Binance added ANC and ACA tokens. What about the API3 token?
Binance announced that it would list the 29th project on its Launchpool. Anchor Protocol (ANC) is an exciting savings platform. It offers low-volatile yields on Terra stablecoin deposits. Customers will be able to stake their LUNA, BNB, and BUSD into separate pools to farm ANC tokens over a month. The farming will start on January 26, 2022. ANC token is very trending currently. Its total supply is 1,000,000,000. However, only 213,538,202 ANC (21.35% of total supply) will be circulating at first.
Decentralized Finance has grown explosively over the last few years. Various companies and individual users launched a wide range of financial applications covering a broad range of use cases. The latter includes decentralized exchanges (Uniswap), collateralized lending (Compound), and prediction markets (Augur).
However, despite the early success and a robust influx of both talents and capital, thus far, Defi hasn’t produced a simple and convenient savings product that would have an appeal outside the world of crypto natives. Anchor Protocol’s team believes that for decentralized Finance, the path to mass adoption is creating the savings product.
Anchor offers many benefits as a savings protocol. It accepts Terra deposits, allows instant withdrawals, and even pays depositors a low-volatility interest rate. Moreover, the firm lends out deposits to borrowers who put down PoS assets from various blockchains as collateral to generate some yield. It also stabilizes the deposit interest rate by giving the depositor a variable fraction of the bAsset yield.
The team believes that the provision of a stable interest rate to depositors is a necessary feature of a savings product, especially if it wants to gain a broad appeal. Thus, Anchor strives to overcome one of the main limitations of Compound and Maker as savings products: the cyclical nature of deposit interest rates.
How will Anchor achieve its goal to become number one on the market?
Beyond offering low-volatility yield, the company plans to give the main street investors a single, reliable rate of return across all blockchains. Due to the plethora of staking products, each possessing varying terms and yields, DeFi is often inaccessible and unappealing to average investors. However, Anchor aims to aggregate block rewards from all major PoS blockchains to set the Defi economy’s benchmark interest rate.
The company has a well-developed roadmap to assist with the goal. It plans to start by introducing the concept of a tokenized stake in a PoS blockchain. After that, it will launch the Anchor money market, which will serve as the building block for the savings protocol.
The team will also introduce the Anchor Rate as a benchmark interest rate, along with proposing a mechanism that stabilizes the deposit interest rate at that benchmark. There will be the liquidation mechanism that implements Anchor’s principal protection, as well. Lastly, the company will launch several applications of Anchor money markets.
What is the bAsset, and how does Anchor use it?
One of the company’s core primitives is the bAsset – bonded asset. The latter is actually a tokenized stake on a PoS blockchain. A bAsset is a token representing ownership of a staked PoS asset.
It pays the holder block rewards like the underlying staked asset. But unlike the staked asset, a bAsset is both fungible and transferable. As a result, customers will be able to transact with bAssets as easily as the underlying PoS asset.
Furthermore, a bAsset allows its holder to earn block rewards while simultaneously maintaining the liquidity and fungibility that staked assets usually forego. Thus, bAssets are broadly usable. Customers can generate them on any PoS blockchain that supports smart contracts. According to the team, bAssets are a central component of Anchor protocol.
What about ACA and API3 tokens?
Binance stated on Tuesday that it would list Acala (ACA) tokens on its platform. The exchange will also open trading pairs for ACA/BTC, ACA/USDT, and ACA/BUSD. This network is an EVM-compatible Defi smart contract platform. It operates as a Polkadot parachain and has strong potential. ACA is the native token of the platform. Token holders can use it to mint stablecoins and pay transaction fees, as well as participate in governance, or earn rewards through staking and liquidity mining.
API3 token is also available on the Binance platform. The latter opened trading for API3/BTC, API3/USDT, and API3/BUSD trading pairs on January 21, 2022. API3 is a data oracle. It enables APIs to feed data to blockchain applications directly without engaging any third-party middlemen. API3 is the project’s native governance token. Users can stake it to receive rewards. The token also acts as collateral to provide a security guarantee on the data feed.
The Airnode team noted that first-party oracles are the next-generation technology enabling access to off-chain data. This project aims to lead the movement from legacy third-party oracle networks to first-party oracle solutions. The latter delivers more security, efficiency, and data-source transparency.
Moreover, Beacons allow smart contract developers to connect Web3 applications to continuously updated streams of off-chain data. Operated by the Defi market’s most trusted and reliable data providers, Beacons are a cost-efficient, transparent, and scalable way for smart contracts to interact with the off-chain data they need.
Meanwhile, data feeds bring globally identical data streams to smart contracts. However, for Web3 to thrive, it needs off-chain services and context-specific APIs, as well. Airnode delivers both by allowing users to call Web APIs directly from smart contracts.
Why is this project important?
Web3 offers the biggest growth opportunity for businesses since the world wide web. Unfortunately, it’s been a bit difficult for traditional businesses to access. The API3 Alliance aims to change that.
The company noted that Airnode is Web3 middleware, connecting Web APIs directly to smart contracts. Thus far, Blockchain-based Web3 applications have had limits as they couldn’t use real-world data and services. But Airnode is the standardized API connectivity protocol with the goal to solve the Web3 accessibility problem. Open source and effortless, this platform provides an easy path to Web3.
The API3 token is the fundamental unit of this project, though. Staking these tokens will grant users voting power in the API3 DAO. As a result, they will be able to participate in governance, steer the project’s direction, and allocate resources. Users will also earn weekly rewards.
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