The largest DeFi platform user on the Terra network is Anchor protocolHave Voted We support proposals to limit the functionality of the protocol to prevent future attacks on the network.
1 / Important update of anchor protocol 🧵
With the passage of Proposal 29, the community has decisively voted to limit the functionality of the anchor to prevent further attacks. Click here for results 👇https://t.co/Jus1FMlsah
— Anchor protocol (@anchor_protocol) June 8, 2022
According to the announcement, users can only withdraw funds or deposit USTC to earn AUST, so anchor operations such as revenue and borrowing will be stopped.
The team also continues to use interest-free deposits on the platform so that borrowers of the mirror protocol “using $ aUST as collateral to get $ aUST when needed to prevent margin calls” are available. Clarified that it is possible.
According to the details released by the protocol, 23.11% of its users voted for the new proposal.
Kwon reportedly raised interest rates on the Anchor Protocol
Given the state of the protocol after Terra’s epic crash, this new development isn’t surprising at all. The Anchor Protocol played a key role in Terra’s success, as its 20% interest rate attracted many investors to the ecosystem.
A JTBC According to the report, the intended interest rate by the protocol designer was initially 3.6%. However, Do Kwon raised this rate to more than 20% in the 11th hour of the project’s start.
At the time of pressing, like the anchor protocol Other crypto assets linked to Terra, Lost its value. In context, the DeFi protocol has lost more than 50% of its price within the last two weeks, despite community efforts to revive Terra.
The crypto community reacts
Most crypto community members who respond to the news of the outage of anchor operations have stated that the protocol will not work without another stablecoin.
Waiting for another stablecoin. Without it, the anchor will not work.
— Small fry 🦐 (@ Bigfatfoot1) June 8, 2022
However, others have blamed the protocol for ignoring community members during the crash.
I ignored the community when I ignored the LUNC. I lost everything from here because everyone is stuck here.
— Nhattuan (@ tuannhat811) June 8, 2022
