WHAT IS ANCHOR?
Imagine earning a 20% yearly return on every dollar you have saved.
Well you don't have to imagine anymore.
ANCHOR is here
ANCHOR is a savings app built on the Terra Blockchain
Designed to give you a reliable high fixed yield on your stablecoins
Cryptocurrency, blockchain, stablecoins.. how's it all work?
You deposit Terra stablecoin, UST, which is pegged 1:1 to the US Dollar. The UST is lent out to borrowers.
The borrowers have to deposit collateral that is usually 2-3x the amount of the UST they are borrowing.
The collateral is used to stake the Terra blockchain.
The staking secures the network transactions and earns fees, that are then passed on to you the lender, as yield.
Three Simple Steps to Start Earning 20%
1. Buy TerraUSD (UST)
2. Make a Terra Wallet
No minimum balances and no hidden fees.
Available to everyone worldwide.
Just deposit, earn, and never use a bank again.
Welcome to the future of finance.
WELCOME TO ANCHOR
What is Terra Blockchain?
Terra is a blockchain protocol that supports stable programmable payments and open financial infrastructure development. To get get more technical, it's a decentralized Proof of Stake(PoS) blockchain built on Cosmos. To learn more check out their official user guide. Also check out this simple video 'How Does Terra Work?'
How does TerraUSD (UST) stay stable or keep its peg to the US Dollar?
'"When there is a high demand for Terra USD, UST will be trading at above a dollar. Terra will increase new supply of UST to bring down the price back to a dollar. Vice versa, if demand for Terra USD falls, the protocol buys back Terra to reduce supply and bring prices back up. The elastic supply model expands and contracts based on demand and arbitrage opportunities will incentivize the price to be at US $1." - great explanation post by The Babylonians. UST is one of the few algorithmic stable coins to keep its $1 peg according to data by CoinGecko.
What makes UST different from other stablecoins?
It's a non-collatelarized or algorithmic stable coin. Compared to other well known stable coins such as USDT and USDC, which are fiat backed stablecoins or DAI, which is a crypto collateralized stablecoin. This post again sums the differences nicely.
In addition, all the above coins are built on Ethereum, which currently has slow transfers and high transaction fees to send the coins because it can only process so many transactions per second (tps). Terra blockchain has low fees and a much higher tps.
What is Luna?
Luna is the native staking and governance token on the Terra blockchain. It is designed to capture value from the activity taking place on blockchain. Well activity taking place is due to transactions that people use UST for.
If there is a growing demand for UST, the only way to create more UST is by minting a new supply of UST, and in order to mint you have to burn LUNA and swap them to UST. Likewise, if you want to mint LUNA, UST is bought back and burned. As Do Kwon, the co founder of Terra, puts it: 'The mechanism is quite simple: When Terra supply goes up, Luna supply goes down. When Terra supply goes down, Luna supply goes up.'
How does Anchor give me a fixed 20%? Other crypto platforms give me a lower or variable rate.
For a generalized overview of where high-yields actually come from when people borrow and lend cryptocurrencies, check out this podcast by Uncommon Core.
For Anchor: "Anchor lets you borrow stablecoins against your stake. Instead of charging explicit borrowing rates, the system passes on your staking rewards to lenders. With Luna staking yield at 12% p.a. and LTV at 50%, this means that the system is able to generate at least 24% staking revenue on deposits – more than enough to cover the 20%" from this informative post by Staking Rewards,
I'm a visual learner, are there any video tutorials?
Yes there are plenty of these
How to Earn 20% USD on Anchor by Every Bit HelpsHow to get 20% APY with Anchor by Bobby VD
If you want more in-depth videos on how to earn as well as borrow
Anchor Tutorial: 4 DeFi Strategies to Farm ANC & UST by Terra Bites PodTerra and Anchor, Part 2 by Nacho
What can I read more in depth?
Are there other ways to get UST besides the above?
Yes. If you're not able to buy UST (not available on MoonPay in the USA) or if you already have a cryptocurrency account at an exchange, you can buy Luna and swap for it for UST.
You can buy Luna directly from Chainbits with a bank account or debit/credit card. Make sure to have your Terra Station wallet set up.
Of course you can also buy Luna from your exchange such as Upbit, Binance, OKEX, and others.
Once you have Luna and have it sent to your Terra Station Wallet, you can go to the swap page and exchange Luna for UST.
Is there a Telegram or Discord where I can ask questions?
This site is not endorsed by Terraform Labs. We are community members and #LUNAtics who advocate for the Luna and Terra cryptocurrencies and Anchor Protocol. None of this information is investment advice, please do your own research. Reach out to @shaketime on Twitter with any questions or to help keep this up to date.