Anchor protocol is decentralized lending protocol running on top of terra blockchain one of cosmos blockchain. you can visit https://app.anchorprotocol.com/ where you will find the four sections
EARN BORROW BOND GOVERN
In the earn section you will find the deposit sign where you can deposit the usd stable coin issued by the terra project with an apy 19.48% in the time of writing.in order to being able to use anchor protocol you need to download terra station wallet as our browser extension, you can do that by going https://www.terra.money/ and selecting "download station wallet" and following the steps you will create a new wallet. you can deposit your UST coins by buying the from kucoin or uniswap if you don't have account there you can buy luna coins and send the on terra station wallet and swap them for ust. Now to the borrow tab you can borrow the ust that the lenders deposited on the earn tab there you will see how the lenders earn almost return with the oroboros apr the apy that the borrower pays is 25.35% and a percentage of the coins staking but why the borrower will accept paying 25 % apy if he can borrow with less, because he pays the borrower with the Distribution APR 40.09% this payment is contacted with the anchor coin right now the payment is 14,73% on your initial investment. on the first look it seems like they are paying you to borrow money but the risk reward ratio is big because the luna coin you put as collateral can lose its value and your collateral gets liquidated and your rewards comes as anchor coins and their price fluctuates.in the mid May when the market was very bullish the profit was almost 30% because there was less fear.
