Anchor Protocol (ANC) Price Rebounds, Surges 15% in Last 24 Hours
- The protocol continually burns ANC to support its price while issuing ANC tokens.
- Investors in Terra’s dollar-pegged stablecoin may earn a steady 20% APY.
The Terra blockchain-based decentralized finance (DeFi) platform Anchor Protocol (ANC) has recovered approximately 300% in over a month after hitting a low of $1.26. At $4.97 on March 3, 2022, the price of ANC had risen past the previous high, which was about $4.50, set on December 3 of the last year.
As a result, the ‘crypto winter’ losses that began in Q4/2021 and were attributed to the Federal Reserve’s aggressive rate rises were erased by the Anchor Protocol.
20% APY on ANC Deposits
Using the Anchor Protocol’s decentralized money market, investors in Terra’s dollar-pegged stablecoin may earn a steady 20 percent annual percentage yield (APY) on their ANC deposits. Additionally, borrowers may use bonded LUNA (bLUNA) to collateralize UST loans.
The rising volatility in the crypto market has undoubtedly attracted traders because of the yield of 20%. The protocol continually burns ANC to support its price while issuing ANC tokens as incentives for Anchor depositors. In the previous 30 days, the value of another UST-linked coin, LUNA, has risen by 79%, according to CoinMarketCap.
Thus, demand for UST is created, which promises to reduce the supply of LUNA tokens. When UST’s value increases beyond $1 owing to Terra’s economic model, users are incentivized to mint it by burning the LUNA supply. After a 15 percent rise in the previous 24 hours due to traders looking to get exposure to Anchor protocol’s relatively high return, its token price (ANC) has avoided a drop in the crypto market.
The post has appeared first on thenewscrypto.com
Read more: https://thenewscrypto.com/anchor-protocol-anc-price-rebounds-surges-15-in-last-24-hours/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
