What is Anchor Protocol? Anchor Protocol is a lending protocol that offers high interest yields on stablecoin deposits. In this article, you can find answers to questions that investors wonder, such as what is the Anchor Protocol, what does ANC do. As Kriptokoin.com, we have compiled it for you. Let’s examine the protocol together.
What is Anchor Protocol?
Anchor Protocol is a stablecoin deposit protocol running on Terra Blockchain. Through the protocol, users can lend and borrow the stablecoins they want to other users. The main feature of the decentralized finance (DeFi) protocol is the high interest rates it offers. Accordingly, users who lend their stablecoin assets can earn interest rates of up to 20% annually. Thus, borrowers have the opportunity to convert their LUNA collateral into productive assets without selling or burning them.
Thus, Anchor aims to be a DeFi platform that offers users high returns and low volatility. In this way, the project can attract investors and increase the demand for UST. As a result, the adoption of UST as a stablecoin increases and the Terra project grows more in the DeFi space. In this respect, the Anchor price depends on the Terra Blockchain and the price of the LUNA. The founders of Anchor are the same as those of Terra. Anchor Protocol was founded in March 2021 by Daniel Shin and Do Kwon, who also founded Terraform Labs.
What makes Anchor unique?
Anchor Protocol has attracted attention with the high interest income it offers. It is also important that it works on a different network such as Terra Blockchain. As it is known, many DeFi projects are working on Ethereum. Besides, the protocol has a very user-friendly and simple interface. Additionally, the project has no minimum investment, account freeze or registration requirements unlike other DeFi projects. All users worldwide can generate income from their assets without any preconditions.
What is ANC? What does it do?
ANC is Anchor Protocol’s native cryptocurrency. There are two versions of the token, CW-20 in the Terra ecosystem and ERC-20 in the Ethereum network. Anchor is built on the Terra ecosystem, powered by a Proof-of-Stake (PoS) mechanism based on Tendermint. Therefore, within Anchor, users can become validators by staking their ANC assets. Authenticator is the name given to users who verify transactions on PoS blockchains. Accordingly, ANC holders can lock their assets in smart contracts of the protocol, verifying transactions and earning token rewards as a result. So, it is possible to earn passive income with ANC.
Another important function of the token manifests itself in Anchor’s governance. Anchor, like most blockchain projects, is decentralized. Accordingly, the platform is managed by its community and the only way to join the community is to have an ANC. Thus, ANC holders can participate in the management of the platform by burning their tokens and vote on the decisions taken.
What is Anchor Protocol? How to get ANC?
ANC coin; It is listed by Binance, KuCoin, OKX, Gate.io, and Mandala Exchange. Investors wishing to purchase ANC must be a member of one of these exchanges. After that, they must verify their accounts by following the steps of the exchange and load an asset suitable for ANC pairs into their wallet. Users who perform all these operations can purchase ANC.
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