Anchor -- DeFi’s First Inter-Chain, Fixed-Income Savings Protocol Launches on Terra

Share Article

Terraform Labs launches Anchor Protocol, a low-volatility, high-yield savings product on the Terra blockchain aiming to become the “Stripe for Savings” for mainstream users -- integrate and wield the power of DeFi with a few simple clicks.

Anchor’s attractive yields on TerraUSD is going to lead millions of households to move their savings onto Anchor’s smart contracts, and will bring DeFi from the fringe to the mainstream.

Terraform Labs (TFL), the company behind the Terra blockchain network has officially released the network’s 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. Anchor’s simplicity, novelty, and ease of integration bridge the gap between DeFi’s 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. “Anchor’s attractive yields on TerraUSD is going to lead millions of households to move their savings onto Anchor’s 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 Terra’s 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.

Anchor’s launch partner, the crypto exchange CoinList, has also integrated Anchor and will enable CoinList users to directly deposit UST into Anchor without leaving the exchange’s 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 blockchain’s consensus model to be unlocked by the staker and deployed as a derivative representing a claim on the staked position’s 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, Anchor’s 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 Terra’s 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 protocol’s native token, ANC, which captures a portion of Anchor’s yield and uses the generated revenue to buy back ANC on TerraSwap and disperse to ANC stakers -- scaling the token’s 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 DeFi’s 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 Terra’s native asset, LUNA, collateralizes a suite of fiat-pegged stablecoins that can be swapped in a multi-fiat forex market baked into the network’s 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 Terra’s 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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Kili Wall
Melrose PR
(310) 260-7901
Email >
Visit website