Anchor Protocol
Also known as: Anchor UST, Terra Savings Protocol, DeFi High-Yield App
A once-popular DeFi savings protocol on Terra that offered high-yield interest on stablecoin deposits.
Anchor Protocol was a decentralized savings and lending platform built on the Terra blockchain, known for offering high yields (up to 20%) on deposits of UST, a now-defunct algorithmic stablecoin. Users could deposit UST to earn interest or borrow against bonded assets like bLUNA and bETH. The protocol’s attractive fixed yields were sustained via subsidies and token incentives. However, the collapse of Terra and UST in 2022 led to Anchor’s failure, highlighting risks in unsustainable yield models and algorithmic stablecoins. Anchor remains a cautionary tale in the DeFi space.