Terra’s Anchor Protocol (ANC) Opens Vote On Possible Cut To 20% Yield

Do repost and rate:

The Anchor Protocol (ANC), a Terra-based program that is currently one of the highest-yielding stablecoin platforms, opened a vote that could lower its nearly 20% annual returns. The community proposed a dynamic yield rate to help maintain the protocol’s reserves.

  • Early voting results are mixed
  • Terra founder expects yields to turn dynamic
  • Second vote on Anchor yields this month.

The vote, which opened late on Friday, seeks to set up a semi-dynamic yield rate based on fluctuations in the protocol’s reserves. ANC offers a near 20% return on deposits of TerraUSD (UST). While yields are usually funded through interest payments from UST borrowers, the extremely high ratio of depositors to lenders has caused the protocol to fund yield payments from its reserves.

Deposits are nearly four times as much as borrowings on the platform. Compared to total deposits of over 10 billion UST ($10 billion), the yield reserve is about 417 million UST.

Given the high amount deposits, it is likely that the proposal, if approved, will bring down the yield.

Currently, about 2% of total ANC holders have voted, with a slightly higher number of voters being against the proposal. The vote will be open till March 23, and will require participation by at least 10% of total ANC holders to be considered.

Terra founder expects ANC yields to turn dynamic

Today’s vote marks the second time this month that the community has voted on reducing yields. The first time was on a proposal by Polychain Capital and Arca Prop, which had sought to trim rates by up to 50% based on the size of UST deposits. The proposal was overwhelmingly rejected by ANC holders.

Sentiment towards the current vote appears to be a lot more mixed. Terra founder Do Kown (@stablekwon) has said that the ANC rate will likely adjust to something more dynamic, albeit at “lunatic” terms.

ANC has among the highest yields in DeFi

The protocol has seen a large influx in depositors due to its 20% annual return rate- currently among the highest yields offered by a stablecoin. In comparison, yields on top stablecoins including Tether, USD Coin and BINANCE USD go up to 12%.

This increased demand has supported the price of ANC’s governance token, as well as Terra’s native token LUNA, which can be used to stake on the protocol. Both tokens are up about

The recent influx of deposits had also spurred moves by the Terra community to bolster ANC’s reserves, including a $1 billion capital raise, as well as LUNA burning.

  • Trending
  • Price Analysis
  • Terra’s Anchor Protocol (ANC) Opens Vote On Possible Cut To 20% Yield
  • Ripple Vs SEC: SEC Files Opposition To Ripple’s Motion Citing These Three Reasons
  • Ethereum Whale Transactions Pick Up As ETH Approaches $3000
  • Russia-Ukraine Conflict Pushes Bitcoin Mining Difficulty Down; Pantera Capital CEO Predicts BTC Price At $400k by 2025
  • ?Mike Novogratz Believes Rising Inflation Will Boost Bitcoin Adoption
  • Thorchain’s RUNE Appreciates 170% and DeFi TVL Grows 100% Over Last Month, Here’s Why
  • AAVE Gains 30% In Two Days With V3 Protocol Launch and Strong Whale Accumulation
  • Amid Sanctions, Russia’s Sberbank Secures License to Issue Digital Assets
  • Just-In: Ethereum L2 Protocol Optimism Raises $150 Million In Series B
  • Just-In: ?Bitcoin Miners Are On Accumulation Spree Amid Crypto Crash Concerns
  • XRP Price Prediction: Flag Formation Awaits A Bullish Breakout Above $0.80
  • LUNA Price Prediction: Challenges 0.23% Fibonacci Retracement Level At $87.0; RSI Divergence Indicates $80.0 On The Way
  • Sandbox Price Prediction: SAND Price Must Breakout From This Daily Descending Trendline
  • AVAX Price Prediction: Advances Toward $90.0; Making A Way To Retest $100
  • Ethereum Price Prediction: Sits At One Week High Near $2,780; Road To $3,200 Clear Now?
  • ADA Price Prediction: A Breakout Above $0.85 Make Or Break Movement; Is $0.95 Next?
  • GALA Price Analysis: Will GALA Buyers Surpass the 20-Day EMA?
  • MANA Price Prediction: MANA Price Teases Wedge Pattern Breakout; Is $0.28 Next?
  • Ethereum Price Prediction: Approaches 50-day EMA At $2,820; More Gains Near $3,200 Next
  • SHIB Price Prediction: SHIB Price To Revisit January Bottom Support $0.00002; Buy The Dip?
Crypto StoriesView all
Ethereum founder compares BAYC NFT collection with gambling
APE-Cover-1
Crypto exchange Binance announces to list ApeCoin starting today
Warren Buffet vs SBF: Crypto frenzy era takes over traditional business

Regulation and Society adoption

Ждем новостей

Нет новых страниц

Следующая новость