The Wu blockchain took to Twitter, explaining that the initial interest rate of the Anchor protocol was initially 3.6% until Do Kwon rejected it. Then, the Terra founder bumped the interest rate to 20% one week before deployment.
According to the report, Do Kwon, Terraform Labs Co-Founder and CEO decided the price to be at that rate to attract more investors.
Mr. B., the protocol’s core developer, even added that the 3.6% returns were relatively high. Still, he chose to put it at that amount to be much higher than what mainstream banks and other financial institutions are offering. This ROI value stabilizes the blockchain as it stores the Anchor protocol’s available funds.
He also noted that the ROI was reduced because the platform initially didn’t have so many funds to pay returns to its investors.
Mr. B. also stated that he suggested to Do Kwon that the ROI should be reduced, but Kwon refused in 2019. Kwon said that if the firm cannot pay the 20% ROI to its investors, LUNA may...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...