Share this article
Anchor Community Submits Proposal to Restore UST Peg
Algorithmic stablecoin TerraUSD has fallen sharply from its $1 peg over the past 48 hours.
Updated May 11, 2023, 6:32 p.m. Published May 11, 2022, 10:39 a.m.
Make us preferred on Google
The Anchor Protocol community has submitted a proposal to restore the TerraUSD (UST) stablecoin, which was trading at 57 cents at the time of writing, to its $1 peg.
- Dubbed "Emergency measures for restoring Terra peg," the proposal aims to lower minimum interest rates to 3.5% and maximum deposit rates to 5.5%.
- Anchor is a decentralized finance (DeFi) platform where the majority of UST staking/borrowing takes place. It has seen its total volume locked (TVL) slump to about $3 billion from almost $18 billion.
- The current yield of 18% would be temporarily reduced with a "targeted interest rate of 4%," according to the proposal. "A depegged UST cannot sustain 18% APY any longer," according to the post, referring to an annual percentage yield.
- Reducing the interest rate would prevent the Anchor reserve from depleting and contribute to "stopping the depeg death spiral."
- Another proposed emergency measure is to increase virtual liquidity for Terra to Luna swaps by a factor of 1,000 to avoid a prolonged UST depeg.
- TVL for Anchor Protocol has dropped to $2.61 billion from last week's high of $17.15 billion, according to DeFiLlama.
- The protocol's native token, ANC, has lost 69% of its value in the past 24 hours and was recently trading at about 26 cents.
CORRECT (May 11, 11:05 UTC): Correct stablecoin's name to TerraUSD. An earlier version had it as US Terra.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
HYPE token's 50% surge is a story of crypto-traditional market convergence, treasury firm says
HYPE has surged 50%, outperforming bitcoin, ether and the CoinDesk 20 index by a big margin.
What to know:
- Hyperliquid's HYPE token has surged more than 50% to $34.57 this week, far outpacing bitcoin, ether and the broader crypto market, as trading activity on the platform accelerates.
- The token rally represents the merging of traditional assets with the crypto world, according to Hyperion DeFi, which is a HYPE treasury company.
- Originally a crypto perpetuals exchange, Hyperliquid has expanded into tokenized trading of equity indices, individual stocks, commodities and major fiat pairs via its HIP-3 upgrade.
Top Stories
