Anchor Protocol offer UST depositors a 20% APY, which is among the highest in the world of stablecoins.
A Bit About Anchor Protocol
Anchor Protocol (ANC) is a decentralized money market based on the Terra chain, and it offers a 20% APY to UST depositors. The UST is Terra's stablecoin pegged 1:1 against the US dollar. ANC also provides its holders with governance rights and a portion of the protocol earnings. Notably, there is a maximum supply of 1,000,000,000 Anchor tokens that are distributed across a duration of four years. After this supply has been fully distributed, no more Anchor tokens will be reintroduced to the existing supply. As of now, around 150 million tokens have been released. Their initial distribution is as follows: Community fund – 66.7% of the ANC tokens (100 million) will be allocated to the Anchor community fund LUNA staking airdrop – 33.3% of the ANC tokens (50 million) to LUNA traders
A stable and attractive yield, powered by returns from several PoS blockchains.CryptoLists.com
Utility of Anchor Protocol?
ANC coins can be utilized as an incentive to bootstrap demand for borrowing and offer stability to the initial deposit rate. The ANC protocol distributes its tokens to stablecoin borrowers and is often proportional to the borrowed amount.
The Anchor Protocol is developed to capture a section of the yields it generates; thus, enabling the value of the stablecoin to linearly scale with their assets under management (AUM). ANC distributes its fees among its holders pro-rata on their stake, which benefits the token's holders as its adoption increases.
The other ANC tokens will be released in the span of four years. The release will increase the ANC's supply to 1,000,000,000 tokens. Its final distribution structure can be broken down as follows:
Investors – 20% of the tokens (200 million) will be reserved for Anchor's investors, with a lockup period of six months. Henceforth, a linear vesting schedule will be applied.
Team – 10% of the ANC tokens (100 million) will be reserved for the developing team behind ANC, with a vesting duration of four years. These tokens are set to be released at the end of every year.
LUNA staking airdrop – 5% of the ANC tokens (50 million) will be airdropped to LUNA traders on launch
Borrower incentives – 40% of the ANC tokens (400 million) will be released algorithmically for use as borrower incentives. The release takes place over four years, and if the distribution of borrower incentives fails to reach 400 million, the distribution will carry on until every token has been released.
Anchor Protocol Price detailsTERRA Contract address: terra14z56l0fp2lsf86zy3hty2z47ezkhnthtr9yq76
›› Details & Tokenomics
Advantages of Anchor Protocol+ It's pegged 1:1 to the USD, which minimizes the risk of inflation.
+ There is a decent growth potential.
+ ANC is backed by a powerful crypto community.
+ With ANC, you can withdraw your funds any time you wish to.
Disadvantages- The ANC crypto does not solve a real-world problem.
- There is a significant risk of being hacked.
- Collapsing together with the entire Terra chain.
Costs▪ Rated at 9/10
*Buy tax: 1% *Sell tax: 1% * at the time of writing. Note that this may change from time to time.
These tokens generate a purchasing pressure directly related to ANC's AUM. The protocol's fees are then used to buy tokens from the TerraSwap platform. The fees are distributed in the form of staking rewards to ANC traders and investors. Protocol costs are sourced from excess yield, collateral liquidation costs, and bAsset rewards.
Excess yield – The deposit yields that exceed the target rate of deposit usually accumulate in the yield reserve, where some part of it is used to buy ANC tokens. The purchased tokens are further redistributed amongst the token's holders.
Collateral liquidation costs – Whenever you liquidate a loan, 1% of the collateral liquidation value is deposited into the yield reserve, where some of it is used to buy ANC tokens.
bAsset rewards – Some of the rewards obtained from bAsset collaterals are used to buy ANC tokens, while the rest is used to replenish your yield reserve.
Governance costs – Deposits of ANC tokens from the Anchor governance polls that didn't obtain the needed quorum are usually distributed to ANC traders as their staking rewards.