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Anchor protocol was originally offered an interest rate of 3.6% but changed to 20%…

The Anchor Protocol was originally designed to offer an interest rate of 3.6%, but this was dialed up to 20% just a week before its release to attract more investors.

Anchor dev claims he warned Do Kwon over the unsustainable 20% interest rate

Mr. B, a core developer, said in an interview with Korean media outlet JTBC. “I did not know that this would go out with such a high-interest rate. Set to 20% just a week before the release. I thought I was going to collapse from the beginning. (I designed it), but it collapsed 100%.”

Mr. B said the platform is designed to offer only 3.6% interest. It is important to keep the Terra ecosystem stable as it considers the funds available in the strategic vault. Anchor’s painting. However, Mr. B revealed that a week before the launch, the developers discovered that the plan had been changed, giving investors access to a very high 20% interest for locking up their UST stablecoins in the Anchor Protocol instead.

JTBC also announced it had obtained an internal design document produced by Terraform Labs, which wrote about attracting investors with high-interest rates. The developer said he tried to work this out with Terra Luna founder Kwon Do-Hyung (Do Kwon) shortly before the April 2019 launch. “Just before the release, I suggested to CEO Kwon Do-Hyung that the interest rate should be lowered, but it was not accepted.”

The dramatic drop in Terra (LUNA) and the UST algorithm co-stable led to the Korean government’s plan to set up a new Digital Asset Committee in June to act as a watchdog. The country’s cryptocurrency industry supervisor is responsible for policy preparation and oversight. Do Kwon was summoned to attend a congressional hearing on the matter in South Korea in mid-May.

He also found himself in hot water after court documents revealed that he had dissolved Terraform Labs Korea just days before the LUNA crash. In May, Korean authorities also issued subpoenas to employees of Terraform Labs, looking into whether there was intentional price manipulation and whether the tokens followed the correct listing process.

Even so, the Terra co-founder managed to restart the network that crashed on May 28 with a new chain called Terra 2.0 (Pheonix-1), which aims to revive Terra (LUNA) and TerraUSD (UST ) Collapsed.

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