I will go into an explanation on Anchor Protocol Bonding and Burning in this article. You should also review Anchor Protocol Documentation at https://docs.anchorprotocol.com/. You may want to also review my last article on Anchor https://www.publish0x.com/crytpo-adventure-by-ira/anchor-protocol-on-terra-network-part-1-comparison-of-approa-xjomqgr.
1) Anchor Bond / Mint - https://app.anchorprotocol.com/bond/mint
In order to take a loan on Anchor you need to provide collateral. In Anchor today that is providing Luna to the Bond portion of the Anchor Protocol. It will Bond the Luna tokens via smart contract and generate bLuna tokens which are used as collateral to borrow Terra stablecoins from Anchor. The protocol can then use the provided LUNA to Terra Staking and earn those rewards for use by the protocol while the collateral is provided. Because of this staking, you are asked to select from a curated list of Validators.
2) Anchor Bond / Burn - https://app.anchorprotocol.com/bond/burn
Burning is the process to decollaterize your Luna as long as they are not being used as collateral. Any bLuna holder can redeem their tokens for their underlying Luna. Redemption is a two-step process; 1) requesting to unbond bLuna and 2) withdrawing undelegated Luna. The Terra blockchains unbinding period is related to the 21 day unstaking process and therefore a complete redemption cycle normally requires at least 21 days to finish. Since redemptions occur in 3 day batches it may take up to 24 days. If your prefer not to perform/ wait for a regular burn, you may perform an instant Burn and receive a reduced quantity of Luna. As of time writing this:
Normal Burn 1 – bLuna = 1.000007 Luna
Instant Burn 1 – bLuna = 0.99215 Luna
3) Anchor Bond / Claim - https://app.anchorprotocol.com/bond/claim
Claim is used to withdrawal your luna after the regular 21-24 day Burn has elapsed.
4) Alternative to Mint / Burn use TerraSwap -https://app.terraswap.io/#Swap
Because of choice of instant burn at reduced rate or waiting 21-24 days, many users prefer to sell their bLuna using Terraswap. They receive better rates and the buyers also receive more bluna the Minting it themseves.
