Anchor -- DeFis First Inter-Chain, Fixed-Income Savings Protocol Launches on Terra

By Carl Norcott.
Updated Mar 17, 2021

SEOUL, South Korea (PRWEB) March 17, 2021 - Terraform Labs (TFL), the company behind the Terra blockchain network has officially released the networks highly anticipated savings protocol, Anchor.

Billed as the Stripe for Savings, Anchor is the first inter-chain DeFi application that pools the emission from PoS blockchains, stabilizes it, and passes it on as fixed, high-yield interest to depositors. Anchors simplicity, novelty, and ease of integration bridge the gap between DeFis composability and mainstream fintech adoption as a passive savings vehicle for the masses.

Stable & attractive yields denominated in the dollar, and composable in smart contracts is the holy grail of cryptocurrency, says Do Kwon, Co-Founder and CEO of Terra. Anchors attractive yields on TerraUSD is going to lead millions of households to move their savings onto Anchors smart contracts, and will bring DeFi from the fringe to the mainstream.

At a high-level, Anchor operates as a decentralized money market on the Terra network that only accepts liquid staking derivatives as collateral on the supply-side. On the demand side, Anchor users simply deposit UST, one of Terras suite of fiat-pegged stablecoins, into the Anchor web app and accrue stable interest with a low-volatility yield enclosing a tight band around 20% APY.

Anchors launch partner, the crypto exchange CoinList, has also integrated Anchor and will enable CoinList users to directly deposit UST into Anchor without leaving the exchanges interface.

We evaluated a number of products that would enable CoinList users to earn interest on their deposits; both centralized and decentralized, says Mike Zajko, Head of Token Sales at CoinList. In the Anchor savings protocol we discovered one of the most elegant crypto native solutions for offering risk minimized stable yield and we are thrilled to be a launch partner.

On the supply-side, liquid staking derivatives enable bonded network tokens (e.g., SOL) into a PoS blockchains consensus model to be unlocked by the staker and deployed as a derivative representing a claim on the staked positions cashflows across various DeFi apps. In Anchor, borrowers lock-up collateral (staking derivatives) at a minimum collateral ratio of 150 - 200%, depending on the underlying collateral used. Borrowers are subsequently issued aUST, Anchors stablecoin, as debt in return for their locked collateral.

The first liquid staking derivatives viable as collateral on Anchor is bLUNA, a staking derivative of Terras native token LUNA. The bLUNA implementation is led by LIDO Finance -- the same DAO behind the ETH 2.0 liquid staking derivative. The bLUNA collateral ratio will initially be 200% and will soon be followed by several other staking derivatives from major PoS chains such as Polkadot (DOT), Solana (SOL), Ethereum 2.0 (ETH), and Cosmos (ATOM).

Anchor will be governed by the protocols native token, ANC, which captures a portion of Anchors yield and uses the generated revenue to buy back ANC on TerraSwap and disperse to ANC stakers -- scaling the tokens value capture linearly with the TVL of Anchor.

Anchor can be trivially integrated into exchanges, crypto wallets, and fintech platforms via the Anchor API and SDK -- opening up fixed-income savings derived from DeFis composability to the masses.

For media inquiries, please contact Kili Wall at (310) 260-7901 or Kili(at)MelrosePR(dot)com.

About Terra Terra is a Tendermint-based, public PoS blockchain network built on the Cosmos SDK. Terra is the first and most successful algorithmic stablecoin network where Terras native asset, LUNA, collateralizes a suite of fiat-pegged stablecoins that can be swapped in a multi-fiat forex market baked into the networks protocol. Demand for applications built on top of the Terra blockchain, such as the payment app Chai with 2 million active users, the synthetic assets protocol Mirror with more than $800 million in TVL, and now the mainstream savings vehicle, Anchor, underpins the demand for Terra stablecoins. As demand for Terras stablecoins increases via its applications, LUNA stakers capture the value of the network in swap fees, transaction fees, and a reduced supply of LUNA tokens.

About CoinList CoinList is the trusted platform for new crypto investments. We provide the community with access to the most cutting-edge innovations in the space while helping the most impactful crypto projects grow and succeed. Investors can buy, lend, trade, and stake the best new tokens like Filecoin, Flow, and Solana before they list on other exchanges. Crypto companies can run their token sales, meet compliance requirements, and manage custody and staking with our battle-tested infrastructure. With $800M in funds invested, $3B in trading volume, and over $6B in AUC, CoinList is one of the fastest-growing crypto-financial platforms. For more information, visit coinlist.co.