Anchor Protocol Developer Reveals The Shocking Secret That Caused The Terra Disaster

An Anchor Protocol developer has just made “shocking” revelations about the story behind the fall of Terra (LUNA).

Anchor Protocol reveals shocking secret

Specifically in an interview with Korean media outlet JTBC earlier this week, a core developer of the Anchor Protocol said that in fact Anchor was originally designed to only provide interest rates 3.6%, however that quickly changed to 20% just a week before the platform was officially launched to attract more investors.

“I didn’t know it was happening with such high interest rates. Set to 20% just a week before release.”

Because this developer claims an initial interest rate of 3.6%, it will play an important role in keeping the Terra ecosystem stable because it is closely related to the funds available in the reserve fund. by Anchor.

However, another unexpected piece of evidence revealed by the developer is that when the developers found out that the plans had been changed, they tried to resolve the issue with the founder Terra Do Kwon shortly before Anchor Protocol launch date.

“We suggested to CEO Do Kwon that interest rates be lowered, but he did not accept this.”

And what has come has come, the “absurdity” in Anchor’s interest rate supply model quickly collapsed, wiping away more than 1 billion USD in just one week on the protocol and becoming one of the main reasons why the interest rate supply model is very low. to the LUNA-UST crisis that covered the “darkness” of the market during May 2022. Recently, Anchor Protocol also encountered an oracle problem that led to bad debt on the project.

In addition, the serious decline of Terra immediately attracted the Korean authorities to step in. The Financial Services Commission and the Financial Supervisory Authority – the two leading financial regulators in Korea, had to re-create the financial task force “Death” to investigate Terra. Even the Korean police want to freeze the assets of the Luna Foundation Guard – the organization that burned up to 3 billion USD in Bitcoin in just three days in the hope of saving Terra but still failed.

About CEO Do Kwon personally, he is in the process of being summoned to testify before the National Assembly of Korea by a proposal from congressman Yun Chang-Hyun. Not only that, Mr. Do Kwon also has to prepare to face a wave of fierce lawsuits from Korean investors.

Despite this, the Terra co-founder still managed to revive the project on August 28 by creating a new blockchain called Terra 2.0. However, the obsession may not be “let go” for the crypto community because recently there have been a lot of speculations showing that CEO Do Kwon is building a new algorithmic stablecoin on Terra 2.0.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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