Anchorprotocol.com is a savings protocol offering low-volatile yields on Terra stablecoin deposits. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. They believe that a stable, reliable source of yield in Anchor has the opportunity to become the reference interest rate in crypto.
The Anchorprotocol.com defines a money market between a lender, looking to earn stable yields on their stablecoins, and a borrower, looking to borrow stablecoins on stakeable assets. To borrow stablecoins, the borrower locks up Bonded Assets (bAssets) as collateral, and borrows stablecoins below the protocol-defined LTV ratio. The diversified stream of staking rewards accruing to the global pool of collateral then gets converted to stablecoin, and then conferred to the lender in the form of a stable yield.
Deposited stablecoins are represented by Anchor Terra (aTerra). aTerra tokens are redeemable for the initial deposit along with accrued interest, allowing interest collection to be done just by holding on to them. Anchor is structured to provide depositors with:
High, stable deposit yields powered by rewards of bAsset collaterals
Instant withdrawals through pooled lending of stablecoin deposits
Principal protection via liquidation of loans in risk of undercollateralization
Anchor is an open, permissionless savings protocol, meaning that any third-party application is free to connect and earn interest without restrictions. Through Anchor.js or EthAnchor, developers can interact with Anchor using just a few lines of code.
If you’re eligible, then you will be able to claim your ANC rewards.
The snapshot of LUNA stakers was taken on January 15th at 00:02:02 UTC at a block height of 2179600.
A total pool of 50M ANC has been allocated in which the users who were staking LUNA during the snapshot are eligible to claim free ANC at a ratio of 1 LUNA : 0.16 ANC.
An additional pool of 100M ANC will be distributed every week to LUNA stakers over the next two years.
For more information regarding ANC distribution, see this page.
Anchor offers Easier Integrations
Anchor’s open source Savings-as-a-Service SDK can be integrated in 10 lines of code to any serviced application holding user balances.
Anchor offers frictionless access
Anchor savings has no minimum deposits, account freezes, or signup requirements – it can be used by anyone in the world with access to the internet.
Anchor Bug Bounty Program
Security is core to our values, and we value the input of hackers acting in good faith to help us maintain the highest standard for the security and safety of the Anchor ecosystem. Anchor Protocol, while it has gone through professional audits and formal verification, depends on new technology that may contain undiscovered vulnerabilities.
Anchor encourages the community to audit our contracts and security; we also encourage the responsible disclosure of any issues. This program is intended to recognize the value of working with the community of independent security researchers, and sets out our definition of good faith in the context of finding and reporting vulnerabilities, as well as what you can expect from us in return.
Anchor offers substantial rewards for discoveries that can prevent the loss of assets, the freezing of assets, or harm to a user, commensurate with the severity and exploitability of the vulnerability. Anchor will pay a reward of $500 to $150,000 for eligible discoveries according to the terms and conditions provided below.
Anchor Token (ANC)
The Anchor Token (ANC) is Anchor Protocol’s governance token. ANC tokens can be deposited to create new governance polls, which can be voted on by users that have staked ANC.
ANC is designed to capture a portion of Anchor’s yield, allowing its value to scale linearly with Anchor’s assets under management (AUM). Anchor distributes protocol fees to ANC stakers pro-rata to their stake, benefitting stakers as adoption of Anchor increases — stakers of ANC are incentivized to propose, discuss, and vote for proposals that further merit the protocol.
ANC is also used as incentives to bootstrap borrow demand and initial deposit rate stability. The protocol distributes ANC tokens every block to stablecoin borrowers, proportional to the amount borrowed.
A portion of rewards from deposited bAsset collaterals are used to purchase ANC, with the remainder used to replenish the yield reserve. The ratio of bAsset rewards used for ANC purchases can be adjusted thorough governance if the yield reserve’s inventory rises to a sufficient level.
Collateral Liquidation Fees
Whenever a loan is liquidated, 1% of the liquidated collateral value is sent to the yield reserve, which a portion of which is used to purchase ANC. This fee is applied separate from bid premiums.
ANC token deposits of Anchor governance polls that have failed to reach the required quorum are redistributed ANC stakers as staking rewards.
The security of Anchor Protocol is our highest priority; our development team, alongside third-party auditors and consultants, has invested considerable effort to create a protocol that we believe is safe and dependable. All contract code and balances are publicly verifiable, and security researchers are eligible for a bug bounty for reporting undiscovered vulnerabilities. They believe that size, visibility, and time are the true test for the security of a smart contract; please exercise caution, and make your own determination of security and suitability.
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One of Coinworldstory's longest-tenured contributors, and now one of our news,ico,hyip editors, Verna has authored over 6900+ stories for the site. When not writing or editing, He likes to play basketball, play guitar or visit remote places. Verna, to his regret, holds a very small amount of digital currencies.