There are multiple rumors and proposals surrounding Anchor updates. This is important because more than half of all activities in Terra chain comes from Anchor. The more attractive Anchor becomes the more buyers for UST and Luna.
Do Kwon one of the founders of Terra chain is also the creator of Anchor protocol. Recently he posted a twit on his optimism on Anchor.
Do Kwon is setting an example and encouraging users to continue using Earn. Earn is the part of the Anchor protocol that is providing a stable coin yield of 19.5%. Do Kwon states that with the demand of UST it has allowed the Terra chain is able to use proceeds to purchase BTC thereby backing Luna's value with BTC and growing.
Potential sAVAX
Over on Avalanche protocol a bridge of AVAX that is very popular is the sAVAX, short for staked AVAX. This token is now in a voting proposal on Anchor as to it becoming a form of asset borrowers can use to borrow UST. This would officially become the third asset on Anchor to be allowed to be used on the platform as colleteral. A huge upgrade considering it has been only bLuna and bETH for more than a year.
Conclusions
There are no more important updates when it comes to Terra chain than that of Anchor. The project simply has too much as stack for the whole ecosystem but it is improving day by day. The actual progress for users to see is coming in slower than expected compared to other projects but the slow upgrades comes with stability. For instance EARN with 19.5% APY on stable coin UST has remain as such for over a year now. Even with some news coming on and off of it potentially failing it has remain intact.
However Do Kwon did explain he is expecting the rate to be variable in the future in order to keep Anchor sustainable. This is more realistic outcome for the project and something where I think majority of its investors are able to accept. As more money rolls into Anchor and more people using Anchor there is so much growth to be had in the price of Luna.
None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!
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