While the decentralized finance (defi) platform Anchor Protocol’s native digital asset ANC has gained more than 180% over the last month, the total value locked (TVL) in Anchor has increased a great deal during that time as well. Anchor Protocol is currently the second-largest defi lending platform in terms of TVL, and over the last month, Anchor’s TVL has increased by 40.13%.
Anchor TVL Surges More Than 40% in 30 Days, Protocol’s TVL Rivals Aave’s Lead
The Terra-based token anchor protocol (ANC) has increased in value significantly against the U.S. dollar during the last month. At the time of writing, 14-day metrics show ANC has gained 82.7%, and 30-day stats indicate ANC is up 182.4%.
Anchor is a lending protocol built with the Terra blockchain network, and it gathers liquidity from lenders and borrowers. Moreover, lenders depositing the stablecoin terrausd (UST) gather a stabilized yield at close to 20% APY.
In order to gather yield, Anchor uses a liquid-staking mechanism. Anchor and Orion Money also offer Ethanchor, which allows depositors to gather yield on Ethereum-based stablecoins in contrast to Anchor’s UST functionality.
Currently, Anchor is the sixth-largest defi application today, out of all the defi applications in existence according to defillama.com metrics. Anchor’s TVL has increased 5.55% over the last week, but monthly statistics indicate the protocol’s TVL jumped 40.13% since last month. Much of Anchor’s TVL increase to $11.5 billion occurred during the last 30 days.
In terms of the 124 lending applications, Anchor is now the second-largest defi lending protocol under Aave. The lending protocol Aave is just a hair above Anchor as Aave currently has a TVL of around $11.6 billion.
Below Anchor, in terms of lending defi apps by TVL, include protocols like Compound ($6.48B), Justlend ($1.86B), Venus ($1.62B), Banqi ($1.11B), and Iron Bank ($1.06B) respectively.
Anchor metrics also show there is $2.46 billion borrowed by borrowers today and people in debt have to leverage bonded LUNA or bonded ETH for collateral. Anchor’s documentation says that the defi lending protocol has three audits.
One audit published by Cryptonics goes over Anchor’s smart contracts and another audit by Cryptonics reviews Anchor’s distribution of ANC and smart contracts. Furthermore, last July an Anchor audit report was published by the team at Solidified.
Tags in this story
$11.5 billion, $2.46 billion borrowed, 20% APY, Aave, ANC, Anchor, anchor protocol, Anchor Protocol (ANC), Anchor TVL, APY, Bonded Ether, Bonded Luna, Cryptonics, decentralized finance, DeFi, defi application, defi lending, Defi protocol, Ethanchor, Liquid Staking Mechanism, Solidified, Stable Yield, Stablecoin UST, Terra, terra (LUNA), UST
What do you think about Anchor moving up the ladder to the second-largest defi lending application today? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.