Basis Coin Makes a Comeback! Savings Protocol Anchor ANC Officially Launched, How to Achieve a 20% Fixed Interest Rate?

The fixed-rate agreement Anchor Protocol ANC was scheduled to go live at 4 p.m. today, despite being delayed by an hour due to a DDOS attack. The development team, Terraform Labs, co-founded by the founders, still announced its official launch.

What is Anchor Protocol

As reported as early as July last year, Anchor is a fixed-rate savings protocol created by the Terra Money team, Terra LUNA, and can be easily understood as a DeFi lending protocol that combines collateral mechanisms. In the Anchor system, the principles for borrowers and lenders are as follows:

Borrowers

Borrowers can collateralize assets called bAssets to borrow, and in return, they receive ANC rewards. Since borrowers sacrifice collateral rewards to borrow, their borrowing rates may be as low as zero.

Lenders - Savings Users

Initially, lenders receive a 20% interest rate, which can be adjusted through governance. As mentioned by the borrowers' principles, the collateral assets provided by borrowers in the Anchor system generate collateral returns, which can then be used as savings interest for lenders.

Initially, Anchor only accepts collateral in the form of bLUNA from the LUNA system, but will later expand to other PoS blockchains, including Ethereum, Polkadot, Cosmos, and Solana. According to the official website, its main features include:

• Capital protection mechanism: Collateral from borrowers may be liquidated when necessary to protect lenders' principal
• Instant withdrawals: Deposits can be withdrawn at any time without a lock-up period
• Fixed interest rates: Aim to achieve stable rates through block rewards from multiple PoS chains

Anchor Token (ANC)

The total supply of ANC tokens is 1 billion, with the token distribution as follows:

• 400 million: Borrower rewards
• 200 million: Private investors with a 6-month lock-up, followed by linear unlocking over one year
• 100 million: Community fund
• 100 million: Development team, distributed at the year-end over four years
• 100 million: LUNA collateral rewards, distributed weekly over two years
• 50 million: ANC - UST liquidity mining rewards
• 50 million: Genesis issuance airdrop to LUNA stakers

Strong Performance of LUNA

Currently, ANC tokens are listed on Terraswap, Terra Station desktop version, Anchorprotocol web version, and also on OKEx. The public offering price was $0.05, but as of the deadline, it has reached $3.5 and surpassed $4 on OKEx.

Although LUNA has experienced a slight pullback, its increase since March is close to an astonishing 300%. Starting at just $5 at the beginning of the month, it hit a historical high of $20.8 on 3/16, and is currently at $18.1.