offering frictionless access and integrations. On the one hand, Anchor Savings has no minimum deposits, account freezes or registration requirements. On the other hand, Anchor’s open source Savings-as-a-Service SDK can be integrated in 10 lines of code into any serviced application that has user balances so that it can reach any user who wants to use it without complication. You can buy Anchor Protocol here
What is Anchor Protocol?
Anchor is a savings protocol that offers low volatility returns on Terra’s stable currency deposits. The anchor rate is based on a diversified stream of participation rewards from leading proof-of-stake blockchains. Through these features, Anchor aims to be a platform with much more stable savings than money market interest rates.
BUY ANCHOR PROTOCOL
Anchor Protocol’s most important features:
High and stable deposit yields driven by the rewards of bAsset’s guarantees
Instant withdrawals through combined lending of stable currency deposits
Protection through liquidation of loans at risk of under-collateralization
Open source and permission-free, any third-party application can connect and earn interest without restrictions.
Developers can easily interact with Anchor with Anchor Earn, Anchor.js or EthAnchor.
Ecosystem
YOU CAN BUY ANCHOR PROTOCOL HERE
There are five types of participants in the Anchor ecosystem: depositors (lenders), borrowers, liquidators, ANC liquidity providers and, Oracle feeders.
Depositor (lender)
Lends stable Terra currencies to the Anchor money market, which are pooled and lent to borrowers, and the accrued interest is distributed proportionally to all depositors.
Borrower
Entities that create bAsset collateralized lending positions to borrow Terra stable currencies from the Anchor money market. By borrowing, users can gain access to liquidity without losing exposure to the price of their bAsset collateral. Anchor Protocol distributes Anchor Tokens as incentives for borrowers.
Liquidator
Monitors the existence of risky loans and requests liquidation of loan collateral if necessary. Collateral is settled by executing bids in the Settlement Agreement.
ANC Liquidity Provider
Entities that provide liquidity to the Terraswap ANC-UST Pair. They manage the initial start-up of swap liquidity between ANC and UST tokens.
Oracle Feeder
Terra account that is responsible for providing accurate and up-to-date pricing feed for bAsset collateral. They fundamentally serve to provide the necessary infrastructure.
Tokenomics
The Anchor token is the $ANC, Anchor Protocol governance token. ANC tokens can be deposited to create new governance surveys. ANC is designed to capture a portion of Anchor’s performance, allowing its value to scale linearly with Anchor’s assets under management (AUM).
ANC circuit
As we have said, governance over Anchor is managed by Anchor Token holders. Voting power is proportional to the number of ANC votes wagered. Therefore, voters with a higher ANC stake have a higher degree of influence in deciding whether to implement the changes listed in a governance poll.
ANC coin
Token name: Anchor Protocol
Token symbol: ANC
Network: Terra
Total supply: 1,000,000,000,000 ANC
How to use Anchor Protocol platform?
Let’s take a look at how we can currently use the Anchor platform to start taking advantage of the great benefits it provides, and see what the advantages and disadvantages of doing so are.
STEP 1
Navigate to the Chrome store and download the Terra Station extension.
STEP 2
LUNA is Terra’s native token. Betting LUNA allows you to get performance and participate in governance. In addition, it is the utility token within Terra. That is why it is recommended to use and own LUNA in your wallet. It can be purchased from different exchanges.
STEP 3
Terra Bridge will allow transferring assets between the Ethereum network and Terra-based blockchains. The idea is to connect the Metamask wallet and enter our Terra Extension wallet in the appropriate field to send LUNA.
STEP 4
The Anchor Protocol allows you to stake your LUNA as LUNA or bLUNA, and use it as collateral to withdraw a loan. To do this we will go to the Bond page in Anchor and select some LUNA amounts to convert them into linked LUNA.
When ready, we press “Mint”. Once you have done this, go to the Borrow tab and press Provide. Click on the bLUNA number next to “Purse” to use all your bLUNAs as collateral.
STEP 5
Borrow against your bLUNA or bETH: get a loan in UST. Navigate to the Borrow page using the top menu, select how much you want to borrow and then click Continue. Eventually, you will earn ANC as a reward for taking out a loan and getting the Anchor system up and running.
STEP 6
In addition, we can also navigate to the governance tab and bet ANC tokens or provide liquidity with ANC-UST for more rewards.
Conclusion
As we could see, Anchor Protocol acually offers users a convenient and frictionless way to get high returns on their stable coin deposits and spend them with ease. There is no doubt that one of Anchor Protocol’s strongest points is the security it provides against market volatility. Starting with Terra and ending with Anchor Protocol, there is no doubt that it is a solvent project with the possibility of growing. Undoubtedly, it is a project to keep in mind for this coming year as one of the most interesting projects to follow and with the greatest potential.