Looks like the wait for the Liquidity mining-powered savings account will have to be stretched by a bit. Let us refresh your memory, Anchor is the new decentralized finance platform from the house of Terra, Cosmos, Web3 Foundation, and Solana. Anchor aims to be a two-pronged platform for PoS token holders. The system will offer its user’s savings accounts and a lending platform which will be the major source of earning.
In one of his statements Do Kwon, a co-founder of Terra and the startup built atop it, Chai told,
“We’ve been looking at ways in order to earn passive income on our users, for unused balances in unused assets.”
The savings account’s returns will be reliant on different Proof-of-Stake currencies with additional yield over the first five years in the form of its growth token. The Anchor system was supposed to go live in the month of October but the company has decided not to rush and pushed it back to late November. The project already has been garnering appreciation. The company’s payments app Chai, in which Terra has discernible features, now has more than 2 million accounts. Terra co-founder Do Kwon further elaborated:
“Growth over the last couple of months has been largely driven by volume lift from COVID-friendly categories. For example, some of the high performing recent integrations include [Korean food-delivery service] Yogiyo and [online grocer] Hello Nature, both of which have seen tremendous growth in the recent months.”
Chai is already under a partnership deal for access to the Mongolian market. Kwon had said that travel restrictions under the covid-19 situation have a bit slowed down the team’s ability to access the market. But it is for sure adding Taiwan as the next step to acquire.
Much on the lines of Playbook by Square, Terra has a card called the Chai Card. Here the users can gather and collect points that can be redeemed for rewards with associated merchants looking for customer acquisition, like Boosts on Square’s Cash app. With this Terra is stated to have more visibility also in the western market as it is a major bridge to Ethereum. It currently offers its wrapped version on the leading decentralized finance blockchain.
Kwon noted that USDC and Tether have collateral risks because the underlying asset is USD which can both be seized and controlled. It can also be censored later. Also, DAI is extremely exorbitant to mint which explains why its demand curve has not been picking. Terra also stands out because it offers the additional advantage of providing versions that reflect several other fiat currencies beyond US dollars especially with Terra-based stablecoins for Korea, the Philippines, and Mongolia. He added further that Wrapped Terra Stablecoins will eventually become available on Ethereum from mid-October itself after its Columbus-4 mainnet upgrade happens on October 3’rd.
“We are already in conversations to integrate wrapped Terra stablecoins with a range of popular DeFi primitives as well as centralized exchanges, so look forward to seeing Terra as a serious contender for stablecoin dominance on Ethereum.”