Anchor and Solana
Building interest rates in crypto
Anchor is a decentralized savings protocol providing stablecoin deposits with low volatility yields and which is powered by diverse streams of staking rewards from major Proof of Stake blockchains. The protocol is the top passive income protocol which was built on Terra has now onboarded Solana via $bSOL. $bSol is a wrapped version of $stSOL which was a collateral used to obtain $UST which is a stablecoin made on Terra.
The team made the announcemet on their Twitter This past Saturday May 7, 2022, giving the holders of $stSOL access to collateralized lending and $ANC liquidity rewards. In order to recieve the $stSOL users must stake Solana on Lido which is a multi-chain liquid staking protocol. The plan of the Anchor team is to make gains on the $350 million market cap in order to grow the TVL ( total value locked) above $15 billion which is the current level. As you wrap your stSOL to bSOL your rewards from staking will be converted to UST and then will be available to be claimed. You can then take your bSOL and deposit it to Anchor as collateral and those rewards made on Anchor will in turn be distributed to aUST holders. this way Anchor users and $bSOL holders can get the $UST liquidity while still working with the Solana token.