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How to buy Anchor Protocol (ANC) in the US
A beginner's guide to buying and selling ANC in the US.
How to buy Anchor Protocol
Look for an exchange that supports both fiat and cryptocurrency to simplify buying Anchor Protocol.
- Open an account on an exchange that supports ANC.
Jump to our table to compare popular options — just remember that most exchanges require an email address, phone number and proof of ID to register.
- Deposit funds into your account.
Fund your account with a bank transfer, pay with a credit or debit card or deposit cryptocurrency from a crypto wallet to buy Anchor Protocol.
- Buy Anchor Protocol.
Complete your Anchor Protocol purchase and then find the best wallet to store ANC.
What is Anchor Protocol?
Anchor Protocol is a savings-based DeFi protocol on the Terra blockchain that supposedly enables you to earn higher returns on your savings as passive income. ANC is its native token which is used for staking and governance. The protocol accepts deposits in Terra tokens and enables instant withdrawals while paying you a “low volatility interest rate.” Terra is a blockchain protocol that utilizes stablecoins pegged to fiat currencies to enable price-stable payment systems. Anchor’s core proposition is a principal-protected stablecoin product that pays you a stable interest rate on your savings.
For generating yields, the protocol lends deposits to borrowers that deposit collateral in the form of staked assets from major blockchains. The collateral is known as bAssets. The interest rates on deposits are stabilized by sharing a fraction of the yield of the deposited bAssets with the depositor. In addition to the fixed interest rates, the protocol also guarantees a principal-protected system. The principal is guaranteed for depositors by liquidating collateral from the borrowers.
This liquidation is done through liquidation contracts and third parties that indulge in arbitrage. Users that aren’t interested in depositing or borrowing funds, can participate in this protocol through Anchor’s liquidation pool. This is a high-risk high-return product that enables principal protection for the protocol’s debt positions to the lenders. Such users earn rewards through passive premiums and liquidation fees on the execution of the liquidation contracts.
Anchor Protocol (ANC) is in the top 1,000 cryptocurrencies in the world by market cap, valued at $429,861,972. The current price of Anchor Protocol is $3.26, which is 0.122% higher than yesterday. Prices have ranged between $3.31 and $3.2 over the past 24 hours. All prices are listed in US dollars and accurate as of October 26, 2021 06:10 UTC.
Where to buy Anchor Protocol
Find an exchange to buy, sell and trade ANC by comparing deposit methods, supported fiat currencies and fees. Select Go to site to sign up directly with the provider.
Anchor Protocol at a glance
|Total ANC supply||1,000,000,000|
|All time high||US$8.23|
|Notable team members||Marco Di Maggio, Eui Joon Lee|
|Partnerships||DeFi Alliance, Delphi Ventures|
|Token uses||Governance token|
Anchor Protocol price performance over time
How to sell Anchor Protocol
You can cash out your ANC with the same exchange you bought it through:
- Sign in to the exchange you have ANC on.
If you store your Anchor Protocol in a digital wallet, compare crypto exchanges to sell it on.
- Place a sell order.
Choose the amount of ANC you'd like to sell.
- Complete your transaction.
Confirm the sell price and fees and close your sale of Anchor Protocol.
What to consider when buying Anchor ProtocolDespite the promise of returns and other guarantees, DeFi protocols are often risky for investors. Thus, it’s critical for you to understand all the risks and factors associated with a particular DeFi protocol before investing in its native token. Here are the factors you need to consider before investing in ANC:
- Smart Contract Risk: Whenever smart contracts enable a DeFi protocol, there are always inherent to smart contracts themselves. There have been many instances of smart contracts being hacked (Spartan Protocol, Meerkat Finance, etc.) on DeFi protocols. Anchors uses the Web Assembly smart contract that enables the depositing and withdrawal of Terra tokens. Thus, always do your own research on the vulnerabilities the protocols smart contract could have.
- High Dependency on Terra: Anchor is heavily dependent on Terra’s money market and in particular its native token, LUNA. Like any other cryptocurrency, there are market volatility risks that LUNA has. If LUNA loses more than 50% of its value, you should have collateral that keeps the loan to value ratio less than 0.5, else the liquidation risk increases significantly.
- Regulations: Since Anchor is highly dependent on the Terra network’s stablecoins, any regulatory impact on Terra’s blockchain model can heavily influence the platform’s entire business model. Currently, Anchor operates in a regulatory grey area as there is no clear regulation on stablecoins yet in most markets. If a disruptive regulation is enforced, it could lead to the collapse of the platform.
- Economic Incentive: The protocol’s promised 20% yield comes from staking rewards from borrowers. They are incentivized to borrow by a high annual percentage rate (APR) of ANC in return. Once the APR reduces, it might not be enough incentive for borrowers to take funds using the protocol thus depositors won’t be able to earn a 20% yield as promised.
Anchor Protocol (ANC) in news
Elon Musk Pumps Dogecoin Again
MasterCard to allow its merchants to integrate crypto in partnership with Bakkt.
OlympusDAO developer launches protocol enabling one-to-one stablecoin swaps
Disclaimer: Cryptocurrencies, including Anchor Protocol, are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance of ANC is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the Anchor Protocol or any other cryptocurrency discussed.
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