Anchor Protocol Parners With Lido Finance

Anchor is partnering once again with Lido to launch bETH (bonded Ethereum; wrapped stETH on Terra), which was proposed to be whitelisted as a collateral option on Anchor Protocol. As the first collateral option to bring in staking rewards from outside the Terra ecosystem, Anchor is expecting of the growth in TVL via the inflow of stETH liquidity, as well as the growth of APR through stETH rewards converted to UST on Anchor.

Lido is a staking protocol for Ethereum and Terra, enabling stakers to receive liquid stETH (staked Ethereum) and bLUNA (bonded LUNA) tokens. These tokens allow stakers to collect staking rewards and/or use them across a number of DeFi applications. stETH opens up a world of possibilities for Ethereum holders, allowing users to bypass the numerous restraints (illiquidity, immovability, and inaccessibility) associated with staking directly in the Eth2 deposit contract. stETH currently holds ~$1.8B in liquidity, making it one of the most liquid tokens in DeFi.

As a protocol capitalizing on staking rewards across a universe of blockchains via bAssets (bonded assets), Anchor’s upcoming move to bring on bETH as a collateral option on Anchor not only grants stETH holders increased opportunities via access to collateralized lending and Anchor liquidity mining rewards, increasing Anchor TVL via the flow of stETH liquidity, but also significantly diversifies Anchor’s asset bucket bolstering Anchor’s sustainability in the long term.

By unlocking the liquid properties of stETH on the Terra blockchain, bETH confers Lido staking rewards to bETH holders. Once bETH is deposited as collateral to Anchor, all staking rewards accrued by Anchor Protocol are then distributed to aUST holders. Rewards will be distributed in ANC (~31% APR as the time of writing) as incentives to borrowers. Additionally, the addition of bETH will serve to bolster UST demand, as stETH staking rewards will be converted to UST prior to distribution.

ABOUT ANCHOR PROTOCOL
Anchor is a savings protocol offering low-volatile yields on Terra stablecoin deposits. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains, and therefore can be expected to be much more stable than money market interest rates. We believe that a stable, reliable source of yield in Anchor has the opportunity to become the reference interest rate in crypto.

ABOUT LIDO FINANCE
Lido is a liquid staking solution for ETH 2.0 backed by a number of the industries leading blockchain staking providers. Lido allows users to stake any amount of ETH without the need to maintain complex infrastructure, while letting users unstake at any time through secondary markets.