Terra’s (LUNA) largest Defi platform, Anchor Protocol, plans to stop after the UST collapse. Anchor was providing a 20% return to investors staking UST. The community is now voting to shut down the platform.
LUNA platform can stop Anchor Protocol, community votes
Anchor Protocol, Terra’s largest DeFi platform, has recently decided to freeze Anchor Earn. It is recommended to stop the borrowing functions to protect against attacks. The community now votes to decide the fate of Anchor Protocol. Given that 70% of the stablecoin supply was locked onto the platform, Anchor was essentially ground zero for the UST crash. Stablecoin’s price instability triggered one of the biggest crashes ever.
Terra 2.0 down 80% off ATH price
Anchor Protocol reports that users have chosen to limit its functionality. All actions on the platform are now passive, except depositing USTC to withdraw funds and receive AUST. However, interest-free deposits will remain open permanently. This allows Miror Protocol to use aUST as collateral to earn tokens whenever borrowers need to offer any margin call.
More than 23.11% of users voted “Yes” in favor of this offer.
TerraClassicUSD is trading at $0.01201 at the time of writing. DO Kwon has released an airdrop to revive the crashed Terra. However, this move was also aimed at providing assistance to aggrieved investors. Meanwhile, the price of the new LUNA token has lost 80% since its launch. It trades at an average of $3.50.
Anchor has been an important part of Terra since its inception. Most of society wants this to continue. The decision regarding his future caused a serious debate among the community. Terra’s new token launch had a similar backlash.
Do Kwon raises interest rate a week before launch
A report, behind Anchor, revealed that the protocol was designed to have an original interest rate of 3.6%. However, the offer was not accepted by Terra chief Do Kwon. Anchor’s interest rate rose to 20% just a week before launch.
The report stated that they kept Terra slightly higher than the bank rate to keep them stable. However, there was not enough money left in the company to pay the interest. The interior design document by Terraform Labs showed that the rate hike was taken to attract more investors.
Terra founder Do Kwon’s Twitter goes private as LUNA drops 20%
As we quoted by Kriptokoin.com, Terra Classic is almost a free fall. A month later, founder Do Kwon made his Twitter private.
It is unknown why Do Kwon made his account private. But the founder’s severe harassment over the past few weeks may have prompted him to make this decision.
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