### What is Anchor Protocol?

Anchor Protocol is a decentralised savings platform based on the Terra blockchain that offers stable, high-yield returns on deposits of Terra stablecoins. It provides stablecoin holders the opportunity to earn interest by acting as a bridge between lenders and borrowers in the crypto ecosystem.

### How does Anchor Protocol work?

Anchor Protocol functions by using a combination of smart contracts on the Terra blockchain and a system of bonded assets (bAssets), which are liquid tokens convertible to staked assets. The protocol employs automated algorithms to manage interest rates based on the demand for borrowing and the supply of deposits. It aims to deliver stable, attractive yields by utilising a diversified stream of staking rewards from the PoS blockchains.

### What are the potential use cases for Anchor Protocol?

Anchor Protocol's use cases include decentralised lending and borrowing, stablecoin-based savings offering high interest rates, governance participation through its ANC token, and collateralised lending using bonded assets. It also facilitates interactions within the Terra ecosystem and partnerships with other DeFi platforms, broadening its application scope.

### What is the history of Anchor Protocol?

Anchor Protocol was launched on 17 March 2021 by Terraform Labs, founded by Do Kwon and Daniel Shin. It was designed to complement the Terra ecosystem by providing a mechanism for stable, high-yield savings on Terra stablecoins. Despite reaching a peak in total value locked (TVL), the protocol faced challenges following the collapse of the algorithmic stablecoin TerraUSD (UST) and LUNA in May 2022, leading to significant disruptions and a subsequent chain fork into Terra Classic and a new Terra chain without the former algorithmic stablecoin structure.

Anchor Protocol

Lido Staked Ether

Wrapped stETH

Uniswap

Aave

MANTRA

Injective

Rocket Pool ETH

THORChain

Lido DAO

Raydium

Maker

NEXO

Curve DAO

Venus BTC

Pendle

DeXe

PancakeSwap

Compound

Synthetix Network

Anchor Protocol (ANC)

Similar Coins

STETH

WSTETH

UNI

AAVE

DAI

OM

INJ

RETH

RUNE

LDO

RAY

MKR

NEXO

CRV

VBTC

PENDLE

DEXE

CAKE

COMP

SNX

Resources

Anchor Protocol (ANC) Price Index

Anchor Protocol Price

Trading volume

Market cap

Resources