ANCHOR

Anchor is a savings protocol offering low-volatile yields on Terra stablecoin deposits. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. We believe that a stable, reliable source of yield in Anchor has the opportunity to become the reference interest rate in crypto.

Anchor Protocol was founded in March 2021 by Terraform Labs, a South Korean fintech company founded by Daniel Shin and Do Kwon. Terraform Labs is also behind the Terra layer-one blockchain that has taken the DeFi space by storm, rising by 17,000% in 2021.

Before launching Terraform Labs, Mr. Kwon was CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. Moreover, he previously worked as a software engineer for Microsoft and Apple. Mr. Shin co-founded and headed Ticket Monster, a major South Korean e-commerce platform. He also co-founded Fast Track Asia, a startup incubator that helps entrepreneurs build fully functional companies.

Terraform Labs is one of the biggest and most in-demand companies in the cryptocurrency space and has raised $150m from major crypto investors like Arrington XRP Capital, Pantera Capital, Galaxy Digital, and BlockTower Capital.

Anchor is built on the Terra blockchain, a layer-1 blockchain using a delegated proof-of-stake consensus mechanism based on Tendermint. LUNA token holders can either stake tokens themselves to secure the network or delegate their tokens to other validators.

Anchor has also been audited a total of three times by Cryptonics and Solidified and found to be secure. The protocol offers a Bug Bounty Program with rewards between $500 and $150,000.

The ANC token is available as a native CW-20 token on Terra and as an ERC-20 token on Ethereum.

ANC is the protocol’s native governance token that can be staked to receive voting rights and influence Anchor's future. Its total supply is 1 billion, with a current circulating supply of 222 million. The ANC token is distributed as follows:

Borrower incentives (40%)

Investors (20%)

Team (10%)

Luna staking rewards (10%)

Community fund (10%)

ANC liquidity (5%)

Airdrops (5%)

Anchor is a savings protocol offering low-volatile yields on Terra stablecoin deposits. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. We believe that a stable, reliable source of yield in Anchor has the opportunity to become the reference interest rate in crypto.

Anchor Protocol was founded in March 2021 by Terraform Labs, a South Korean fintech company founded by Daniel Shin and Do Kwon. Terraform Labs is also behind the Terra layer-one blockchain that has taken the DeFi space by storm, rising by 17,000% in 2021.

Before launching Terraform Labs, Mr. Kwon was CEO of Anyfi, a startup providing decentralized wireless mesh networking solutions. Moreover, he previously worked as a software engineer for Microsoft and Apple. Mr. Shin co-founded and headed Ticket Monster, a major South Korean e-commerce platform. He also co-founded Fast Track Asia, a startup incubator that helps entrepreneurs build fully functional companies.

Terraform Labs is one of the biggest and most in-demand companies in the cryptocurrency space and has raised $150m from major crypto investors like Arrington XRP Capital, Pantera Capital, Galaxy Digital, and BlockTower Capital.

Anchor is built on the Terra blockchain, a layer-1 blockchain using a delegated proof-of-stake consensus mechanism based on Tendermint. LUNA token holders can either stake tokens themselves to secure the network or delegate their tokens to other validators.

Anchor has also been audited a total of three times by Cryptonics and Solidified and found to be secure. The protocol offers a Bug Bounty Program with rewards between $500 and $150,000.

The ANC token is available as a native CW-20 token on Terra and as an ERC-20 token on Ethereum.

ANC is the protocol’s native governance token that can be staked to receive voting rights and influence Anchor's future. Its total supply is 1 billion, with a current circulating supply of 222 million. The ANC token is distributed as follows:

Borrower incentives (40%)

Investors (20%)

Team (10%)

Luna staking rewards (10%)

Community fund (10%)

ANC liquidity (5%)

Airdrops (5%)

Despite the proliferation of financial products, DeFi has yet to produce a savings

product simple and safe enough to gain mass adoption. The price volatility of

most cryptoassets makes staking unfit for the vast majority of consumers. On the

other end of the spectrum, the cyclical nature of stablecoin interest rates on DeFi

staples like Maker and Compound makes those protocols ill-suited for a household

savings product. To address this pressing need we introduce Anchor, a savings

protocol on the Terra blockchain that offers yield powered by block rewards of major

Proof-of-Stake blockchains. Anchor offers a principal-protected stablecoin savings

product that pays depositors a stable interest rate. It achieves this by stabilizing

the deposit interest rate with block rewards accruing to assets that are used to borrow

stablecoins. Anchor will thus offer DeFi’s benchmark interest rate, determined by

the yield of the PoS blockchains with highest demand. Ultimately, we envision

Anchor to become the gold standard for passive income on the blockchain.

Anchor (www.anchorprotocol.com) is a savings protocol that offers low volatility returns on Terra’s stable currency deposits. The anchor rate is based on a diversified stream of participation rewards from leading proof-of-stake blockchains. Through these features, Anchor aims to be a platform with much more stable savings than money market interest rates.

Anchor Protocol’s most important features:

- High and stable deposit yields driven by the rewards of bAsset’s guarantees

- Instant withdrawals through combined lending of stable currency deposits

- Protection through liquidation of loans at risk of under-collateralization

- Open source and permission-free, any third-party application can connect and earn interest without restrictions.

- Developers can easily interact with Anchor with Anchor Earn, Anchor.js or EthAnchor.

Ecosystem

There are five types of participants in the Anchor ecosystem: depositors (lenders), borrowers, liquidators, ANC liquidity providers and, Oracle feeders.

Depositor (lender)

Lends stable Terra currencies to the Anchor money market, which are pooled and lent to borrowers, and the accrued interest is distributed proportionally to all depositors.

Borrower

Entities that create bAsset collateralized lending positions to borrow Terra stable currencies from the Anchor money market. By borrowing, users can gain access to liquidity without losing exposure to the price of their bAsset collateral. Anchor Protocol distributes Anchor Tokens as incentives for borrowers.

Liquidator

Monitors the existence of risky loans and requests liquidation of loan collateral if necessary. Collateral is settled by executing bids in the Settlement Agreement.

ANC Liquidity Provider

Entities that provide liquidity to the Terraswap ANC-UST Pair. They manage the initial start-up of swap liquidity between ANC and UST tokens.

Oracle Feeder

Terra account that is responsible for providing accurate and up-to-date pricing feed for bAsset collateral. They fundamentally serve to provide the necessary infrastructure.