A stablecoin deposit with the lending and borrowing technology Anchor technology may yield up to 19.5%. Lenders may deposit their UST and profit from minimal volatility while also earning competitive rates on their investments. Borrowers have the option to convert their LUNA collateral into useful assets while maintaining ownership.
Thus, Anchor Protocol can draw conservative investors seeking high-yield, low-volatility investments and boost UST demand. This helps the Terra project's acceptance in DeFi and the adoption of UST as a stablecoin. The cost of LUNA will rise as Terra, whose creators are behind the introduction of Anchor Protocol, becomes more and more popularity.
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