Launched in March 2021 by Terraform Labs, Anchor Protocol was a decentralized finance (DeFi) money market built on the Terra blockchain. Its mission was to provide a simple and accessible savings solution with low-volatility yields for crypto depositors. The protocol's main draw was its flagship product, which offered a stable interest rate of nearly 20% APY on deposits of the TerraUSD (UST) stablecoin. This was achieved by lending out deposits to borrowers who provided bonded crypto assets as collateral. The protocol's model proved unsustainable and collapsed dramatically in May 2022 when the UST stablecoin lost its peg to the US dollar, leading to a catastrophic "death spiral" for both UST and the Terra (LUNA) token, erasing tens of billions of dollars in value.

Founded in

Canada