Cosmos, Polkadot join Terra in the new DeFi savings project

Source: Adobe / BillionPhotos.com

South Korea-based stablecoin issuer Terra (LUNA) has unveiled Anchor, a new DeFi project.

The new platform will be managed by a newly established organization, the Interchain Asset Association, made up of people connected to Terra and the blockchain platforms Cosmos Network (ATOM) and Polkadot (DOT).

In a live stream for the Unitize online conference yesterday, Terra CEO Do Kwon presented the new blockchain platform, which promises to pay savers a so-called “reliable APR” (annual percentage return) for their stable coin deposits.

3 / @jackbplatts about the potential of using derivatives: You CAN leave your tokens in place and get liquidity quickly, … https://t.co/M7mS1cnwBV

– Terra (@terra_money)

Terra believes that “the path to mass adoption of decentralized finance is the savings product,” calling Anchor “the gold standard for passive income on the blockchain.”

According to the company, the system works with users depositing stablecoin into Anchor’s smart contract, which then uses these funds to establish equity positions in various compatible PoS (proof-of-stake) stablecoins.

“In order to generate a return, Anchor makes deposits to borrowers who deposit cash from large blockchains as collateral,” the announcement said, adding that this ensures that the platform’s return “through block rewards is important proof-of- Plug in blockchains. “

The project also promises that users will be able to borrow against expected future engagement rewards, as opposed to just the assets a user already owns. The new platform also offers a guarantee on the stable main coin amount deposited.

In addition to the main protection and the more stable interest rate compared to other DeFi savings products, Terra also mentioned “instant withdrawals” without the required blocking period as another important feature of the platform.

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