Newsflash: Token.com will use Terra’s Anchor Protocol
We’re preparing to launch our new product. Token.com will initially be available for a limited number of invited users in Brazil before a wider rollout across the Latin American country throughout 2022.
As we approach our go-live date, we’re excited to share more details on how the app will work. We’re thrilled to announce that Token.com will leverage Anchor Protocol, a DeFi platform for lending and borrowing assets on the Terra blockchain.
Anchor and Token.com
Anchor is designed to pay a fixed yield rate to stablecoin lenders. It lets users deposit the decentralised stablecoin UST and pays an interest rate called the Anchor Rate when they lend it out to other DeFi users.
These users pay to borrow UST, and they must also provide collateral to ensure that they cannot default on the loan. As the borrowers must use yield-generating assets as collateral and pay a high interest rate to borrow UST, Anchor is able to sustain the Anchor Rate.
Token.com will pay the interest generated through Anchor directly through the app, providing a way to access the power of decentralised finance from the palm of their hand. There’s no minimum deposit and you can withdraw the funds at any time.
Learn more about Anchor Protocol here.
Terra is one of the world’s most used smart contract blockchains, and the second-biggest DeFi hub behind Ethereum. Its most popular DeFi application today is Anchor Protocol.
Our decision to build our product on the network comes from Terra’s unique design within the cryptocurrency ecosystem. Unlike most other leading blockchains, Terra focuses on stablecoins for real world payments. Its main currency is an algorithmic stablecoin called UST, which stays pegged to the US dollar and works in balance with the blockchain’s native token, LUNA. Both UST and LUNA have an elastic supply — UST can be minted by burning LUNA, and vice versa.
Learn more about Terra here.
While we are still fully committed to the values of Ethereum and its vision for the future, Terra aligns perfectly with our goals for Token.com. As it is primarily a stablecoin protocol, it’s perfectly suited to our target market in Brazil.
Token.com is an easy, safe and fun way to access the token economy and grow your savings. It offers a way for new crypto to experience the benefits of DeFi, something the space needs to achieve mass adoption. It will initially focus on earning outsized yields with stablecoins.
Our next steps
Finally, we want to reiterate our belief in Ethereum and the community behind it. We’ve been ardent supporters in the ecosystem as far back as 2015, and it became central to our first product. Without Ethereum, there would be no Monolith or Token.com.
While Token.com will soon launch in Brazil, we’ll also have more information regarding Monolith and our plans for developing the product in the near future. In the meantime, we’re busy preparing to launch Token.com and look forward to sharing more updates on the product once it’s live.
We’re excited to embark on this next stage in our journey and welcome a new wave of users into the decentralised token economy. The world is in the process of a major cultural and technological shift. Without a doubt, cryptocurrency technology has entered the Zeitgeist, and the future looks brighter than ever. Thank you all for being part of the story with us.