About

Anchor Protocol is a company that offers financial services in the blockchain industry. Their main activities revolve around providing users with a stablecoin anchored to a diversified basket of global assets, enabling stability and easy access to digital currency. The protocol operates on the Terra blockchain, allowing users to earn yield, borrow assets, and participate in decentralized finance (DeFi) applications.

History

Anchor Protocol is a Terra-based application built by Terraform Labs (TFL). Its launch was the realization of TFL's vision of integrating three primary financial primitives (payments via UST, savings via Anchor, and investing via Mirror Protocol) on the Cosmos SDK-based Terra blockchain.

Anchor Protocol was founded to increase demand for Terra's native stablecoin, UST, by offering a 20% yield to lenders. It also allows traditional finance participants to integrate with DeFi. Anchor has an API that fintech platforms, exchanges, and B2B businesses can integrate and offer interest-bearing savings accounts.

Anchor combines with Mirror Protocol and TFL's Chai wallets to expand the use cases for Terra-based stablecoins like UST. Chai has already achieved some adoption in Asia by serving as a payments app that uses Terra's KRW stablecoin.

TFL envisions Anchor serving as an inter-chain source of liquidity for users looking to borrow various layer-1 native tokens. It also establishes a benchmark for a fixed and un-levered USD-pegged yield within crypto.