Anchor Protocol & Lido Partner to Launch bETH

Introduction to bETH

As a platform whose yield is powered by staking rewards from various Proof-of-Stake blockchains, we are thrilled to announce that Anchor is partnering once again with Lido to launch bETH (bonded Ethereum; wrapped stETH on Terra), which was proposed to be whitelisted as a collateral option on Anchor Protocol! As the first collateral option to bring in staking rewards from outside the Terra ecosystem, we’re expectant of the growth in TVL via the inflow of stETH liquidity, as well as the growth of APR through stETH rewards converted to UST on Anchor.

Lido is a staking protocol for Ethereum and Terra, enabling stakers to receive liquid stETH (staked Ethereum) and bLUNA (bonded LUNA) tokens. These tokens allow stakers to collect staking rewards and/or use them across a number of DeFi applications. stETH opens up a world of possibilities for Ethereum holders, allowing users to bypass the numerous restraints (illiquidity, immovability, and inaccessibility) associated with staking directly in the Eth2 deposit contract. stETH currently holds ~$1.8B in liquidity, making it one of the most liquid tokens in DeFi.

Designed to be plugged into a variety of DeFi protocols, an integration with Anchor Protocol for both steady and high yield is naturally the next step to expand stETH utility.

bETH on Anchor

As a protocol capitalizing on staking rewards across a universe of blockchains via bAssets (bonded assets), Anchor’s upcoming move to bring on bETH as a collateral option on Anchor not only grants stETH holders increased opportunities via access to collateralized lending and Anchor liquidity mining rewards, increasing Anchor TVL via the flow of stETH liquidity, but also significantly diversifies Anchor’s asset bucket, bolstering Anchor’s sustainability in the long term.

Furthermore, by unlocking the liquid properties of stETH on the Terra blockchain, bETH confers Lido staking rewards to bETH holders. Once bETH is deposited as collateral to Anchor, all staking rewards accrued by Anchor Protocol are then distributed to aUST holders. Rewards will be distributed in ANC (~31% APR at the time of writing) as incentives to borrowers. Additionally, the addition of bETH will serve to bolster UST demand, as stETH staking rewards will be converted to UST prior to distribution.

How to Use bETH on Anchor

1. Convert ETH or stETH to bETH via Lido.
2. Deposit bETH as collateral to Anchor and borrow UST on that collateral.
3. Pay borrow APR and receive rewards in ANC, distributed as incentives to borrowers.
4. Get bETH back and continue gathering staking rewards on it.

*To note, the function to collect bETH staking rewards is currently only possible directly through the contract and will be made available on the Anchor WebApp in the following weeks.

Smart Contracts

• Main repository

Terra (Contract) Addresses

• CW20 bETH Token: terra1dzhzukyezv0etz22ud940z7adyv7xgcjkahuun
• bETH Reward: terra1939tzfn4hn960ychpcsjshu8jds3zdwlp8jed9
• bETH mmCustody: terra10cxuzggyvvv44magvrh3thpdnk9cmlgk93gmx2
• Shuttle (bETH Minter): terra13yxhrk08qvdf5zdc9ss5mwsg5sf7zva9xrgwgc

Ethereum (Contract) Addresses

• stETH: 0xae7ab96520DE3A18E5e111B5EaAb095312D7fE84
• ERC20 bETH Token: 0x707F9118e33A9B8998beA41dd0d46f38bb963FC8
• ERC20 Wrapped UST: 0xa47c8bf37f92aBed4A126BDA807A7b7498661acD
• bETH ShuttleVault: 0xF9dcf31EE6EB94AB732A43c2FbA1dC6179c98965
• AnchorVault: 0xA2F987A546D4CD1c607Ee8141276876C26b72Bdf
• BridgeConnectorShuttle: 0x513251faB2542532753972B8FE9A7b60621affaD
• RewardsLiquidator: 0xdb99Fdb42FEc8Ba414ea60b3a189208bBdbfa321
• InsuranceConnector: 0x2BDfD3De0fF23373B621CDAD0aD3dF1580efE701

Resources

• Anchor Protocol: https://app.anchorprotocol.com/earn
• Lido Staking: https://lido.fi
• View smart contracts: https://github.com/lidofinance/anchor-collateral-steth
• Convert ETH/stETH <> bETH: https://anchor.lido.fi
• Shuttle bETH across Terra <> Ethereum: https://bridge.terra.money
• Proposal to whitelist bETH as collateral on Anchor (LTV = 60%): https://forum.anchorprotocol.com/t/beth-collateral-onboarding/976

Looking Forward

The launch and upcoming addition of bETH as a collateral option on Anchor Protocol (depending on the passage of the governance poll) marks significant steps for Lido and Anchor Protocol in further expanding and building upon the inherently interoperable natures of both protocols, fulfilling the mandate to serve as building blocks in the DeFi ecosystem. We are excited to make a stride towards ensuring Anchor’s long-term stability by diversifying the flow of staking rewards from a universe of Proof-of-Stake blockchains and pave the way for additional forms of collateral (e.g., stSOL, stAAVE) on Anchor in the near future.