Anchor adds sAVAX as collateral asset, Terra founder: DAI will die in my hands

The important protocol in the Terra ecosystem, the fixed income platform Anchor Protocol, has adopted the native token AVAX of the Avalanche blockchain as collateral. This allows users to collateralize assets in both Terra and Avalanche to borrow UST using the sAVAX tokens.

Borrowing UST with Benqi Collateral

Benqi, the third-largest locked asset protocol on Avalanche, allows users to pledge AVAX tokens to receive liquidity certificates sAVAX. Users can directly borrow the stablecoin UST on the Avalanche chain using sAVAX, or borrow UST by packaging Terra's version of sAVAX, wasAVAX, through the cross-chain bridge Wormhole. Moreover, Anchor also hinted at the possibility of adding ATOM to the collateral asset lineup, and the proposal is currently underway.

As of the deadline, the annualized yield for pledging UST still stands at 19.4%.

Terra Founder: "DAI Will Die in My Hands"

On the same day as Anchor's announcement, Terra founder Do Kwon stated in a tweet "DAI will die in my hands." DAI sounds similar to "Die."

Terra produces the algorithmic stablecoin UST through the burning and minting mechanism of LUNA, and in conjunction with the fixed-income platform Anchor Protocol, allows users pledging UST to earn nearly 20% in fixed stablecoin returns. The market value of UST continues to grow, surpassing the market value of the veteran stablecoin DAI by a significant margin, ranking fourth and trailing only mainstream stablecoins backed by assets.