Introducing EthAnchor
Introducing EthAnchor
We announced the launch of Anchor Protocol in March 2021, which enabled users to deposit UST on the Anchor web app for 20% yield — the first protocol to promise both stable and high interest on stablecoin deposits. The recent market turmoil has stress-tested Anchor’s ability to provide stable returns in extremely volatile market conditions, and while there are improvements the Anchor team is implementing and fine-tuning (detailed in this thread), what was clear is that Anchor delivered as intended.
Anchor’s APY is intended to be between 18% (threshold limit) and 20% (target limit), with the protocol dipping into the yield reserve to maintain a minimum of 18% APY in extreme circumstances such as severe LUNA price volatility leading to a sharp decline in borrower rates on Anchor. The yield reserve is replenished in typical market conditions with a healthy utilization ratio.
In light of Anchor’s ability to withstand extreme market conditions, proving to be a safe haven for anchoring stablecoin deposits during periods of high volatility, we are delighted to announce the release of EthAnchor. EthAnchor expands the Anchor offering to Ethereum-based stablecoins, allowing users to now deposit a greater variety of stablecoins on Anchor for a 15% yield. The initial stablecoins to be supported on EthAnchor are USDC, USDT, DAI, and BUSD. Additionally, wrapped UST can be deposited onto Anchor for the Anchor UST rate (18–20%).
As UST deposits generate aUST tokens, depositing Ethereum-based stablecoins will generate yield-bearing tokens in kind. So, depositing USDC will yield Anchor USDC (aUSDC) tokens, and so on. Behind the scenes, EthAnchor utilizes Curve to facilitate swaps between UST and non-UST stablecoins, converting non-UST stablecoins to wrapped UST and depositing them onto Anchor via layer 2.
Orion Saver — front-end interface for EthAnchor
Similar to how Terra Bridge provides a seamless experience for users to utilize Terra Shuttle, Orion Saver will provide the front-end interface enabling users to make interchain stablecoin deposits on EthAnchor in a frictionless manner. Orion Savings is brought to you by Orion Money — the winning team in the Delphi Labs-backed Terra Hackathon, outlining the problems they aim to solve here.
On Orion Savings, users can deposit wrapped UST, USDC, USDT, DAI, and BUSD directly on the Orion Saver dApp — at launch, the APY rates will be 15% for wrapped UST, and 12% for all other non-UST stablecoin deposits. Once the Orion token launches, the rates will increase depending on the user’s Orion token holdings. Note the associated risks, as Orion smart contracts are currently being audited and Orion Savings is in its alpha release, with features to be added based on user feedback. In the future, the Orion team will continue to play an integral role in the Anchor ecosystem by owning the development and maintenance of EthAnchor. Learn more about Orion Saver in their introductory Medium here.
EthAnchor is only the beginning. Anchor will expand to enable users to deposit stablecoins across blockchains such as Binance Smart Chain (BSCAnchor) and Solana(SolAnchor), providing stable interest rates on stablecoins currently unrivaled by any other savings platform. We’re excited to integrate Anchor not only with fintech platforms, but also across the universe of blockchains!
Resources: EthAnchor Github | EthAnchor Docs | Orion Money | Orion Saver Webapp
About Orion Money
Orion Money’s vision is to become a cross-chain stablecoin bank — the best place in DeFi to hold your favorite stablecoins and get the best possible yield. Our first product — Orion Saver — is an easy-to-use dApp that provides the highest stable yield in crypto for Ethereum-based stablecoins (UST, USDT, USDC, DAI, BUSD) — without users having to even leave the Ethereum network. We believe there is a vast, untapped opportunity in stablecoin savings. Currently, however, it is siloed within each blockchain. Orion Money bridges the gap between networks to allow users to get high, stable yields in an easy, convenient, and frictionless way.
About Anchor Protocol
Anchor Protocol is a decentralized savings protocol and money market built on top of the Terra blockchain. Anchor offers UST depositors a stable 20% APY, which is sourced from the cashflows generated from yield-bearing staking derivatives used as collateral for UST-denominated loans on the borrower side. Anchor unlocks the potential of bonded staking capital of macro-entangled PoS blockchains, providing the benchmark, cross-chain reference rate for the formation of a DeFi-native interest rate curve.
