Anchor Protocol Review – Is Anchor Protocol Legit or Scam

Anchor Protocol review

Anchor Protocol Token is another fast rising coin in the cryptocurrency market today. Crypto natives into investing and making profits off cryptocurrency are already looking at the possibilities of delving into investing on Anchor Protocol.

Before going into investing in it, you have to read this and know all about Anchor Protocol and their project. For investors, check out the price prediction of Anchor Protocol for the next 10 years to further aid your research.

Please note; This is not an Affiliate Link related article, neither is it a Promotional Article.

About Anchor Protocol

The Anchor Token (ANC) is Anchor Protocol’s governance token. Users can deposit (or stake) ANC tokens to create new governance polls, which can be voted on by users that have staked ANC.

When was Anchor Protocol launched?

Anchor Protocol is a smart saving platform that offers crypto natives, fintech companies and investors a stable but high interest rate finance. The company was founded in 2020 with the headquartered situated in Seoul, South Korea and was launched on March 17th 2021.

Anchor Protocol Supply

There are 87,577,028.99 ANC in supply.

Pros and Cons of Anchor Protocol

Pros of Anchor Protocol
  • Anchor Protocol is offers low-rate borrowing stablecoins option for users
  • A lot of investors are ‘flocking’ to invest
  • It is now listed on Coinbase
  • They are fully decentralized
Cons of Anchor Protocol
  • The coin is still under development (since still under developement, it can easily be hacked)
  • Lots of foreign exchange risks
  • Multiple issues with its synchronizations between ledgers
  • UST keeps Depegging.
  • If there be a sudden crash, yield not sustainable
  • Slowly, Anchor’s yield reserve is running out

How reliable is Anchor Protocol?

For those who wants to learn and understand how reliable Anchor Protocol is – The project is built on top of the Terra (LUNA) network, which is a smart lending platform that aims to produce a reliable 20% fixed interest rate on all stablecoins.

Is Anchor Staking safe?

On our review guide, Anchor is one of the safest protocols in the crypto market. Going over to the protocol’s whitepaper first line which reads, “Despite the proliferation of financial products, DeFi has yet to produce a savings product simple and safe enough to gain mass adoption.” This is a clear indication that Anchor with their project, wants to build a protocol system so simple and safe for all.

Who is behind Anchor Protocol?

The Protocol is a Terra-based smart application built by Terraform Labs (TFL). Terra is a public blockchain protocol deploying a suite of algorithmic decentralized stablecoins, which can underpin a thriving ecosystem and bring DeFi to the masses. Anchor Protocol’s launch was the activation of TFL’s vision of properly integrating three primary financial primitives which are (payments via UST, savings via Anchor, and investing via Mirror Protocol) on the Cosmos SDK-based Terra blockchain.

How does Anchor Protocol make money?

Anchor creates a very juicy money market value. They are very cautious of the whitelisted collateral which is reserved for the liquid staking derivatives of major PoS protocols. This in turn, makes the collateral earn staking rewards which also turns out to be the main and real yield.

How does Anchor Maintain 20%?

Anchor maintains 20% due yield from a system which operates using a liquid staking mechanism. Also, staking rewards earned on bLUNA by mass borrowers are liquidated by the protocol into UST for depositors. This allows them to earn target yield up to 20%.

Is Anchor Protocol Legit or Scam?

Due to the high rate of scam in cryptocurrency, a lot of traders have been trading in fear and most have also given up.

According to research, Anchor Protocol is not a scam coin. It has been listed on top cryptocurrency wallets like Blockchain, Binance and lots more.

Follow our blog to learn about coin legitimacy. You can share your thoughts and experiences about Anchor Protocol on the comment section below. Don’t forget to rate and leave a review.

 

3 Comments

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