TerraLabs: Anchor Protocol

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I recently shared some news on the South Koren block chain Terra which is trading its token as Luna. Its one of those I wish I got in early as when it launched in April 2019 for less than a dollar. It sat unnoticed for quite some time and really started to pick up pace late 2020 peaking to all time highs this year.

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Even through the current bull and bear market the token has remained quite stable and even been quite bullish at times. No doubt this is due to the soon to launch colombus 5 upgrade which I recently reported on [Here](Source September is traditionally a downward trending month with token prices... https://peakd.com/hive-167922/@melbourneswest/coin-watch-luna-and-the-terra-network)

Savings Better than a bank

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Well, this is a bit of an open heading as Terra is pretty much a Decentralised bank. It is also currently working with Bank of Korea to ensure they can meet regulatory requirements and are almost at mainstream adoption which is looking like expanding into Singapore Source

I would go one step further and say they are at adoption as you can already spend Luna at shops. Not so much their token but their stable coin Terra which is trading as UST pegged to the US Dollar. Make sure you find the correct UST as there are a few out there.

Women lead the way

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As reported Here Women have been leading the adoption of the Terra Network. Providing economic opportunities and a way to keep money securely stored.

I can't help but think about the possibilities that Decentralised Banking can have on things like family violence and economic participation of women. It's a long way away and cryptocurrency is still a risky investment but if a network like Terra gets support from regulators, governments and banks then we could potentially see the opportunity for women to have a safe place to store money away from perpetrators. But that's a long way away and please don't take this as financial advice as it is not.

Terra also has the ability to be spent at shops all around the world with a payment dapp that takes care of all your transactions and provides fiat to the retailer.

In some countries where the dapp isn't available Luna provides the ability to purchase Amazon gift cards with UST which can be spent at a large range of stores across the globe.

Airdrops

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As Terra Network is still new they provide a different service to airdrops. Users who Stake Luna on the Terra Network to support the network are provided air drops of new project that launch. Depending on your amount staked is how much you get. But this also provides further economic participation and ensures an equal opportunity to participants and removes the unfair advantage some have.

Terra Labs Anchor protocol

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TerraLabs have come up with a savings account that beats most current banks. Offering at current 19.37% APY for stable coins deposited into their savings account. Depending on supply and the peg the APY can be as high as 20% which is the goal.

Anchor also enables you to borrow and lend by wrapping Luna and supplying bluna. So you can for example supply $200 worth of Luna and borrow $100 bluna which can be staked.

But what if you want a higher APY?

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If you're after a higher APY then Anchor has you covered but be warned it comes with risk and impermanent loss. If you provide liquidity of Anchor and UST and stake it on the Anchor network they will provide you with an 88.9% APY. But given the volatility of the market it is highly speculative and a risky investment.

Anchor bottom?

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As you can see, Anchors price chart is currently all over the place which indicates the volatility of the token. It may have found a bottom but again this is an extremely risky move.

With almost 20% being offered on stable coins there's probably not much of a need to risk the high yield.

How much is ROI on stable coins, works out to almost $US200 a year on $US1000 savings. If the network partners with Bank of Korea, meets regulations and cements itself as a viable option then it will be a great way to save money and earn interest.

Although, not sure how long 20% APY is sustainable if more and more users get on board. Despite that it seems like a wonderful Decentralised finance system that ticks all the boxes.

Did I mention Anchor also offers insurance on your investments adding additional security to people who use the system. Regulators will like this aspect of the project and it appears to be amongst the first to do so.

Anchor maybe on a dip or it may go lower so if you trade it be cautious.

What are your thoughts, is Luna a sleeping giant?

Image sources provided and supplemented with Canva Pro Subscription. This is not financial advice trade at your own risk and remember to do your own research.

Posted Using LeoFinance Beta



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I will definitely check out Terra/Luna after this post!

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It's a fantastic block chain with some advancements coming out including this card that you can load with Ethereum, Luna and a few other tokens and spend at stores. Impressive but still just hype until actual product is released.

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Well the 20% APR doesn't seem sustainable in my opinion. Though I am little skeptical since its linked to a bank in Korea and we tend to blame Koreans for the pumps and dumps.

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