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Golden Observation | Anchor's annual rate can be as high as 20%?



20% Annualized Savings Account Earlier this year, Pantera participated in a $25 million funding round for Terraform Labs. Terra is the protocol's unique blockchain, known for its stablecoins anchored to fiat currencies, most notably TerraUSD (UST), which ranks fifth in market capitalization, and more than 2 million users of Korean Chai payment technology start-ups use UST. Terraform Labs is also the company behind Mirror Protocol, a decentralized platform for trading synthetic shares of specific public companies. Last month, Terra launched its latest project, Anchor, an easy-to-use savings platform that could have a huge impact on the DeFi space. What is the DeFi field like today? If you have been paying attention to the rapid rise of DeFi, you must have heard that yield farming and liquidity mining can generate income. In June 2020, after the launch of the Compound and Aave lending platforms, retail investors can use investment strategies to transfer assets between different agreements to maximize returns and obtain excess returns. As a result, DeFi began to develop rapidly, and early users who participated in DeFi provided the liquidity required for the operation of the protocol and obtained considerable returns. Decentralized lending platforms work by matching depositors with borrowers, with the former wanting to obtain low-risk interest rates through borrowing. The traditional banking system borrows through credit ratings and other KYC methods to evaluate the credit of the borrower. In contrast, most loans on DeFi platforms require over-collateralization. In other words, the borrower must deposit more currency as collateral than the loan amount, usually 2-3 times the loan amount. This guarantees the repayment of the loan, even without trusting or even knowing the counterparty. Golden Morning News | September 11 Overnight Important Updates: 21:00-7:00 Keywords: Sichuan, European Central Bank, DeFi, Tether additional issuance 1. Sichuan: Explore the establishment of a digital asset trading platform based on blockchain technology. 2. President of the European Central Bank: A decision is about to be made on whether to issue a digital currency in the euro zone. 3. JD Digits teamed up with China Storage to launch a blockchain-based Huoduibao platform. 4. Tether issued an additional 250 million USDT on the TRON network (authorized but not issued). 5. The payment company Square established the Cryptocurrency Open Patent Alliance. 6. YFI touched $34,900 for a short time, and rose by more than 28% in 24 hours. 7. The three major U.S. stock indexes all closed down, and the blockchain concept stocks fell more and rose less. 8. Cai Liang, Zhejiang University: It is recommended to vigorously develop a safe and controllable blockchain platform. 9. The DeFi project Yfdexf.Finance defrauded investors of $20 million. 10. EMD, an EOS project suspected of running away, has returned more than 260,000 EOS. [2020/9/11] Today, nearly a year has passed since the DeFi boom, and the field continues to innovate in exciting ways, with new protocols trying to provide competitive interest rates to both lenders and borrowers. At present, the total lock-up value of DeFi lending is close to 25 billion US dollars, which is a huge achievement for open finance. Golden Morning News | A list of important overnight events on August 26: 21:00-7:00 Keywords: Brazil, Ethereum, the United States,, Jiangsu Province 1. Brazilian senators proposed a series of cryptocurrency business laws; 2 . The Ethereum client Geth has launched version v1.9.20; 3. The IRS once again sent a tax warning letter to cryptocurrency holders; 4. Starbucks allows consumers to use Microsoft blockchain solutions to track the source of coffee; 5. Jiangsu The province has organized and implemented 80 key research and development projects in areas such as blockchain; 6. Lawyers: my country’s supervision of encrypted digital currencies will only become more stringent; 7. Research: Ethereum tokens worth 1 billion US dollars are vulnerable Fake deposit attack; 8. The number of voters agreeing to yVaults' participation in governance has reached the target; 9. ConsenSys acquired Quorum, a blockchain platform owned by JPMorgan Chase, and received strategic investment from JPMorgan Chase. [2020/8/26] Why can't DeFi become more mainstream? The recent DeFi boom has revealed the truth that technology can go from fringe to popular culture at an unprecedented speed. In a few months, NFT has gone from a mysterious acronym to a national hot topic. In many ways, using DeFi is as easy as trading NFTs, generally resulting in more reliable and profitable financial returns. So why isn't DeFi known to the general public in the same way? Jinse Finance contract data broadcast丨BTC failed to explore $7,000 and oscillated below the pressure level: According to the Huobi BTC quarterly contract market, as of 16:00 (GMT+8), the BTC price was temporarily reported at $6,591 (-1.32%), The 24-hour quarterly contract turnover was US$2.178 billion (-6.46%). Yesterday afternoon, the BTC quarterly contract reached an upward measurement of 7,000 US dollars, and was quickly suppressed to 6,500 US dollars, and the trading volume continued to decline. According to the Huobi contract data, the total BTC positions increased by 7.29%, and the increase in long positions of large investors was greater than that of short positions. The quarterly contract basis rate was stable. BTC is in a state of waiting and oscillating under pressure. The price of USDT on Huobi Global OTC is $7.23, with a premium rate of 1.91%. The premium rate is basically maintained. [2020/3/26] Here are two reasons: Barriers to entry. Using lending platforms like Compound and Aave can scare non-crypto-native generations. In addition to complex technical operations, such as browser wallets, the user experience is not intuitive, and people who are new to DeFi are more likely to distrust protocols, especially lack of understanding of cryptocurrencies. interest rate changes. DeFi protocol yields can sometimes vary widely. This is largely due to underlying collateral price volatility, which impacts "utilization" and the resulting yield, complicating investors' long-term financial planning, who are also indirectly affected by fluctuations in the overall cryptocurrency market . News | VENAS attended the Jinse Finance Year-End Summit and won the "Most Valuable Alliance Chain" award: On December 27, 2019, VENAS was invited to participate in the "2019 Co-Creation with Time" awards summit hosted by Jine Finance in Beijing, and won the "Most Valuable Alliance Chain" award. This means that the concept of "VENAS is a chain reform, a public chain-level alliance" has attracted the attention of the blockchain industry and recognized by the mainstream media. The VENAS vein draws inspiration from nature and builds an organic alliance structure that extends from the main leaf veins into a network. So as to realize the "effective and harmonious unity of order and disorder" in the alliance structure. The concept of "self-contained database on the chain" was introduced, which greatly improved the TPS speed of data interaction on the chain, and changed the traditional concept of "blockchain is just a database of shared ledgers" in people's understanding. VENAS aims to empower enterprises, link applications to the chain, and build a chain that connects everything like the veins of leaves for the ecology. [2019/12/27] Gas fees are high. The Ethereum blockchain is congested, and Gas fees hit a new high, making it difficult for users to use decentralized applications at low cost. Its cost could be high enough to deter some users from trying DeFi. How does Anchor solve these problems? Anchor is a decentralized savings agreement, the goal is to provide UST depositors with a rate of return of about 20%, which is more than 200 times the average annual rate of return of 0.07% for bank savings accounts. Jinse Finance live report HelloEOS founder Zi Cen: EOS itself has no risk: Jinse Finance live report, at Huobi EOS Global Super Node SHOW, Hello EOS founder Zi Cen gave a live speech, Zi Cen pointed out: EOS itself has no risk, EOS The biggest risk is that if you think there is a risk, you may not be able to hold it. EOS has no opponents; EOS does not need to analyze the reasons for its rise, just like the rising of the sun is not because of the crowing of the cock; after a few years, we will look at the K-line of EOS, The whole year of 2017 is just a straight line; the listing of the exchange is not a good thing for EOS, but the listing of EOS is a good news for the exchange; the carrying capacity of the bottom layer of the public chain is the watershed between the geek toys and the technological revolution; the holders have the final say Distributed autonomy is truly reasonable autonomy; with EOS, let us experience the feeling of holding power for the first time in our lives. [2018/5/14] Other decentralized lending platforms attract arbitrageurs and traders seeking to maximize returns, while Anchor's goal is savings. This white paper depicts a grand vision: Although many financial products have emerged, in the DeFi field, there is still no savings product that is simple enough, safe and acceptable to the public. Ultimately, we want Anchor to become the gold standard for passive income in the blockchain space. Anchor has the following characteristics: 1. Independent blockchain. Anchor is built on the Terra blockchain and is part of the Cosmos ecosystem. While this may limit the interoperability of Ethereum applications and may be a short-term barrier to adoption of the protocol, it significantly reduces gas fees and provides more flexibility to the protocol. The important thing is that Terra Bridge has been launched. It is a cross-chain bridge solution between Terra, Ethereum and Binance blockchains. Terra assets can be easily transferred between different blockchains at low cost, and all can be transferred within the same interface. accomplish. 2. Ease of use. Once the web application is connected to the Terra wallet, users can deposit, borrow, vote, and stake. The layout is clean and intuitive. While Anchor may seem intimidating to CeFi users, it is a meaningful step in the right direction. Anchor's API can be easily integrated into fintech platforms, digital banks, encrypted exchanges, digital wallets, etc. The team calls this fintech compatibility "a big step forward for savings." 3. 20% annualized interest rate. It is hard to believe that there is a financial instrument that can provide regular income, but with low risk, the return can be as high as Anchor. If the rate of return continues to stabilize at around 20% annualized, saving on Anchor will become a matter of course for individuals and investors. The competition in the field of encryption front-end applications is fierce, and Anchor's fixed 20% annualized rate can be used as a unique advantage to attract a wider user group, because it is not affected by cryptocurrency price fluctuations, which increases its attractiveness in the next bear market. Why is the annualized rate of Anchor so high? Although there are many amazing return indicators in DeFi, it seems difficult to believe that a savings product can guarantee a 20% annual return. How does Anchor do it? The secret lies in the way the loan is collateralized. At the macro level, Anchor, like Compound, is a decentralized currency market. However, for Anchor, borrowers can only provide liquid mortgage derivatives as collateral on the supply side. For mainstream PoS chains, such as Cosmos, Polkadot, Ethereum, Solana, etc., liquidity mortgage derivatives are based on the pledged positions in the blockchain and use the capital flow to generate tokens. The pledged derivatives in Anchor are called bAssets, and bLUNA, a derivative of Terra's native asset LUNA, is currently the first derivative on the platform. The borrower's pledge yield is passed on to the saver. In addition, the platform adopts over-collateralized loans, and the pledge return will be magnified. Borrowers and lenders would split the proceeds equally, resulting in high interest rates. Do Kwon, co-founder and CEO of Terra, tweeted a tweet where you can find a visual explanation of how Anchor achieves 20% low annualized volatility. Interestingly, compared with the benefits of other DeFi protocol changes, pledged derivatives in the encryption market are not subject to short-term debt cycles and speculative investments, especially in the currency market. The reason is that for most mainstream PoS chains, the pledge income for maintaining consensus is based on the release of native tokens, that is, network inflation, and cross-chain transaction fees. Transaction fees will be distributed to pledgers as a reward for ensuring network security. Through pledged derivatives, Anchor is able to adjust and stabilize deposit rates on the demand side without being affected by speculative demand cycles. For example, after a sharp drop in token prices, it will lead to a decline in yields, because investors are less likely to borrow and trade with leverage , to obtain greater returns. As a source of unleveraged income, Anchor's 20% annualized rate can be used as the original data of the DeFi yield curve. The interest rates of most traditional finance can be derived from the federal funds rate. Similarly, the interest rate of Anchor is equivalent to the decentralized federal funds rate, which is the benchmark interest rate of DeFi. The agreement initially sets the annual rate at 20%, but it can be adjusted using Anchor's governance system in the future. As the ratio of lenders and borrowers changes, this ratio sometimes fluctuates slightly. Currently, the incentives for ANC token lending will be adjusted according to borrowing needs. So far, though, Anchor's stabilization mechanism has managed to keep the annualized rate at 20%. How to use Anchor? I recommend you watch The Defiant's demo video to give Anchor a try. From my experience, even without Terra Wallet or any UST, you can get 20% annualized return in 30 minutes. Once you set it up, you can use Anchor in various ways: 1. Mortgage USDT to get 20% annualized income. 2. Borrow funds and get a return higher than the interest itself. The current net annual interest rate is about 110%, and there are also ANC token rewards. 3. Purchase ANC, which is Anchor’s governance token, to benefit from the use of the platform, earn pledge rewards, and participate in determining the future of the protocol. The residual income of the supply side, that is, the borrower, is also used to purchase ANC in the open market and distribute it to ANC holders. The price of ANC is linearly proportional to the scale of the agreement's asset management. What is the future goal of Anchor? Just two weeks after going live, Anchor has more than $160 million in deposits and $110 million in borrowings. This is a testament to the attractiveness of Anchor's earnings, its solid technology, and the blockchain industry's need for "savings as a service". The team's vision is to become a mainstream savings product in the decentralized world, adopting the DeFi "gold standard" interest rate.


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