Anchor dev claims he warned Do Kwon over unsustainable 20% interest rate
Mr. B alleges that the platform was designed to only offer an interest rate of 3.6%, but that changed at the last minute. Anchor protocol was originally designed to offer an interest rate of 3.6% but this was dialed up to 20% just a week before release to attract more investors, a core developer alleged in an interview with Korean media outlet JTBC. “I did not know that this would go out with such a high-interest rate. Set to 20% just a week before the release,” said the employee, referred to only as Mr. B in the Korean-language report. “I thought I was going to collapse from the....
Related News
The Wu blockchain took to Twitter, explaining that the initial interest rate of the Anchor protocol was initially 3.6% until Do Kwon rejected it. Then, the Terra founder bumped the interest rate to 20% one week before deployment. According to the report, Do Kwon, Terraform Labs Co-Founder and CEO decided the price to be at […]
Yields from Terra's flagship savings protocol will be available to more than 30 million users on Binance. On Wednesday, centralized cryptocurrency exchange Binance launched its new TerraUSD (UST) staking program. Although Binance did not name the underlying decentralized finance protocol responsible for the staking rewards, Do Kwon — Terra Luna's (LUNA) co-founder — attributed the origins of the high yield to Terra's flagship Anchor protocol. Anchor rate is now available to 30M+ binance users The anchor yield of web3 is living up to its name. https://t.co/awubGdRJgP— Do Kwon (@stablekwon)....
Following the governance vote that aimed to implement a semi-dynamic earn rate for the Anchor Protocol, the decentralized finance (defi) platform’s earn rate adjusted downward for the first time this month. After holding steady with a 19.4% annual percentage yield (APY) since the project started, Anchor Protocol’s earn rate is now roughly 18% APY for the month of May. Defi Lending Protocol Anchor’s Earn Rate Adjusts Downward The lending platform Anchor Protocol is the third-largest defi protocol today with $16.5 billion total value locked (TVL). Statistics show that....
With too many depositors chasing high yields and a lack of borrowers, Anchor interest rates appear to have become unsustainable. Anchor, the flagship savings protocol of the Terra Luna (LUNA) ecosystem, has seen its reserves decline by 35.7% in the past seven days, according to Terra.Engineer. Since the beginning of December, the amount of Terra USD Stablecoin (UST) held in the "terra1tmnqgvg567ypvsvk6rwsga3srp7e3lg6u0elp8" smart contract has declined by over 50%, with only $35.7 million remaining.As a savings protocol, users deposit their UST assets via their wallets and earn up to 20%....
Anchor Protocol, one of the most popular platforms in the Terra ecosystem, rolled out a change in its Earn Rate. The latter will begin to operate in a semi-dynamic fashion rather than the previously fixed 20% annual percentage yield (APY). Related Reading | Terra Price Continues Moving North; How Soon Will It Cross $100? With a massive shift in the protocol’s reward mechanism, the new models aim at making Anchor “more sustainable”. As a result, users started earning an 18% APY as of yesterday, May 1. The earn rate will be modified each month for the foreseeable future. The team....