The DeFi movement has been intensifying lately and has been seeing an increase in popularity.
Cosmos, Polkadot, and Terra team up
Blockchain firms Cosmos, Polkadot, and Terra are teaming up to launch Anchor – this is a new decentralized finance (DeFi) product that aims to generate passive income by offering reliable interest rates on stablecoin deposits.
According to the online publication the Daily Hodl, the company reveals that Anchor’s main focus will be to address the pressing need for an easy-to-use savings product that attracts users outside of the crypto space.
The DeFi savings protocol can be accessed via the blockchains of Terra, Cosmos, and Polkadot.
Terra said that Anchor depositors will be able to earn interest by getting a piece of block rewards.
The protocol will reportedly become available by the end of September this year.
“To generate yield, Anchor lends out deposits to borrowers who put down liquid-staked PoS assets from major blockchains as collateral. Anchor’s yield is thus powered by block rewards of major Proof-of-Stake blockchains,” according to Terra.
It’s also important to note the fact that the DeFi platform offers instant withdrawal of deposits and, more than that, it offers maximum protection to depositors via a protocol that “liquidates the borrower’s collateral when a loan is at risk.”
We recommend that you check out the complete Medium post in order to learn all the details available.
DeFi movement sees increased popularity
DeFi stands for decentralized finance, and it’s a revolutionary issue in the financial space, which has been gaining more and more popularity these days.
At the beginning of this strange year, there was a report by Binance Research, which was tracking the way that DeFi gains steam among the crypto savvy, and the movement was indeed gaining popularity.
Through all kinds of successful moves, the interest in DeFi continues to grow these days.