A decentralized finance (DeFi) altcoin is surging in price as its ecosystem takes off.
Anchor Protocol (ANC) is a lending and borrowing protocol on the Terra (LUNA) blockchain.
The project’s governance token, ANC, rallied from a seven-day low of $2.64 to a high of $4.00, marking gains of 51.52% in just one week.
Anchor Protocol has corrected since and is currently trading at $3.46.
The price rise comes as Anchor Protocol’s total value locked has skyrocketed to a record $11.21 billion, according to crypto tracker DeFi Llama. That’s up from $7.36 billion one month ago, an increase of more than 53%. Anchor is currently the top protocol on Terra in terms of TVL.
The TVL of a blockchain represents the total capital held within its smart contracts. TVL is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.
Anchor aims to provide low-volatile yields on Terra stablecoin deposits with a rate powered by a diversified stream of staking rewards from other major blockchains. The protocol currently offers 19.38% APY.
In mid-February, the project received a $450 million capital injection.
In a new Twitter thread, Anchor Protocol says it is exploring the idea of upgrading its tokenomics. According to the proposal, those who lock up their ANC tokens between one and four years will receive increased voting power and more ANC emissions.
“The longer the lock-up period, the higher the voting power and ANC distribution.”
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