Anchor Protocol
Crypto Overview
Overview
Anchor Protocol was a decentralized money market protocol built on the Terra blockchain that allowed users to earn yields on deposited stablecoins and borrow against crypto collateral. The protocol ceased operations in May 2022 following the collapse of the Terra ecosystem.
Purpose and Utility
The intended purpose of ANC token was to serve as a governance token for the Anchor Protocol, allowing holders to participate in decision-making regarding protocol parameters and treasury management. It also provided incentives to borrowers and lenders using the platform.
Business Model Analysis
The core business model revolved around lending and borrowing activities, with interest being charged on loans and distributed to depositors. This fundamental model conflicts with Islamic finance principles as it involves riba (interest-based lending).
Platform Activity and Development
The protocol is no longer operational following the Terra/LUNA collapse in May 2022. The ANC token has essentially lost all utility and value, with no active development or legitimate use cases remaining.
Token Distribution and Governance
Historical token distribution included allocations to the community, team members, and protocol treasury. However, this information is now largely irrelevant as the protocol is defunct.
Crypto Impact
To assign a comfort level investing in Anchor Protocol from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Anchor Protocol.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.