AnchorFinance

Developed by Terraform Labs, Anchor Protocol was a lending and borrowing protocol designed to be a decentralized "savings account" for the crypto world. Its flagship product offered a seemingly stable ~20% annual percentage yield (APY) on deposits of TerraUSD (UST), an algorithmic stablecoin. This high yield attracted billions of dollars in deposits, making Anchor the cornerstone of the Terra ecosystem. The protocol's model proved unsustainable and collapsed spectacularly in May 2022 when UST lost its dollar peg, leading to a hyperinflationary "death spiral" of its sister token, LUNA, and erasing tens of billions of dollars in investor value.