Solana Comes to Largest Terra DeFi Protocol, Anchor: Here’s How

Anchor Protocol, one of many largest decentralized finance (DeFi) protocols and the core DeFi of the Terra (LUNA) ecosystem, teases a serious improve of its design.

Anchor Protocol (ANC) begins accepting bSOL with 60% LTV

Based on the official announcement shared by the Anchor Protocol (ANC) workforce, for the primary time ever, it began onboarding the Solana-based asset as a collateral alternative for its platform.

1/ It is the second you @solana bulls have been ready for…$bSOL is coming to Anchor as a brand new collateral sort! 🎉 Upon execution, customers will be capable to borrow $UST in opposition to their $bSOL as much as 60% LTV.

— Anchor Protocol (@anchor_protocol) May 6, 2022

bSOL, an artificial asset derived from Solana’s core cryptocurrency SOL, can now be used as collateral to borrow TerraUSD (UST), Terra’s USD-pegged stablecoin.

The loan-to-value (LTV) ratio for the upcoming collateralization choice will probably be set at 60%, in line with Anchor Protocol’s workforce assertion.

As per the unique textual content of the proposal shared on Anchor Protocol’s discussion board, bSOL tokens might be obtained by staking SOL on the Lido Finance liquid staking module, wrapping the rewards and sending them to Terra (LUNA) by way of Wormhole multi-chain bridge ecosystem.

Terra’s (LUNA) heavyweight breaks into high three DeFis

Nonetheless, the precise design and reward fee of the upcoming improve will probably be shared by the Anchor Protocol (ANC) workforce within the coming days.

Fanatics of Anchor Protocol (ANC) are optimistic in regards to the upcoming addition to its protocol and are asking whether or not it’s attainable to create a related instrument based mostly on Concord’s token, ONE.

Terra (LUNA) is the most important sensible contracts platform by TVL behind Ethereum (ETH). Largely, it ought to be attributed to the huge reputation of Anchor, which is the third largest DeFi protocol, solely surpassed by Lido Finance and Curve.