Following the governance vote that aimed to implement a semi-dynamic earn rate for the Anchor Protocol, the decentralized finance (defi) platform’s earn rate adjusted downward for the first time this month. After holding steady with a 19.4% annual percentage yield (APY) since the project started, Anchor Protocol’s earn rate is now roughly 18% APY for the month of May.
Defi Lending Protocol Anchor’s Earn Rate Adjusts Downward
The lending platform Anchor Protocol is the third-largest defi protocol today with $16.5 billion total value locked (TVL). Statistics show that during the last 30 days, Anchor’s TVL has increased 9.25% since last month.
Around 45 days ago, the team behind the lending protocol announced that a proposal had passed and the decentralized money market would have a fluctuating earn rate. Before the proposal, Anchor users who deposited terrausd (UST) would get a steady 19.4% APY earn rate on their UST deposits every month.
Since the governance vote passed, the