en
Back to the list

Anchor Protocol (ANC) Price Rebounds, Surges 15% in Last 24 Hours

Altcoins

thenewscrypto.com 08 March 2022 08:16, UTC
  
Reading time: ~2 m

  • The protocol continually burns ANC to support its price while issuing ANC tokens.
  • Investors in Terra’s dollar-pegged stablecoin may earn a steady 20% APY.

The Terra blockchain-based decentralized finance (DeFi) platform Anchor Protocol (ANC) has recovered approximately 300% in over a month after hitting a low of $1.26. At $4.97 on March 3, 2022, the price of ANC had risen past the previous high, which was about $4.50, set on December 3 of the last year.

As a result, the ‘crypto winter’ losses that began in Q4/2021 and were attributed to the Federal Reserve’s aggressive rate rises were erased by the Anchor Protocol.

20% APY on ANC Deposits

Using the Anchor Protocol’s decentralized money market, investors in Terra’s dollar-pegged stablecoin may earn a steady 20 percent annual percentage yield (APY) on their ANC deposits. Additionally, borrowers may use bonded LUNA (bLUNA) to collateralize UST loans.

ANC/USDT: Source: TradingView

The rising volatility in the crypto market has undoubtedly attracted traders because of the yield of 20%. The protocol continually burns ANC to support its price while issuing ANC tokens as incentives for Anchor depositors. In the previous 30 days, the value of another UST-linked coin, LUNA, has risen by 79%, according to CoinMarketCap.

Thus, demand for UST is created, which promises to reduce the supply of LUNA tokens. When UST’s value increases beyond $1 owing to Terra’s economic model, users are incentivized to mint it by burning the LUNA supply. After a 15 percent rise in the previous 24 hours due to traders looking to get exposure to Anchor protocol’s relatively high return, its token price (ANC) has avoided a drop in the crypto market. 


   Source
Back to the list

Similar news
Suggest news


DeFi
Anchor became the largest lending DeFi protocol beating Aave
www.thecoinrepublic.com09 March 2022 00:31, UTC