Anchor Nips at Aave's Heels as Defi Protocol Becomes Second-Largest Lending Application

Anchor TVL Surges More Than 40% in 30 Days, Protocol‘s TVL Rivals Aave’s Lead

The Terra-based token anchor protocol (ANC) has increased in value significantly against the U.S. dollar during the last month. At the time of writing, 14-day metrics show ANC has gained 82.7%, and 30-day stats indicate ANC is up 182.4%.

Anchor is a lending protocol built with the Terra blockchain network, and it gathers liquidity from lenders and borrowers. Moreover, lenders depositing the stablecoin terrausd (UST) gather a stabilized yield at close to 20% APY.

In order to gather yield, Anchor uses a liquid-staking mechanism. Anchor and Orion Money also offer Ethanchor, which allows depositors to gather yield on Ethereum-based stablecoins in contrast to Anchors UST functionality.

Currently, Anchor is the sixth-largest defi application today, out of all the defi applications in existence according to defillama.com metrics. Anchor‘s TVL has increased 5.55% over the last week, but monthly statistics indicate the protocol’s TVL jumped 40.13% since last month. Much of Anchors TVL increase to $11.5 billion occurred during the last 30 days.

In terms of the 124 lending applications, Anchor is now the second-largest defi lending protocol under Aave. The lending protocol Aave is just a hair above Anchor as Aave currently has a TVL of around $11.6 billion.

Below Anchor, in terms of lending defi apps by TVL, include protocols like Compound ($6.48B), Justlend ($1.86B), Venus ($1.62B), Banqi ($1.11B), and Iron Bank ($1.06B) respectively.

Anchor metrics also show there is $2.46 billion borrowed by borrowers today and people in debt have to leverage bonded LUNA or bonded ETH for collateral. Anchors documentation says that the defi lending protocol has three audits.

One audit published by Cryptonics goes over Anchor‘s smart contracts and another audit by Cryptonics reviews Anchor’s distribution of ANC and smart contracts. Furthermore, last July an Anchor audit report was published by the team at Solidified.