Binance Exchange has launchedThe new TerraUSD (UST) staking program with an APY of up to 19.63%, Do Kwon, co-founder of Terra Luna (LUNA), has also spoken about the launch.
“Anchor interest rates are now available to over 30 million binance users,” Do Kwon said.
Terra ( Luna ) ecosystem consists of Stablecoin UST algorithm and LUNA governance token and has Anchor protocol working as a “crypto savings account” which allows users to deposit UST and earn APY up to almost 20%. This high savings rate is supported by a combination of borrowers paying interest on UST loans and their collateral income.
Now, however, Anchor is facing an ongoing monetary imbalance between borrowers and lenders. with deposits worth 12.4 billion UST, but withhappenOf just $3.47 billion UST, Anchor had to draw up reserves so it could pay APY at the same rate, and Anchor currently has less than 340 million UST in reserves, compared to 450 million UST last month. Although the reserves are declining But the Terra development team is looking for a solution, such as increasing the reserves. and the introduction of additional monetization methods. to maintain the functionality of the protocol.
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