The decentralized finance platform (defi) pay rate fell for the first time ever this month following the governance decision to roll out a semi-dynamic pay rate for the peg protocol.
Anchor Protocol’s annual percentage yield (APY) has remained stable at around 19.4% since the start of the project, but is currently at 18% APY in May. Anchor Protocol, a lending platform, is now the third largest defi protocol, with a total value of $16.5 billion (TVL). Anchor’s TVL has climbed 9.25% in the last 30 days compared to last month, according to the statistics. Between May 1 and May 6, the price of ANC increased by 42.50%, reaching $2.26, the highest in 3 weeks.
Nonetheless, after crashing into what appears to be a strong confluence on May 6-7, the token saw a massive sell-off.
Anchor protocol increased steadily
The developers behind the loan protocol said about 45 days ago that a proposal had been passed and the decentralized money market would now have a changing rate of remuneration. Prior to the plan, Anchor users who deposited terra USD (UST) received a monthly rate of 19.4% APY on their UST deposits.
Since the governance decision, the first semi-dynamic correction took place in early May, and depositors are now receiving around 18% APY. Since the modification, the rate of gain could increase or decrease by 1.5% in each period, depending on the evolution of the yield reserves. Also, with the current APY of 18%, depositors will receive less this month than before the change. Also, depending on the yield reserves of the protocol, the win rate could change again in June.
Anchor Protocol now includes two blockchains, thanks to the addition of Avalanche support. While Terra-based tokens represent $16.27 billion, Avalanche-based tokens represent $202.48 million of Anchor’s TVL. Defi loans were obtained from the anchor protocol for a total of $2.9 billion.