What is Anchor Protocol (ANC)? Learn the details from A to Z about the ANC . coin
In the past February 2022, in the midst of a volatile market, there was a coin that always had extremely steady and strong growth. That is ANC - the virtual currency of the Anchor Protocol project. So what is Anchor Protocol? Information about ANC virtual currency? Today, Hay Mod Game will learn about this Anchor Protocol project with you!
What is Anchor Protocol?
Anchor Protocol is a Lending array protocol on the Terra Blockchain that offers low volatility interest rates based on StableCoin Terra (UST) deposits. Accordingly, brethren depositing money into Anchor Protocol will be able to receive high, stable interest rates, instant withdrawals and protection of principal or borrow money from the platform at attractive interest rates. Anchor Protocol interest is backed by a diverse range of Staking Rewards from Proof Of Stake Blockchains. Therefore, you can fully expect that the project's interest rate will be much more stable than the money market interest rate.
What is Anchor Protocol?The Anchor protocol makes up the marketplace consisting of their StableCoin lenders and StableCoin borrowers, based on collateral. To be able to borrow StableCoin, borrowers must lock Bonded Assets (bAssets) as collateral and borrow StableCoin under the LTV rate determined by Anchor. Currently Anchor only supports LUNA.
An accumulated amount of Staking Reward is sent to the Collateral Pools and converted to StableCoin. It will then be given to the borrower as a steady income.
The deposited stablecoins are represented by Anchor Terra (aTerra). aTerra tokens exchange to initial deposit + accrued interest, this allows by holding the asset. Anchor is structured to provide depositors with:
- Stable, high deposit yields backed by rewards of bAsset . collateral
- Instant withdrawals through pooled lending of stablecoin deposits
- Protection of principal through liquidation of loans at risk of underfinance
Anchor is also an open protocol that allows third parties to connect and earn interest. Through Anchor.js or EthAnchor, developers can interact with Anchor with just a few lines of code and at no cost.
Simply put, Anchor Protocol can be seen as a traditional bank in the Crypto world, users can deposit Stablecoins (UST) and receive a fixed interest rate (Fixed rate), as well as lend money to brothers and sisters. deposit collateral.
Components of the Anchor Protocol
- Bonded Assets: Tokenized assets of PoS assets. For example, key LUNA to aLUNA.
- Money Market: Protocol for lending and borrowing of Terra StableCoins with collateral by bAssets.
- Liquidation Contract: Liquidity management for assets with weak liquidity. If the collateral goes below TLV then the protocol works.
- Anchor Token Contract: Handle related platform operations such as reward, burning, airdrop and others.
Anchor Protocol ecosystem participants
The components participating in Anchor's ecosystem include:
- Depositors (lenders);
- Borrowers;
- The liquidator;
- ANC liquidity provider;
- Anchor Protocol also requires an Oracle data set. This is important to provide the necessary infrastructure.
The model works as follows:
How Anchor Protocol works?
Anchor Protocol uses various forms of Staking Yields, Money Market and incentive mechanism by ANC Token. Anchor Protocol creates a decentralized passive income mechanism:
- Anchor's interest rate is managed and set, the parameter is voted by a large number of admin ANC Token holders to set.
- Staking Rewards mechanism creates real Yields interest: Inside the shell, Anchor implements the traditional money market, Staking LUNA Token that makes up Liquid Staking is bLUNA. This is a derivative of the liquid LUNA. Collateral earned by Staking Rewards, generating real profit.
- The Yield real interest rate is stable around the Anchor set rate. Reserves and borrowing preferences keep the real interest rate close to the one set by Anchor:
- If Actual Yield > Anchor Ratio is set, the excess staking reward will be stored in an amount of UST as the “reserve of profit”. ANC offers loan customers a 15% discount per epoch (week).
- If Actual Yield < Set Anchor's Rate, the shortfall in profit will be drawn from the profit reserve in the upper part until exhausted. Additionally, ANC's offers to borrowers increase by 50% per epoch (week) until the real yield converges with the Anchor Rate.
Anchor Protocol (ANC) products
- TerraStation : Is a collection of App Defi including Wallet, Swap, Staking.
- Anchor Web App : Is a Defi App suite including Borrowing, Lending, Bonding.
- TerraSwap AMM DEX : An AMM exchange.
From the above products, you can also see that Anchor Protocol, Terra Stablecoin are trying to develop LUNA's blockchain ecosystem with core DeFi products to encourage users.
Highlights of Anchor Protocol (ANC)
Anchor Protocol promotes the use of UST - StableCoin by the entire Terra ecosystem from attractive interest rates. From there, aim to increase the demand of LUNA Token to help the whole ecosystem go up. Outstanding applications of Anchor Protocol are as follows:
- Receive interest: Users deposit UST, receive a fixed interest rate, this future interest rate will be changed based on the governance mechanism.
- Borrowing Stablecoins: Users deposit collateral assets into Anchor Protocol (currently only accepting bLUNA – received when Stake LUNA). Then will be borrowed with LTV 50%, that is, 100$ worth of LUNA can only borrow $50 UST.
The mechanism of the above two applications is as follows: When sending collateral, the project will take this asset to Stake, the profit of Stake will be divided into 2 parts: Project & UST depositor receive interest. For example: The interest rate is 26%, the project will receive 6%, the UST depositor will receive 20%.
What is ANC Token?
Anchor Token (ANC) is the governance token of the Anchor Protocol platform. ANC is designed to capture a portion of Anchor Protocol's Yield profits. This allows its value to scale linearly with the assets under management (AUM). Anchor distributes protocol fees to ANC makers according to their stake, benefiting distributors as Anchor adoption increases. ANC makers are encouraged to propose, discuss, and vote on worthy proposals further contributing to the development of the protocol.
ANC tokens are also used as incentives to support loan demand and stabilize initial deposit interest rates. The protocol distributes ANC tokens per block to stablecoin borrowers, proportional to the amount borrowed.
Basic information about ANC Token
- Token Name: ANC Token.
- Ticker: ANC.
- Blockchain: Terra
- Token Standard: CW-20
- Contract: 0x8290333cef9e6d528dd5618fb97a76f268f3edd4
- Token Type: Utility, Governance.
- Total Supply: 1,000,000,000 ANC.
- Circulating Supply: 262,846,022 ANC.
ANC Token Allocation
- Borrower Incentives: 40%
- Investors: 20%
- LUNA Staking Reward & Airdrop: 15%
- Team: 10%
- Community Fund: 10%
- ANC LP: 5%
ANC Token Sale
The project has called for $20M from famous investors.
- Pre-sale price: $0.1/ANC.
- Initial floor listing price: $0.05/ANC (pair ANC/UST).
ANC Token Release Schedule
- Investors: Lock for 6 months, then pay in installments for 1 year.
- Team: Pay in 4 years, receive tokens at the end of each year.
ANC Token Use Case
- Share fee: ANC holders will receive the transaction fee collected from the project.
- Governance: Allows users the ability to participate in project administration.
Anchor Protocol project team, investors & partners
Project team
Updating
Investors
The project is supported by big names in Crypto such as Alameda Research, Dragonfly Capital, Delphi Digital, Defi Alliance…
Partner
Lido Finance : The project provides Liquid Staking bETH, bLUNA,… for Anchor Protocol.
How to earn and own ANC Token
- Stake LUNA receives Airdrop.
- Provide ANC/UST liquidity.
- Deposit UST into Anchor Protocol to receive interest.
- Become a borrower.
- Buy after listing the floor.
ANC Token storage wallet
ANC is a Terra token, currently you can store it on Terra Station.
Exchange ANC Token
Currently, you can buy ANC at Terraswap, Kucoin, …
Through this article, you must have had your own opinions about the Anchor Protocol project as well as the ANC virtual currency. Hay Mod Game is not responsible for any of your investment decisions. But Hay Mod Game will support you all to understand the basic information and succeed in this extremely potential market!