- Who is the interested party for this collateral application?
- Provide a brief high-level overview of the project, with a focus on the applying collateral token.
Anchor protocol is an open and permissionless savings protocol that offers a low volatile yield of ~20% APY on UST (Terra Stable coin pegged to USD). Simply, users deposit UST into Anchor on the Terra Blockchain and receive aUST – a token that is redeemable for the initial deposit + accrued interest. Therefore, interest collection is done just by holding onto aUST.
Why aUST as collateral? Well, currently users can bridge aUST through terra bridge and receive an ERC-20 version of the token on Ethereum. aUST can then be used as collateral on maker to generate DAI, be sold for UST to leverage their interest earning position in anchor.
e.g., UST → Anchor → aUST → Bridge → Deposit into Maker get Dai → Sell for UST → Bridge → Anchor → repeat.
- Provide a brief history of the project.
- Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.
List of all Terra Blockchain Smart Contracts:
Contract address for aUST on ETH:
Contract address for UST on ETH:
- Link any available audits of the project. Both procedural and smart contract focused audits.
Anchor smart contracts: https://anchorprotocol.com/docs/Audit%20Report%20-%20Anchor%20Protocol%20.pdf
- Link to any active communities relating to your project.
Anchor Gov: https://forum.anchorprotocol.com/
Anchor Discord: Anchor Protocol
- How is the applying collateral type currently used?
Currently, the main use case of aUST is on Mirror Finance as collateral to borrow or short mAssets (assets that mirror the price of real-world assets such as stocks etc.). aUST is still widely underutilized and with their recent expansion to aUST on Ethereum I expect protocols to start allowing it as collateral (e.g., abracadabra will be soon)
- Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
Currently, there is no explicit claim for full legal responsibility of the collateral (my findings), however they make a very big effort towards the security of the protocol with multiple audits, bug bounty programs, and additionally, users are able to purchase smart contract and UST peg insurance through a range of insurance protocols (i.e., Nexus Mutual, InsurAce, Bridge Mutual and Unslashed). Furthermore, the company resides in South Korea and lists Do Kwon and Daniel Shin as their only two employees (Anchor Protocol - Employees, Board Members, Advisors & Alumni)
- Where does exchange for the asset occur?
Exchange for the aUST occurs on Anchor protocol itself. However, UST is widely available on multiple blockchains.