Anchor Protocol is a decentralised finance (DeFi) protocol that is developed on Terra. In the month of May, investors of Terra and its token LUNA saw a massive plunge in prices, leading to a $40-billion wipeout of investors’ wealth within a matter of days. While LUNA is on a recovery path, thanks to creator Do Kwon’s Terra Revival Plan, it is important to know what Anchor Protocol is, and what sort of yields it promises to investors. Read on to find out everything you need to know on Anchor Protocol.
Anchor Protocol: What is it? How is it connected to LUNA?
As mentioned, Anchor Protocol is a DeFi protocol built within the Terra ecosystem. It is created by TerraForm Labs, the same startup co-founded by Do Kwon and Daniel Shin that developed Terra.
For those unaware, DeFi offers financial instruments by using smart contracts on a blockchain. DeFi doesn’t rely on middlemen elements such as banks, brokerages, or exchanges.
Since Anchor Protocol is connected to Terra, it goes hand in hand with the LUNA token. Its prime function is to assist investors in accessing services within the Terra ecosystem, acting as an interchain protocol.
Anchor Protocol price today
At the time of writing, Anchor Protocol (ANC) token is priced at $0.1764. As per CoinMarketCap data, ANC price saw a dip of 9.83 percent in the past 24 hours.
Anchor Protocol: How much yield does it promise?
Interestingly, Anchor Protocol claims to offer investors an annual percentage yield (APY) of up to 19.5 percent. So, if someone decides to invest in an Anchor Pool, the protocol promises a lucrative 19.5 percent interest.
As per CoinMarketCap, “Lenders can deposit their UST and earn attractive rates on their investments while simultaneously benefiting from low volatility. Borrowers can turn their LUNA collateral into productive assets without giving up control of it.”
ALSO ON ABP LIVE: LUNA 2.0: What Is It? Will It Help Revive Terra?
On May 27, LUNA’s revival proposal went into effect. The cause for the recent LUNA crash was primarily attributed to the de-pegging of the TerraUSD (UST) stablecoin. The new LUNA 2.0 plan makes the crypto free of its dependence on the UST stablecoin, making the entire ecosystem more like a decentralised autonomous organisation (DAO), which is a community-driven-and-controlled outfit that is not influenced by a central government.
After the new revival plan went into effect, ANC’s APY was reported to change from 19.5 percent, However, no further details were provided.
Anchor Protocol: How many ANC coins are there in circulation?
With a total supply of 1 billion, ANC has a current circulating supply of 222 million, as per CoinMarketCap.
Anchor Protocol: Where can you buy ANC?
Just like most other cryptos, ANC is available on several leading global crypto exchanges, including the likes of Binance, OKX, KuCoin, and Mandala Exchange.