While the decentralized finance (defi) platform Anchor Protocol’s native digital asset ANC has gained more than 180% over the last month, the total value locked (TVL) in Anchor has increased a great deal during that time as well. Anchor Protocol is currently the second-largest defi lending platform in terms of TVL, and over the last month, Anchor’s TVL has increased by 40.13%.
Anchor TVL increases by more than 40% in 30 days, Protocol’s TVL rivals Aave
The Terra-based Token Anchor Protocol (ANC) has risen significantly in value against the US dollar over the past month. At the time of writing, 14-day metrics show ANC gained 82.7% and 30-day stats show ANC increased 182.4%.
Anchor is a lending protocol built with the Terra blockchain network, and it gathers liquidity from lenders and borrowers. Moreover, lenders depositing the stablecoin terrausd (UST) gather a stabilized yield at close to 20% APY.
In order to collect returns, Anchor uses a liquid staking mechanism. Anchor and Orion Money also offer Ethanchor, which allows depositors to collect returns on Ethereum-based stablecoins, unlike Anchor’s UST functionality.
Currently, Anchor is the sixth-largest defi application today, out of all the defi applications in existence according to defillama.com metrics. Anchor’s TVL has increased 5.55% over the last week, but monthly statistics indicate the protocol’s TVL jumped 40.13% since last month. Much of Anchor’s TVL increase to $11.5 billion occurred during the last 30 days.
In terms of 124 loan applications, Anchor is now the second largest challenge loan protocol under Aave. The Aave loan protocol is just a hair above Anchor as Aave currently has a TVL of around $11.6 billion.
Below Anchor, in terms of lending defi apps by TVL, include protocols like Compound ($6.48B), Justlend ($1.86B), Venus ($1.62B), Banqi ($1.11B), and Iron Bank ($1.06B) respectively.
The peg metrics also show that there is $2.46 billion borrowed by borrowers today and those in debt need to leverage bonded LUNA or bonded ETH as collateral. Anchor’s documentation indicates that the challenge loan protocol has three audits.
One audit published by Cryptonics goes over Anchor’s smart contracts and another audit by Cryptonics reviews Anchor’s distribution of ANC and smart contracts. Furthermore, last July an Anchor audit report was published by the team at Solidified.
