Anchor Protocol: DeFi Money Machine on Terra LUNA

From a bullish perspective things are Kind of Boring right now so if you take fud fear Uncertainty doubt you put fud aside what Exactly should a smart investor be doing From our perspective the answer is Obvious an intelligent investor should Be looking for passive income Opportunities especially as they pertain To stable coin options in the crypto Space but the high yields promised by so Many of these protocols are simply not Sustainable one big exception however Has been anchor protocol which still Offers interest rates at around 20 Percent on stable coins and now that It's gone enter chain it's taken the Passive income opportunity beyond just The terra ecosystem the protocol is just Over one year old and yet already it's Locked in a massive 15 nearly 16 Billion dollars in tvl total value Locked but how can you make double digit Gains using anchor how long will its Reserves last And what are the risks if you watch this Video to the end you're going to get Answers not only to those questions but To other ones and you're going to help Us out because of course that's what the Youtube algorithm favors length views of Videos so stay tuned members of the Altcoin buzz army we are deep diving Into anchor protocol

[Music] There for those that are new to the Channel my name is maddie and this is Altcoin buzz we are a crypto investment Research company we have documented many 100x returns on coins and tokens that Are top projects today really before Anyone else was even talking about them And if you want to see our detailed Process for researching such projects Then our new and improved altcoin buzz Access group is for you just one final Word before we deep dive into anchor Protocol whether you're talking about Cryptocurrency or any other kind of Investment there is always a Corresponding risk associated with any Kind of investment so just keep in mind That this video yes we're expressing our Opinions yes we may be investors in Anchor protocol but none of this should Be taken as official financial or Investment advice terraform labs Tfl they built anchor protocol and are Based in seoul south korea they're also The team behind the terra block chain a Project that as you've probably seen Lately we've been talking about quite a Bit because we're extremely enthusiastic About it we feel it's ultra high quality And by launching anchor tfl realized Their vision they wanted essentially to Combine three financial basics payments By ust

Savings via anchor protocol and Investing with mirror protocol and to The crypto investors like yourself like Myself it offers practically high stable Deposit yields instant withdrawals and Principal protection which is a great Feature anker offers high yield with Lower risk on the ust stablecoin which Of course is tara's stablecoin and look In case you had your doubts anker is not Just another protocol in the terra Ecosystem in fact it was written by Terra co-founder nicholas platias head Of research at terraform labs all right Let's talk value proposition Anchor is a decentralized savings Protocol that's the most basic way to Think about it they offer low volatile Yields on terra stable coin deposits so Lenders look to earn stable yields on Their stable coins and then on the flip Side borrowers look to borrow stable Coins on stakeable assets yield for ust Is currently 19.48 This in contrast to bank interest which Hover around 0.5 you can see the Juxtaposition there it's pretty much Night and day so at its core anchor Works similar to a bank savings account But the rewards are just so much better Locking money up earns interest so the Question becomes how can anker offer 20 Well first we need to look at some tera And anchor tokens used on anchor let's

Start with ust or terra usd this is the Terra block chains decentralized and Algorithmic stable coin then we also Have luna l-u-n-a this is tara's Governance and staking token and the Idea here is that it keeps the ust Pegged to the A usd C that's anchor's governance and staking Token and then you also have b assets These are bonded assets like b luna or b Eth so these tokens represent a staked Asset like luna or eth but b assets Offer block rewards to their holders They're transferable and fungible just Like staked assets and then finally There's anchor terra or atera this is Better known as aust and these Constitute deposited stable coins you Can redeem these for the initial deposit Along with any accumulated interest that You've earned and when borrowing it's Best to install the native terror wallet That's our recommendation at least and Now the next step is to bond luna with b Luna this is going to be your collateral Then you deposit the b luna so you Receive ust and then depending on how Much b luna you deposit you're going to Receive ust just keep in mind that you Always over collateralize next deposit The borrowed stablecoin and the reward Is going to be in anc anchors native Token and then in turn use the anc token

To stake for governance rewards at 8.5 Apr the anc ust liquidity pool is also An option the apr here is 78 And this requires both tokens just keep That in mind anchor protocol earns a Return by staking the borrower's luna Collateral all right let's talk Ecosystem here and when we look at the Ecosystem holistically we need to look At teralab's ecosystem as well well over 70 apps are live on the terra blockchain And just some of the categories that They occupy include synthetics savings Amms that's automated market makers Payments Wallets launch pads lotteries yields and Of course nft's non-fungible tokens and Besides anker teralabs runs a couple of Other projects as well there's mirror This is a synthetic asset protocol that Creates fungible assets and these track The price of real world assets and There's also pylon protocol it's a Principal protected investments and Payments platform so pylon allows for Sustainable transactions between users And creators and a yield redirection Protocol and lossless investments is Also the idea here with pylon and these Last two mirror and pylon are part of Tfl's vision they want to combine three Financial basics payments Savings and investments and all on their Very own terra block chain the majority

Of projects in the terra ecosystem seem To be independent kujira is also worth Pointing out here it's a project that Levels crypto retail traders with whales By beating out the bots and as we Alluded to at the beginning of this Video anchor protocol has had a very Auspicious start nearly 16 billion Dollars in tvl Really by its first birthday anchor has Also taken its first steps towards inter Chain with avalanche blockchain powered Of course by wormhole bridge and then Just recently over these last few hours We've witnessed the launch of more than 10 500 transfers pretty impressive metrics All around okay and now we go to Tokenomics as you can imagine with Yields of 20 anchor protocol Is a pretty popular project and for good Reason despite all the tensions Happening right now they're ongoing Between unfortunately russia and ukraine The anchor token held on to green Candles by market cap it just falls out Of the top 100 as you can see it's Ranked here number 105 but if anker Manages to stay mostly in the green it Could very well improve that ranking Right now it sits at 2.93 Flat on the day with market cap of 783 million dollars and if anc manages To stay above the resistance level at

Two dollars and 87 cents then it could Very well turn bullish and if it gains Some momentum and buying pressure builds Up then we could very well see a test of The next resistance level at three Dollars and eight cents if it breaks Above that with significant buying Volume we could see a good chance of Crossing above three dollars and 34 Cents anchor protocol reports that their Current circulating supply is 256 Million anc and this has been confirmed By coin gecko anchor distributed 150 Million anc at genesis and the total Supply is 1 billion anc tokens Distribution of the remaining 850 Million or so will take place over four Years that process started in january of This year 2022. Annual token inflation is as follows Year one you're looking at 216 Inflation year two 57.9 percent Inflation year three 16.7 percent Inflation and year four 14.3 percent inflation and the tvl total Value locked sits here at 13.3 Billion dollars according to Coingecko.com Let's talk competitors now Basically we can file anchor competitors Under two broad categories other d5 Protocols that provide staking options And other protocols that offer ust Options trader joe offers staking

Farming lending and liquidity pools and Their staking apr is just under 50 Percent but terra is looking into Expanding usd to five different Protocols on polygon ethereum and solana And they plan to deploy 139 million Dollars in ust the first of these Protocols is olympus dow an ohm based Decentralized reserve currency protocol Enabling ust bonds by bonding 1 million Dollars ust and olympus dow is active on Terra solana and polygon protocol number Two is tokamak network this is a defy Liquidity provider and market maker on Ethereum 50 million dollars in ust are Going to get widespread liquidity and Farm toke t-o-k-e next up is convex a Defy yield farm on ethereum 18 million Dollars ust swap to luna this is for Increased votium incentives Penultimately here we have rari fuse an Open interest rate protocol on ethereum 20 million dollars ust is going to be Used to seed fuse pools and kickstart Ust borrowing and then finally we have Invictus dow which is also enabling ust Bonds bonding 250 000 In ust what are some of the risks here Well look getting a 20 stable and low Risk return on stable coins sounds Exciting but before you jump in and Start locking up your money it may be a Good idea to be aware of some of the Risks that come along with this

Territory first of all there's a Liquidation risk so if the b luna price Drops but for example ust remains the Same then the loan to value ratio or ltv Goes up and when the ltv maxes out at 60 You need to pledge more be luna as Collateral or you're going to get Liquidated holding bonded assets is Another risk so when forced out of a ust Loan it leaves you with only b luna a Volatile token that might lose value at Least it's possible in contrast to a Stable coin opting for liquidation may Put you at a loss another risk is that The stablecoin becomes unstable when a Stable is no longer pegged to the usd This can occur Lower apr is also a potential risk Anker's apr does fluctuate depending on How many people join more people mean More rewards but one of the previous Three actions may see people leave the Anchor protocol so the apr will decrease In value accordingly if that happens Finally there is a smart contract risk And there is always a risk that a smart Contract has a bug And unfortunately a bad actor exploits It of course you can mitigate the risks Of smart contracts and de-pegging anker Offers anchor tara insurance plans at 7.3 percent on average per year okay and Finally we're looking at the road map Currently you can only bond be eth and b

Luna however there are plans that have Been announced to add polka dot and Phantom in the near future two other of Course very well known proof of stake Pos chains anchors also looking into Adding fiat on-ramps so ust deposited Becomes accessible with credit or debit Cards or direct bank wires and they're Also looking into more fintech Integration for the network there you Have it guys that is our deep dive of Anchor protocol one of the highest Paying yield d5 projects in the crypto Space today we showed you step by step How to join the protocol and earn a low Risk 20 yield which is a pretty good Diversification option for your Portfolio you can spread your risk and Earn passive income regardless of Whether it's a bull or a bear market Cycle if you're still watching this Video first of all give yourself a pat On the back also be sure to like Subscribe share and hit the bell to Receive notifications so that you always Stay up to date with our most time Sensitive video publications as a Reminder if you're looking for more In-depth research be sure to check out Altcoinbuzz access a link to more Information is available as always in The description below best of luck of Course if you choose to invest stay safe Out there members of the altcoin buzz

Army check out these other couple of Videos which should be popping up right About now and as always we do up to you Again soon in our next video take care