Resurrecting The Saver: Walking Tall With Anchor

March 17, 2021 Ninor Mansor

The DeFi Standard For Crypto-Native Fixed Income

The macro storm of quantitative easing and record low interest rates has depressed yields in traditionalfinance beyond measure. Anchor is the first protocol in Decentralized Finance (DeFi) designed to capturethe growth of the cryptocurrency ecosystem to offer savers fixed income yield.

The Anchor Protocol is a money market built on the Terra blockchain, leveraging the only stream ofunlevered, reliable yield in cryptocurrency: Proof-of-Stake (PoS) block rewards. Anchor synthesises DeFiyield with PoS rewards, creating a fundamentally new economic primitive – the Anchor Rate – providinglenders a stable rate of return. In time, we believe the Anchor Rate will become the reference rate forDeFi investment – a Decentralized Funds Rate – and eventually the gold standard for passive income onthe blockchain.

Anchor launches with LUNA as the initial primary collateral asset for borrowers, with a roadmap to integrate other PoS assets including DOT, ATOM and SOL, and decentralize ownership of the ANC governance token through a liquidity mining program.