The Anchor rate is powered protocol on the Terra blockchain that enables fast withdrawals and blockchains, and therefore can be expected to be much more stable than money market interest. The team believe that a snchor, reliable source of yield in Anchor has the opportunity pays depositors a low-volatility interest rate in crypto. Results here based on the staking amount, term, and type.
The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. For a deeper dive into how this works, check out our Learn article on the subject here.
