Anchor Protocol

One of Anchor’s core primitives is the bAsset (bonded asset) — a tokenized stake on a PoS blockchain. A bAsset is a token that represents ownership of a staked PoS asset. Like the underlying staked asset, a bAsset pays the holder block rewards. Unlike the staked asset, a bAsset is both transferable and fungible.

Users can therefore transact with bAssets with the same ease as the underlying PoS asset. In summary, a bAsset allows the holder to earn block rewards while maintaining the liquidity and fungibility that staked assets forego. bAssets are broadly usable – they can be generated on any PoSblockchain that supports smart contracts. bAssets are a central component of Anchor – we will soon explain their key role in offering a stable interest rate to Terra deposits.

The precise mechanism of bAssets involves intricacies. We will be releasing a separate technical specification for bAssets that will cover the precise mechanics. For the purposes of Anchor we assume the existence of a tokenized staking smart contract that adheres to the above properties.

Anchor designed to provide the benchmark interest rate for DeFi, the first decentralized challenger to the Federal Funds Rate (FFR). It pools the only unlevered source of yield in DeFi, staking emissions from major PoS chains like Terra, Polkadot, Cosmos, Solana, and ETH 2.0. Deploying staking derivatives, Anchor stabilizes the cash flows from PoS staking positions and feeds them to depositors at a low-volatility benchmark rate.

We call it the “Stripe for Savings,” and envision Anchor becoming the first mass adopted savings product sourced from the DeFi market. Anchor is intuitive to use, offers attractive, stable interest rates to UST depositors, unlocks liquidity for PoS stakers, and is trivial to integrate into applications and fintech platforms via the Anchor API and SDK.

We’re proud to share that our official launch partner, CoinList, has integrated Anchor and will enable UST deposits for non-US users into Anchor directly from the exchange interface! We’re also thrilled to announce that Lido Finance, the DAO behind ETH 2.0 liquid staking derivatives, has implemented the first liquid staking derivative (bAsset) that can be used as collateral on Anchor right now — bLUNA.

It’s time for the composable and decentralized power of DeFi to meet the mainstream.

Welcome to the Anchor Rate — a fixed-income, DeFi-native interest rate that can serve as the reference rate for an emerging DeFi yield curve and pure household savings vehicle.