Anchor Protocol's Earn Rate Adjusts for the First Time From 19.4 to 18% APY

Anchor Protocol Profit Rate Adjusted for the First Time, From 19.4 to 18% APY – Defi Bitcoin News

Following a governance vote aimed at implementing a semi-dynamic profit rate for the Anchor protocol, the decentralized finance (defi) platform’s profit rate was revised downward for the first time this month. After flat with an annualized return of 19.4% (APY) since the project began, Anchor Protocol’s profit rate is now around 18% APY for the month of May.

Adjust the profit rate of the Defi Lending Protocol to the bottom

Lending platform Anchor Protocol is the third largest identified protocol today with a total locked value of $16.5 billion (TVL). Statistics show that over the past 30 days, Anchor TVL has increased by 9.25% since last month.

About 45 days ago, the team behind Lending Protocol announce That the proposal was passed and that the decentralized money market would have a fluctuating profit rate. Prior to the proposal, Anchor users who made terrausd (UST) deposits would receive a flat profit rate of 19.4% APY on terrausd deposits each month.

The Anchor Protocol's profit rate is adjusted for the first time, from 19.4 to 18% APY
Anchor’s current APY stats.

Since the verdict vote, the first semi-dynamic adjustment was made at the beginning of May, and today depositors are getting about 18% APY. Since the change occurred, the rate of profit can increase or decrease each period to 1.5% depending on the increase and decrease in the return reserves.

With the current 18% APY, the change this month means that depositors will receive less than they used to get before the amendment change. Moreover, in June, the profit rate may well change again depending on the protocol’s yield reserves.

The Anchor Protocol now supports two blockchains, where avalanche support was recently implemented. While $16.27 billion stems from Terra-based tokens, Anchor’s TVL value of $202.48 million is made up of avalanche-based tokens. Currently, there are $2.9 billion borrowed from the Anchor Protocol in the form of opposition loans.

The fluctuation of the anchor gain rate follows the latter Defi forex reserve purchases Manufactured by Luna Foundation Guard (LFG). The Singapore-based non-profit is leveraging reserves to support terrausd (UST) and holds LFG 80,394 BTC worth $2.89 billion and $100 million in AVAX.

With the Anchor Protocol changing incentives to a semi-dynamic win rate, it will be interesting to see if it affects the platform’s TVL, which has seen growth month on month. Over the past 24 hours, Anchor’s TVL is down 2.89% and this week it is down 0.66% in the past seven days.

Tags in this story

Stable Algorithm, Anchor, Anchor Protocol, Anchor TVL, Annual Profit Yield, APY, Avalanche Support, DeFi, Lending, Challenging Platform, Profit Rate, Profit Rate Change, Luna Foundation Gaurd (LFG), Protocol Yield Reserves, Semi-dynamic Profit Price , Stablecoins, Terra, TerraUSD, Total Locked Value, TVL, UST, UST Deposits

What do you think of the win rate adjustment for the anchor protocol? Do you think it will affect the popularity of the Challenge Protocol? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at Bitcoin.com News and a technology financial journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.




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