What is the anchor protocol? What does ANC do?
What is the anchor protocol? The Anchor Protocol is a lending protocol that offers high interest yields on stablecoin deposits. In this article you will find answers to questions that investors ask themselves, e.g. B. What is the anchor protocol, what does ANC do? As Kriptokoin.com we have put it together for you. Let’s examine the log together.
What is the anchor protocol?
Anchor Protocol is a stablecoin deposit protocol running on Terra Blockchain. The protocol allows users to 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. Financial users who lend their stablecoin wealth 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.
Therefore, 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 demand for UST. As a result, adoption of UST as a stablecoin is increasing and the Terra project is growing stronger in the DeFi space. In this respect, the anchor price depends on the Terra Blockchain and the price of the LUNA. Anchor’s founders are the same as Terra’s. 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 its high interest income. Also important is that it works on another network like Terra Blockchain. As is known, many DeFi projects are working on Ethereum. Also, the protocol has a very user-friendly and simple interface. Furthermore, unlike other DeFi projects, the project has no minimum investment, account blocking, or registration requirements. All users worldwide can generate income from their assets without any preconditions.
What is ANC? what does it do
ANC is the native cryptocurrency of the Anchor protocol. 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 and powered by a Proof-of-Stake (PoS) mechanism based on Tendermint. Therefore, users can become validators within Anchor by using their ANC assets. Authenticator is the name given to users who verify transactions on PoS blockchains. ANC holders can lock their assets in protocol smart contracts, verify transactions and thereby earn token rewards. So it is possible to earn passive income with ANC.
Another important function of the token is reflected in the governance of Anchor. Anchor, like most blockchain projects, is decentralized. By being deployed, the platform is governed by its community and the only way to join the community is by having an ANC. Thus, ANC holders can participate in the management of the platform by burning their tokens and voting on the decisions made.
What is the anchor protocol? How do I get ANC?
ANC coin; It is listed by Binance, KuCoin, OKX, Gate.io and Mandala Exchange. Investors wishing to buy ANC must be a member of one of these exchanges. After that, they need to verify their accounts by following the steps of the exchange and load an asset suitable for ANC couples into their wallet. Users who perform all these operations can purchase ANC.