What is the Future of Anchor Protocol in this guide? We will answer questions such as who created it, what is its features and project.
Seoul-based company Terraform Labs has launched Anchor Protocol, the anticipated lending and savings protocol, which it expects to boost demand for the TerraUSD (UST) stablecoin, which aims to surpass DAI circulation.
The native token of Anchor Protocol is ANC. ANC can be used to create new management polls that can be voted on by staking users.
To increase the attractiveness of stablecoin, Anchor Protocol strives to deliver returns that outperform other Decentralized Finance (DeFi) offerings by balancing net profitability and predictability. According to the developers, this will come from verification rewards from Terra’s own blockchain, but eventually such rewards will be integrated from other chains as well. If Anchor Protocol gains momentum, it could become a strong player in the DeFi space and will expand beyond Ethereum.
What is ANC Token?
ANC Token is designed to capture some of Anchor’s return, allowing its value to scale linearly with Anchor’s assets under management (AUM). Anchor Protocol distributes its fees to ANC shareholders proportionally, benefiting shareholders as Anchor adoption grows. ANC’s stakeholders are encouraged to propose, discuss and vote on proposals that further merit the protocol.
ANC is also used as incentives to preload borrowing demand and initial deposit rate stability. The protocol distributes ANC tokens to stablecoin borrowers every block in proportion to the amount borrowed.
ANC Token Features
ANC creates buying pressure that increases in proportion to Anchor’s AUM. Protocol fees are used to purchase ANC tokens from Terraswap, which are then distributed to ANC stakers as rewards for staking.
A portion of the rewards from deposited bAsset collateral is used to purchase ANC. The rest is used to replenish the yield reserve. The proportion of bAsset rewards used for ANC purchases can be adjusted extensively by management if the inventory of the yield reserve rises to a sufficient level. When a loan is liquidated, 1% of the liquidated collateral value is sent to the yield reserve. And some of that is used to buy ANC. This fee is applied separately from the bid premiums.
Who Are the Founders of Anchor Protocol?
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.
How Many ANC Coins Are There in Circulation?
- Market Cap: $63,065,539 (16 May, 2022)
- Circulating Supply: 346.255.491 ANC
- Total Supply: 1.000.000.000 ANC
- Max Supply: 1.000.000.000 ANC
- All Time High: (Mar 19, 2021) $8.31
- All Time Low: (May 13, 2022) $0.05084
What is the Future of Anchor Protocol in this guide? We answered the questions of who created it and how it works. Keep following us.
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