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What Is Anchor Protocol(ANC)? Coin Review? Guide About Anchor Protocol

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What Is Anchor Protocol(ANC)?

The live Anchor Protocol price today is $3.39 USD with a 24-hour trading volume of $156,592,395 USD. They update ANC to USD price in real-time. Anchor Protocol is up 23.64% in the last 24 hours. The current CoinMarketCap ranking is #83, with a live market cap of $868,700,566 USD. It has a circulating supply of 256,221,258 ANC coins and a max. supply of 1,000,000,000 ANC coins.

If you would like to know where to buy Anchor Protocol Coin, the top cryptocurrency exchanges for trading in Anchor Protocol stock are currently Binance, OKX, Mandala Exchange, BingX, and KuCoin. You can find others listed on crypto exchanges page.To find out even more about this project, check out deep dive of Anchor Protocol.

Important Points Table Of Anchor Protocol

BasicPoints
Coin NameAnchor Protocol
Short NameANC
Circulating Supply256,221,257.57 ANC
ExplorerClick Here To View
DocumentationView Document
WebsiteClick Here To Visit

How to Buy the Anchor Protocol (ANC) Coin & Trade On Exchange?

First Step

Buying ANC Is Very Easy Task . Just Find Exchange Where ANC Available & Buy Through Your Credit & Other Altcoin .

Second Step

Once You Purchased ANC. Now It Is Time To Store Your ANC Or Start Trading On Exchange .

Tokenized Stakes

One of Anchor’s core primitives is the bAsset (bonded asset) — a tokenized stake on a PoS blockchain. A bAsset is a token that represents ownership of a staked PoS asset. Like the underlying staked asset, a bAsset pays the holder block rewards. Unlike the staked asset, a bAsset is both transferable and fungible.

Users can therefore transact with bAssets with the same ease as the underlying PoS asset. In summary, a bAsset allows the holder to earn block rewards while maintaining the liquidity and fungibility that staked assets forego. bAssets are broadly usable – they can be generated on any PoS

blockchain that supports smart contracts. bAssets are a central component of Anchor – we will soon explain their key role in offering a stable interest rate to Terra deposits. The precise mechanism of bAssets involves intricacies that are beyond the scope of this paper.

Anchor Protocol will be releasing a separate technical specification for bAssets that will cover the precise mechanics. For the purposes of Anchor we assume the existence of a tokenized staking smart contract that adheres to the above properties.

The Terra Money Market

The core building block of the Anchor Protocol Coin savings protocol is the Terra money market – a WASM (Web Assembly) smart contract on the Terra blockchain that facilitates depositing and borrowing of Terra stablecoins (TerraUSD, for instance). The money market is
defined by a pool of Terra deposits that earns interest from borrowers. Borrowers put
down digital assets as collateral to borrow Terra from the pool. The interest rate is determined algorithmically as a function of borrowing demand and supply, which is encoded
by the pool’s utilization ratio (fraction of Terra in the pool that has been borrowed).

Debt Positions

Borrowing from the Terra money market is as straightforward as locking up collateral in exchange for a loan. The main parameter of a debt position is its borrowing capacity: the maximum amount of debt an account can accrue. An account’s borrowing capacity is determined by the amount and quality of locked-up collateral. Anchor defines a loan-tovalue ratio (LTV) for each type of collateral, which indicates the fraction of a collateral

Principal Protection

Anchor Protocol implements a liquidation protocol designed to guarantee the principal of depositors. Deposits are safe insofar as all debts against them remain over-collateralized. The function of the Anchor liquidation protocol is to maintain deposit safety by paying off debts that are at risk of violating collateral requirements.

Protocol is outside the scope of this paper – we will be releasing a separate technical
specification that covers the mechanism in depth. In what follows we offer a very brief
overview.

Conclusion

They have presented Anchor, a savings protocol on the Terra blockchain powered by a money market that is collateralized by tokenized stakes (bAssets). The protocol defines the Anchor Protocol Rate, derived from the yield of the market’s highest-demand PoS assets, as the blockchain economy’s interest rate benchmark. Anchor utilizes the block rewards of bAssets to offer depositors a stable return equal to the Anchor Rate. They believe that Anchor’s simplicity and robustness make it a fitting answer to the search for a household savings product powered by cryptocurrency.

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Disclaimer

Crypto investments come with high risk and you should always exercise caution when investing in any crypto asset. Investing in crypto carries a high level of risk, and may not be suitable for all investors. Any investment decisions made by you are made at your own risk and we are not responsible for any losses that may occur. Before investing, we recommend you consult a financial advisor to understand the risks and rewards associated with investing in crypto.

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