Are you trying to determine if the Anchor protocol is right for you? How can a 19.5% APY return be possible?
Today I do a deep dive into what UST and the Anchor Protocol are, how they work, and the risks associated with them. I discuss the Terra blockchain, insurance capabilities for both UST destabilization and Anchor protocol hacks, and top it off with a tutorial on how to use Anchor.
1:00 What are Stablecoins
5:20 Background on the Terra Blockchain
8:15 How UST Works and Associated Risk
15:21 Regulatory and Centralization Risk
22:51 How Anchor Works and Associated Risk
29:01 Security – Risk of UST and Anchor Hacks
33:01 Brief summary of Insurance for Anchor and UST
36:55 Conclusion of Risks Involved with UST and Anchor
Helpful Links from the Video
Stablecoin View CoinmarketCap: https://coinmarketcap.com/view/stable…
USDC Circle website: https://www.circle.com/en/usdc
USDC Audit Reports: https://www.centre.io/usdc-transparency
Terra Docs: https://docs.terra.money/docs/learn/p…
Terra Ecosystem: https://www.terra.money/ecosystem
Luna Foundation Guard Article: https://decrypt.co/93577/terra-says-l…
Luna Foundation Guard: https://lfg.org/missionandvision/
Do Kwon Yahoo Finance Interview: https://finance.yahoo.com/video/terra…
Terra Finder: https://finder.extraterrestrial.money/
Extraterrestrial Finder: https://finder.extraterrestrial.money/
Do Kwan Twitter Thread: https://twitter.com/stablekwon/status…
The Anchor Protocol: https://app.anchorprotocol.com/
Terra Security Audit:
Anchor Protocol Security Audits:
How to get insurance on Anchor Protocol Tutorial: How to get insurance on Anchor Protocol | Terra Tutorial: https://www.youtube.com/watch?v=p4QH-tJ4vQA&t=201s
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Post video Correction
I need to make a correction – I forgot to account for the Luna Terraform Labs holds in the form of validator staking. This Luna accounts for 58 million of the 314 million Terraform Labs have.
This means that the accurate calculation is: 256 Million/ 375 Million = 68% 68% is still a very high figure and doesn’t take the centralization risk out of the picture, but less so than the 84% figure I initially mentioned. Terraform Labs and The Luna Foundation Guard collectively hold about 72% of Luna.
These figures are mentioned around 20:34 and 37:40.