The DeFi Standard For Crypto-Native Fixed Income
The macro storm of quantitative easing and record low interest rates has depressed yields in traditional finance beyond measure. Anchor is the first protocol in Decentralized Finance (DeFi) designed to capture the 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 of unlevered, reliable yield in cryptocurrency: Proof-of-Stake (PoS) block rewards. Anchor synthesises DeFi yield with PoS rewards, creating a fundamentally new economic primitive – the Anchor Rate – providing lenders a stable rate of return. In time, we believe the Anchor Rate will become the reference rate for DeFi investment – a Decentralized Funds Rate – and eventually the gold standard for passive income on the 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.