Anchor Protocol (ANC) — a savings protocol on the Terra blockchain.
Contents:
General information about Anchor Protocol (ANC)
Anchor was created as one of the first protocols on Terra. It is a savings platform that pays dividends, depending on the block reward from key Proof-of-Stake blockchains. Anchor has a stablecoin savings product with principal protection that provides a constant interest rate for savers. It does this by adjusting the interest rate on the deposit, allocating the block reward to the assets, used to borrow the stablecoins.
As a result, Anchor will offer a benchmark DeFi interest rate, which is determined by the yield of the most popular PoS blockchains. After all, the main goal of the Anchor protocol — to become the gold standard for passive income on the blockchain.
Due to significant price volatility, crypto assets may not be the best option for clients, looking for low-risk passive income. With Terra stablecoin money markets, Anchor offers a solution. Terra stablecoin contributors will receive stablecoins in return, avoiding the significant volatility of other crypto assets. The Anchor interest rate stability method provides additional protection against volatility by providing stable returns.
Special mechanisms
The Anchor Protocol (ANC) operates on three main mechanisms. bAsset, deposit market and credit market.
Main mechanisms:
| bAsset | Tokenized stake in the PoS blockchain is one of the key primitives of Anchor. The bAsset token symbolizes ownership of the staked Proof-of-Stake asset |
| Deposit market | Terra deposit pool generates interest on loans by determining the money market |
| Credit market | Anchor calculates interest rates for savers and borrowers for Terra, using an automatic interest rate algorithm, based on demand and loan availability |
Anchor uses a liquidity process to ensure that the underlying capital of depositors is protected. Deposits are safe as long as any obligations, secured by them, are over-collateralised. The purpose of the Anchor liquidation protocol - to secure deposits by paying off debts that may not qualify for collateral.
Where to buy an ANC token?
You can trade the ANC token on more than a dozen major cryptocurrency exchanges, some of them:
- Binance;
- Mandala Exchange;
- OKX;
- Gate.io;
The total supply of ANC tokens is 1 billion. All in all Anchor Protocol (ANC) is a strong project with viable utility that is the centerpiece of the entire Terra ecosystem.