The Anchor Community Proposes Lower Returns on UST Deposits

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The Anchor protocol community has proposed lowering the target rate of return on UST deposits to 4%, hoping that this may contribute to the restoration of the parity of the algorithmic stablecoin with the US dollar.

The author of the emergency offer, Daniel Hong, was one of the developers of the original Anchor smart contract. According to him, lowering the deposit rate would stop additional UST from coming into circulation.

Anchor uses a floating interest rate. If the initiative is approved, its minimum value will be reduced to 3.5%, and the maximum to 5.5%. Voting on the proposal will last until May 18.

At the moment, the rate of return on the protocol is 19.64%.

Since the beginning of the crisis in the Terra ecosystem, almost 9.5 billion UST have been withdrawn from Anchor.