Crypto investors are some of the biggest risk-takers in the financial market today. Frankly, the sector is volatile, and you can gain or lose overnight. Fortunately, crypto investors have come up with innovative products with reduced risks.
Anchor protocol on the Terra blockchain provides a low-risk crypto investment opportunity in digital currencies accepted on Terra, a decentralized crypto saving platform that rewards the investors for their digital assets to be used for various projects on the protocol. It is called proof-of-stake, which is considered a more stable investment option.
How It Works
Investors save their money with Anchor protocols and benefit in two ways: rewards and rights to borrow cryptocurrencies.
So, let’s talk about rewards for a minute. When you deposit digital assets or crypto coins that are accepted on the platform, you provide the protocol with enough funds to utilize on the Terra blockchain. In return, they give you an APY of 20% plus other benefits. This is deposited in your wallet and you can decide to withdraw it or let it grow your investments. They derive the money they give you from lending crypto to other members.
On the other hand, you can borrow cryptocurrencies from the Anchor protocol while using your saved crypto as collateral. So, if you have an urgent need for funds, there is no need to withdraw your savings, all you need to do is borrow. The platform approves loans almost instantly, especially if you are a trusted member. Interested? You can learn more about the Anchor protocol by visiting the Loop website.
How to Get Started
You can sign up with Anchor protocol anytime you want and start saving. The process is pretty simple.
You can use any of the platforms that are synchronized with Terra to sign up, for instance a Chrome extension or the Terra station website. Navigate to the Anchor protocol tab and choose the earn side. Investors have to deposit UST or other stablecoins accepted on Terra to start earning.
Some of the tools you are provided include a calculator to understand your total income at the end of the period you intend to save. Just make use of it to make informed decisions.
As mentioned, you can also borrow, and this is pretty simple as well. The borrow page gives all the information including the collateral, interest rate, and repayment period.
What Are the Benefits?
By now, you already know that Anchor protocol is a low-risk decentralized saving platform. The stablecoins are pegged to the rate of the dollar and remain stable throughout. The platform uses bank-level security, which protects digital assets very well.
With the Anchor protocol, the yields are greater than what the bank offers. If you have taken the time to compare, you might have noticed a huge difference. There is also the simplicity in handling your proceeds because you can withdraw to your wallet as you wish or grow your investment as we already mentioned.
Final Words
It is important to make wise and informed decisions before crypto investment. If you are interested in the Anchor protocol, we have shared important insights that will change your mind. You can also share this information to help other like-minded investors.
