{"id":29374,"date":"2022-06-09T02:29:38","date_gmt":"2022-06-09T06:29:38","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29374"},"modified":"2022-06-09T02:29:49","modified_gmt":"2022-06-09T06:29:49","slug":"anchor-protocol-developer-reveals-he-warned-terras-founder-over-unsustainable-20-interest-rate","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/anchor-protocol-developer-reveals-he-warned-terras-founder-over-unsustainable-20-interest-rate\/","title":{"rendered":"Anchor Protocol Developer Reveals He Warned Terra’s Founder Over Unsustainable 20% Interest Rate"},"content":{"rendered":"\n
According to Mr. B, the Anchor Protocol<\/a> platform was designed to only offer an interest rate of 3.6%.<\/h5>\n\n\n\n
\n
\"\"<\/figure>\n<\/figure>\n\n\n\n

Anchor protocol was originally intended to offer a 3.6 percent interest rate, but this was increased to 20 percent just a week before release to attract more investors, according to a core developer in an interview with Korean media outlet\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> JTBC.<\/p>\n\n\n\n

“I had no idea this would have such a high-interestrate.” “It was set to 20% just a week before the release,” said the employee, who was only identified as Mr. B in the Korean-language report.<\/p>\n\n\n\n

\u201cI thought I was going to collapse from the beginning. (I designed it), but it collapsed 100%\u201d<\/p><\/blockquote><\/figure>\n\n\n\n

Mr. B stated that the platform was designed to only offer a 3.6 percent interest rate and that this was a critical component of keeping the Terra ecosystem stable because it took into account the available funds in Anchor's war chest.<\/p>\n\n\n\n

Mr. B, on the other hand, revealed that a week before the launch, the developers discovered that the plans had been changed, granting investors access to a very high 20% interest rate for locking up their UST<\/a> stablecoins in the Anchor Protocol instead.<\/p>\n\n\n\n

The JTBC also claims to have obtained internal Terraform Labs design documents, which discussed attracting investors with high-interest rates.<\/p>\n\n\n\n

The developer stated that he attempted to raise this issue with Terra Luna founder Kwon Do-Hyung (Do Kwon) just before the April 2019 launch.<\/p>\n\n\n\n

“Just before the release, I suggested to CEO Kwon Do-Hyung that the interest rate should be lowered, but it was not accepted.”<\/p><\/blockquote><\/figure>\n\n\n\n

The dramatic fall of Terra<\/use><\/svg><\/span><\/a> (LUNA) and the algorithmic stablecoin UST has prompted the South Korean government to announce plans to establish a new Digital Asset Committee in June to serve as a watchdog over the country's crypto industry, responsible for policy development and oversight.<\/p>\n\n\n\n

Do Kwon has been summoned to a parliamentary hearing in South Korea in mid-May on the subject.<\/p>\n\n\n\n

He's also in hot water after court documents revealed that he dissolved Terraform Labs Korea just days before the LUNA crash.<\/p>\n\n\n\n

South Korean authorities reportedly issued subpoenas to Terraform Labs employees in May to investigate whether there was intentional price manipulation and whether the tokens went through proper listing procedures.<\/p>\n\n\n\n

Despite this, the Terra co-founder was able to relaunch the network on May 28 with a new chain called Terra 2.0 (Pheonix-1), to revive the fallen Terra (LUNA<\/a>) and TerraUSD (UST).<\/p>\n","protected":false},"excerpt":{"rendered":"

According to Mr. B, the Anchor Protocol platform was designed to only offer an interest rate of 3.6%. Anchor protocol was originally intended to offer a 3.6 percent interest rate, but this was increased to 20 percent just a week before release to attract more investors, according to a core developer in an interview with […]<\/p>\n","protected":false},"author":33,"featured_media":29377,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81],"tags":[10472],"class_list":["post-29374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin-news","tag-ancvhor-protocol"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/terra-luna-anchor-protocol-anc.jpg-1.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29374","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29374"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29374\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29377"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29374"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29374"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29374"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}