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Anchor protocol on Avax-Get 20% yield on your stables
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Anchor protocol, consistently giving ~20% APY for stables, is coming to Avalanche. Users will be soon able to deposit sAvax as collateral and borrow UST and at the same time deposit UST to earn 20% paid out in UST.
Let's take a deep dive into Anchor on Avax.
- What is Anchor protocol?
- Why Anchor on Avax is important
- sAvax and wormhole UST.
- Tutorial
Anchor protocol
Anchor is the biggest savings protocol in Terra, with a TVL of 16 billion. Anchor’s deposit side allows users to deposit UST for a yield of roughly 20%. In contrast to other Defi protocols, the yield provided by the anchor is in UST itself and does not fluctuate.
Anchor provides depositors with these stable yields using a combination of different things. The interest rate from the borrowing side, the yield from staked bAssets such as bLuna and bETH, and the yield reserves.
Anchor was giving out this consistent yield for the past year, and on its birthday, it announced they are going cross-chain to Avalanche.
