Chill Guy is a viral meme illustration that took social media by storm before a crypto project used the meme to launch a Solana-based token. Learn more here.

What started as a simple illustration of a laid-back dog has become a global meme sensation, with the cartoon character known as Chill Guy dominating both social media trends and cryptocurrency markets. Created by artist Phillip Banks in October 2023, the easygoing canine character sparked a viral movement that has attracted major brands worldwide.

This article follows Chill Guy’s transformation from a social media sensation to a cryptocurrency asset. We'll examine its viral beginnings, community growth, market impact and what potential investors can expect from CHILLGUY in the future.

 is a viral meme illustration by artist Phillip Banks, depicting a laid-back dog in casual clothes whose easygoing attitude took social media by storm before a crypto project used the meme to launch Just a Chill Guy as a Solana-based token.

What Does Just a Chill Guy Aim to Achieve?

The CHILLGUY meme coin aims to spread a "Why worry?" philosophy into cryptocurrency markets by embracing the laid-back, stress-free attitude that made the original meme go viral. The project transforms this easygoing vibe into a community-driven token, where being low-key isn't just a catchphrase — it's a shared mindset among holders.

The CHILLGUY community brings this philosophy to life by sharing endless variations of the CHILLGUY meme across social platforms. Through market swings and viral trends, CHILLGUY keeps his iconic pose: hands in pockets, subtle smirk, perpetually relaxed.

Just a Chill Guy (CHILLGUY) operates as a Solana Program Library (SPL) token on the 

 blockchain, leveraging the network's ultrafast speeds and low costs to ensure smooth trading. The token was created using Pump.fun, a specialized platform that lets users launch Solana-based tokens without any fees, removing traditional barriers to token creation.

CHILLGUY is a community takeover (CTO), meaning it's completely owned and directed by its token holders with no central team in control. This decentralized structure ensures the project stays true to its community-driven nature, its holders collectively guiding its future while embodying the laid-back spirit of the original meme.

The CHILLGUY token launched with a maximum supply of 1 billion tokens, of which 999,965,435 are currently in circulation. This near-complete distribution of tokens to the market supports active trading and community participation.

What makes CHILLGUY's tokenomics particularly notable is its widespread distribution across more than 142,000 unique holders (as of Nov 27, 2024), achieved in just 12 days. This rapid expansion of its holder base demonstrates strong community adoption and aligns with the project's decentralized, community-driven principles.

CHILLGUY has exploded across social media, especially on TikTok, where the meme has amassed hundreds of millions of views. Its laid-back character resonates with users worldwide, inspiring countless creative adaptations.

Major brands worldwide have embraced CHILLGUY in their marketing campaigns. From Sprite Europe to NFL on CBS, the character has resonated across mainstream media, even catching the attention of global figures like El Salvador's president Nayib Bukele.

The “Chill Guy” meme’s influence spans multiple social media platforms, with a growing community of followers: 96.6K on X (

). On the other hand, the meme token itself also has a vast community, with 39.9K on X (

) and an active Telegram channel of over 15,000 members. These numbers reflect the meme's ability to engage audiences across different platforms.

The token's popularity in cryptocurrency markets matches its social media success, with CHILLGUY maintaining a substantial 24-hour trading volume of over $330.03M as of Nov 27, 2024. This high trading activity demonstrates the strong market interest in CHILLGUY beyond its meme status.

Looking to trade Just a Chill Guy tokens? Bybit now offers the CHILLGUY/USDT Spot trading pair and CHILLGUYUSDT Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While CHILLGUY has maintained strong trading volumes and continues gaining mainstream attention through its viral social media presence, investors should carefully weigh its strengths and risk factors before making investment decisions.

With its widespread brand adoption, sustained trading activity and explosive community growth of over 142,000 holders, CHILLGUY demonstrates significant market potential. However, meme coins are inherently volatile. Potential investors should 

 and invest no more than they can afford to lose.

CHILLGUY is the latest viral sensation to harness the power of the attention economy to convert social media momentum into crypto market success. While CHILLGUY has already demonstrated its ability to capture mass appeal, its position as a leading meme token will depend upon how effectively it maintains its cultural relevance and community engagement in this fast-moving market.

Intermediate

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Just a Chill Guy (CHILLGUY): Embracing the Art of Nonchalance

Zircuit (ZRC) combines optimistic and ZK rollups with AI-driven security, offering fast, low-cost Ethereum Layer 2 solutions. 

 network has flourished, mainly due to the ongoing network congestion, high fees and poor scalability of the latter. Many of these platforms use rollup technology, whereby batches of multiple transactions processed off-chain are bundled together and posted in bulk to the underlying Layer 1. Ethereum-linked rollups mainly come in two varieties 

 (ZK). While optimistic rollups boast lower computational overhead, the ZK variety of these networks features a higher degree of security.

Zircuit (ZRC) is a Layer 2 chain that adopts a hybrid approach, combining the elements of optimistic and 

. This lets the platform offer the performance benefits of optimistic technology along with the security of ZK validity proofs. To further enhance overall security, Zircuit uses a unique 

 (AI)–driven system of monitoring for malicious transactions.

 (ZRC) is a hybrid Layer 2 blockchain that combines the features of optimistic and ZK rollups, and uses AI-driven monitoring for potentially harmful transactions. 

 rollup development technology, a popular framework for building optimistic rollup networks. Additionally, it uses zero-knowledge proofs, which lets the platform offer the best of both worlds 

 the performance benefits of optimistic rollups and the security of ZK technology. Zircuit is 

The Zircuit project takes security very seriously, and has introduced a unique system of AI-based protection against malicious transactions at the sequencer node level. The use of ZK proofs and an AI-based protection system make Zircuit one of the most secure platforms in the competitive world of Ethereum Layer 2 chains.

Along with its excellent security benefits, Zircuit also boasts low costs, fast transactions, excellent scalability and 2-second block production intervals. All these features make it an ideal environment for 

 (DApps) in various niches, particularly 

 (DeFi). In fact, the leading protocols within the Zircuit ecosystem are all dedicated to the finance niche, with Zircuit Staking being the largest application by TVL.

With its heavy focus on DeFi, Zircuit aims to become a leading liquidity hub for various token types within the sector, including 

. These assets can be staked through the Zircuit staking program — supported by the platform's Liquidity Hub — to earn staking APRs, airdrop rewards and points based on the Zircuit Point program (covered further in our article).

The platform also operates a secure native bridging solution, 

, to help users transfer assets between its Layer 2 network and Ethereum Layer 1.

The company behind the project, Zircuit Ltd., was founded in 2021 in Canada by Dr. Martin Derka, Jan Gorzny and Angel Xu. Zircuit's testnet was launched in November 2023, but made headlines in April 2024 when the project reported that its 

 (TVL) had soared past $2 billion. While testnet TVLs are more a gauge of future potential for a blockchain than an indicator of its existing worth, the news attracted the attention of industry observers toward the platform. Following its highly publicized testnet success, Zircuit launched the first phase of its mainnet in August 2024. This was followed by the launch of the platform's native token, ZRC, in November 2024.

As a typical rollup, Zircuit uses an off-chain sequencer node to batch and organize Layer 2 transactions for subsequent posting to the underlying Ethereum Layer 1. The batches have ZK validity proofs attached to them to signal to Layer 1 validators that they’re free from fraudulent transactions. Zircuit's architecture also includes prover nodes, whose job is to produce these validity proofs.

However, unlike other rollups using ZK proofs (also known as validity proofs), Zircuit doesn't generate validity proofs for every block of transactions. Instead, some blocks have pre-generated template proofs, while others go through the process of having a dedicated validity proof created for them. After a few blocks featuring validity proofs, there are several more that utilize template proofs. The image below illustrates this approach.

The key reason Zircuit has adopted this form of proof design is that the process of generating ZK proofs is computationally intensive. By using template proofs for some of the blocks in a sequence, Zircuit can reduce the overall computational overhead. However, the project’s team has stated that the template proof model is temporary, and will be phased out in the future. At that stage, the platform will move to generating ZK proofs for each block.

Zircuit features a highly modular design whereby provers — responsible for generating validity proofs on the platform — can easily be plugged into or removed from the network. This modular approach is distinct from the standard ZK rollup design, in which provers are more tightly and less flexibly integrated into the overall architecture.

As noted earlier, Zircuit uses a dedicated sequencer to organize and batch transactions into blocks. The platform also applies AI-driven monitoring at the sequencer level (the Sequencer Level Security, or SLS) to spot and exclude fraudulent transactions before they’re finalized on Layer 2.

When transactions are first posted to Zircuit, they enter the 

 — a temporary area from which the sequencer picks and organizes individual transactions into blocks. The mempool is being monitored at all times, using AI algorithms to identify suspicious transactions. If a transaction in the mempool raises a flag, it's quarantined and assessed for validity before the sequencer can include it in a block. The image below shows how this process works.

One of the distinct features of Zircuit is its hybrid architecture, which combines the properties of optimistic and ZK rollups. At the base level, Zircuit is built using Optimism's Bedrock development framework, a technology popular for optimistic rollup networks. However, the use of ZK proofs — or, to be more precise, a combination of validity proofs and template proofs — ensures that Zircuit enjoys a security level that standard optimistic rollups normally can't match.

The use of AI-based SLS provides robust security to Zircuit, complementing the already highly secure ZK proof system. Very few Layer 2 networks in the industry currently feature anything similar, making the platform a true pioneer of AI use for sequencer-level operations.

Like any rollup based on Optimism Bedrock, Zircuit enjoys EVM compatibility. This allows for smooth interoperability with the underlying Ethereum Layer 1. EVM compatibility also makes it easy for developers familiar with Ethereum’s environment to develop Zircuit-based DApps, or to port existing Ethereum applications to the platform. Developers can take advantage of technologies commonly used for Ethereum (e.g., the Solidity programming language and the Hardhat development framework) to build Zircuit applications and smart contracts.

Zircuit Bridge is a native bridging solution designed to easily transfer tokens between Ethereum and Zircuit. It boasts high security, low transaction fees and fast transfers, and allows users to move a variety of cryptocurrencies between Ethereum and Zircuit, including ETH, 

) and LRTs like Super Symbiotic LRT (weETHs). As of late November 2024, the total number of cryptos supported by the bridge is close to 30.

Zircuit has launched a reward program called Zircuit Points. Users can earn these Points by staking supported assets, and by participating in the Build to Earn initiative (more on this below). Accumulated points will be converted to ZRC tokens in the future. Points also create the opportunity to qualify for token airdrops.

The primary way for most users to earn Zircuit points is via 

. The Zircuit Staking program lets you stake LSTs, LRTs, popular stablecoins, some wrapped tokens and Ether (ETH) to earn points. Using LSTs and LRTs, you can earn yields (along with native Zircuit staking APRs and Points) from the respective staking and restaking platforms that issue these assets.

Zircuit Points earned via staking have different multipliers, depending upon the asset. For example, Ether has a multiplier of 0.5, while LSTs, LRTs and stablecoins have a multiplier of 1. Multipliers for different LST and LRT assets may be subject to change in the future.

Build to Earn is another way to qualify for Zircuit Points. The program allows developers to contribute to the Zircuit ecosystem and earn Points in a number of ways, including:

Launched in November 2024, ZRC is the platform's native cryptocurrency. It's an 

 asset deployed on both Zircuit and Ethereum Layer 1. ZRC is mainly used for reward distributions, and participation in token airdrops for ecosystem DApps. Currently, transaction fees on the network are paid in Ether. It's possible that, in the future, ZRC might be used for some transaction fee payments.

ZRC is also used for rewards under the Gas Rebate program. As users conduct transactions on the platform, they 

. Zircuit’s Gas Rebate program provides rebates to offset some of the incurred fees. The amount of ZRC earned as a rebate is proportional to the amount spent on gas in ETH; the project's documentation states that for each ETH spent on gas, the user earns 125% in ZRC. All kinds of gas fee payments qualify for the rebate, including ordinary asset transfers and transactions involving interaction with Zircuit DApps.

ZRC is a supply-capped token, with a maximum and total supply of 10 billion. The token's supply allocation shares are as follows:

The ZRC token is available on Bybit's Spot market as a swap pair with USDT (

 to grab a share of the 5 million ZRC prize pool. New users who sign up for a Bybit account and complete identity verification can earn ZRC rewards by accumulating a deposit volume of at least 2,000 ZRC, or by depositing 100 USDT and trading 100 USDT worth of ZRC via their first trade with Bybit. 

Meanwhile, existing users can qualify for ZRC rewards by trading at least 500 USDT worth of ZRC on the Bybit Spot market, with the possibility of earning up to 10,000 ZRC based on trading volume. The 

 event will run through Dec 10, 2024, 8:59AM UTC.

Zircuit is among the pioneering Layer 2 platforms to adopt a hybrid design for a rollup network. Thanks to the platform's architecture, users can take advantage of low transaction costs, fast transfers and great scalability while enjoying the benefits of high security delivered by ZK proofs and AI-driven mempool monitoring. AI-based monitoring for fraudulent transactions is a particularly notable feature of the platform and is undoubtedly among the most advanced technologies employed in the blockchain industry.

User security combined with faster and cheaper transactions for the Ethereum network — all in one package — is now feasible, thanks to Zircuit's innovative technology and unique approach!

Advanced

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What Is Zircuit (ZRC): Where Performance Meets Cutting-Edge Security

Bybit is celebrating its sixth anniversary with the #Super6Bybit event, offering a $1.2 million prize pool and focusing on its bbSOL token.

Daily Top Performer — Virtuals Protocol (VIRTUAL)

On Wednesday, the S&P 500 fell 0.38% as tech stocks dropped and inflation data reinforced a hawkish Fed outlook. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.40%, with Bitcoin and Ether dropping by 1.86% and 1.79%, respectively in the past 24 hours.

Today's top performer is VIRTUAL, which surged 53.6% following the launch of the $MUSIC token by Agentstarter, featuring AI-driven music video capabilities and community-focused tokenomics.

Virtuals Protocol (VIRTUAL), founded in 2021, allows users to invest in and co-own AI-driven virtual assets like companions and influencers. Its model fosters community ownership, transforming AI agents into revenue-generating assets across platforms like Roblox and TikTok. The platform attracts contributors from AI and gaming to drive innovation in virtual economies. 

, using AI to create music videos and offering features like animated videos, voice mimicry, and karaoke tracks. The tokenomics allocate 60% for airdrops, 20% for liquidity, and 10% each for the development team and Virtuals Protocol.

Check Out the Latest Prices, Charts, and Data of 

Bybit is celebrating its sixth anniversary with the 

, offering a $1.2 million prize pool and focusing on its bbSOL token. Launched in September 2024, bbSOL is the first exchange-backed Liquid Staking Token on Solana, providing liquidity and staking rewards. The campaign, running from November 28, 2024, to January 6, 2025, invites participants to build, transform, and supercharge their bbSOL through tasks, leaderboards, and community milestones, increasing rewards. The event combines gaming mechanics, community engagement, and opportunities to win prizes while promoting innovation and growth in the crypto space.

Yesterday, there were no flows in BTC Spot ETFs, including GBTC and non-GBTC categories.

. Stake BNB on Lista's portal to get slisBNB, then deposit it into Astherus to earn airdrop points with multipliers (3X for Lista, 1.15X for Astherus). No lockup is required, and slisBNB is the most efficient option.

Beginner

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Bybit Celebrates 6th Anniversary with $1.2M Prize Pool and bbSOL Supercharging Campaign

Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, and futures, options and perpetual contracts.

ETH has outperformed, bolstered by SEC Chair Gary Gensler's announcement of his Jan 20, 2025 departure, and suggested by growing open interest in ETH perpetual. This positive momentum extends to several large-cap altcoins previously scrutinized by the SEC, as indicated by bullish funding rates for long positions.

Please check out the report’s highlights.

ETH Open Interest Grows While BTC’s Declines

ETH is outperforming BTC following the announcement of SEC Chair Gary Gensler’s departure, as evidenced in perpetual swap markets. BTC open interest has decreased from last week's highs, while ETH contracts have increased. Additionally, ETH trade volumes constitute a larger share of daily trading as compared to much of the past six months, despite an overall dip in trade volumes this week. The gradual decline in BTC open interest, without a surge in trading activity, indicates a strategic repositioning, rather than a wave of liquidations.

BTC Option Curve Inversion Deepens as Price Retreats

The pullback in the spot BTC price from the $100K target has led to a flat ATM volatility term structure, with short-tenor options dropping below 60%. 

This trend continues the correlation between term structure inversion and BTC spot price returns observed since the U.S. election on November 5, 2024

. The decline in front-end volatility aligns with lower realized volatility levels. While demand for short-tenor options has moderated, there hasn't been a notable change in open interest for calls or puts. Instead, their growth has stalled at the week's start.

Sentiment in ETH options markets seems moderately more bullish than in BTC's during the recent decline in momentum from the post-election rally. Call options lead in both trading volumes and open interest. 

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Nov 27, 2024): Signal on ETH Outperformance Against BTC Surfaces on Long-Term Contracts

Investing

Staking

Want close to 20% yield for staking stablecoins? Read on as we cover everything you need to know about Anchor Protocol and ANC tokens.

As with any type of investment portfolio, diversification is essential if you want your crypto portfolio to be balanced. By making sure that your portfolio is properly balanced and diversified, you’ll be able to protect against any unforeseen losses. If your current crypto portfolio is focused almost entirely on risky investments, one sharp decline in a single investment could lead to widespread losses if your other investments have yet to pan out.

On the other hand, having safe and steady investments in your crypto portfolio allows you to accrue consistent income that can mitigate any losses on riskier investments. With a diverse portfolio, it will also be easier for you to make gains in both bull and bear markets.

Even when the market is in a downturn and performing poorly, a diverse portfolio will provide you with at least small gains while you wait for the market to improve. This article takes a look at Anchor Protocol, Anchor crypto and why it’s the ideal staking protocol if you want to obtain safe yields.

Anchor Protocol is a popular savings protocol that’s based around the Terra blockchain. The Anchor Protocol coin (ANC) provides users with low-volatility yields of just under 20% when taking the Anchor Rate into account.

 and initially launched in March 2021. It was created in part to boost the overall demand for UST. Keep in mind that UST is the USD-pegged stablecoin from Terra. When the Anchor Protocol coin was first introduced, deposits could only be made in UST. However,

 was soon launched with the assistance of 

Users are now able to deposit various stablecoins based on Ethereum, which include BUSD, USDC, Dai and USDT. Yields for UST typically range from 19.5–20.5%, and revolve around the Anchor Rate, which is maintained by the platform. If you deposit other stablecoins, your yields would be around 16.5%. Even though these yields are high, they’re consistent, which makes this a great investment if you need to diversify your crypto portfolio. Once you place your money into Anchor Protocol, you’ll be able to borrow and lend your assets while earning interest on any of the currency you’ve deposited. This ultimately opens up possibilities for even higher yield as you explore various liquidity pool options. Curious about exploring this staking opportunity? Read on as we cover the fundamentals of how Anchor Protocol works.

Anchor Protocol runs on three primary mechanisms, which include loan liquidation, bonded asset (bAsset), and money market. A bAsset is a tokenized stake that’s situated on a 

 (PoS) blockchain. If you have a bAsset token, it effectively displays ownership of a PoS asset. Just like the underlying asset that you’ve staked, holding a bAsset will give you access to block rewards.

The main difference between a bAsset and a staked asset is that the bonded asset is fungible and transportable. What this means is that transactions can be completed with the bAsset in the same way that you would use the underlying asset to perform transactions.

Keep in mind that it’s possible for bAssets to be made on any PoS blockchain that’s equipped to handle smart contracts. In the time that Anchor Protocol has existed, bAssets have proven to be a key component of the platform because of how they are able to deliver consistent interest rates to any Terra deposits.

The money market that exists within Terra is a 

 smart contract that’s present on the Terra blockchain. This market facilitates borrowing and depositing of Terra stablecoins. As mentioned previously, the Terra stablecoin is UST. It’s important to understand that the money market acts as the foundation for the Anchor Protocol. Terra deposits are brought together to form a pool, which generates interest from any loans.

If you want to borrow from this pool, you’ll be tasked with using some of your digital assets as a form of collateral. The interest rate that’s generated from the pool of Terra deposits is calculated based on the current demand and supply from borrowers. You can determine what this rate is by looking at the current utilization ratio for the pool.

It’s possible for someone to take out a loan via the Terra money market by securing the right amount of collateral that can be provided in return for the loan. The interest rates for the depositor and borrower are based on an algorithm that’s maintained by Anchor Protocol. With this algorithm, interest rates for a loan are generated based on the current availability and borrowing demand.

Anchor Protocol has an interest rate objective that’s known as the Anchor Rate. In order for the desired Anchor Rate objective to be reached, the smart contract will intuitively divide the block rewards from the bAssets that are serving as collateral. These rewards are divided between the depositor and the borrower.

Rewards are liquidated into UST, which provides depositors with the ability to obtain deposit yields that reach as high as 20%. Keep in mind that the two bAssets that are currently recognized by Anchor Protocol include bETH and bLUNA. These assets are liquid, and can be used to borrow UST.

Is Anchor Protocol Sustainable at Such High Yields?

With a yield that’s as high as 20%, many potential users wonder about the sustainability of Anchor Protocol. While these yields are high and practically unheard of even with stablecoins, the yields are possible because of how Anchor Terra is structured. The Anchor Protocol coin is feasible because of its ability to accept bAssets as a form of collateral.

Since users who hold bAssets will obtain a constant yield via staking, the protocol itself receives a nearly constant stream of income, which incentivizes the use of this protocol. Along with the staking return that’s generated from any deposited bAssets, Anchor also obtains income from all of the interest that a user will be tasked with paying when they take out a loan. Since Anchor is able to bring in two income streams at the same time, the protocol can maintain its 20% yields, which are paid to UST depositors.

In the long run, however, there is a potential downfall to Anchor Protocol. Whenever the money market is deficient and is unable to make enough payouts during the year, Terra must take money from its own yield reserve. At current Anchor rates, Anchor Protocol is expected to have a deficiency of just under $9 million per year.

While the yield reserve grew temporarily in November 2021 because of an increase in staking earnings, it isn’t expected to grow for long. Since November, the deposits have continued to exceed earnings, which means that the yield reserve is being pulled from on a near-continual basis. The Terra yield reserve is currently at around $35 million, which has been cut in half since early December.

Keep this issue in mind before you invest in Anchor crypto. Even though there are steps that Terra could take to resolve this problem, it’s possible that your yield would decrease. Even though a small decrease in yield can be navigated in most situations, this drop could be the difference between making gains for the year or reporting losses.

While Anchor Protocol provides consistent yields of 20% that you can depend on because of the Anchor Rate, it begs the question – is Anchor Protocol safe? Overall, there are still some risks for you to be aware of even if you’ve been involved with the Terra ecosystem for a long time. These risks include everything from UST de-pegging to a potential crash in yields. While some of the following risks are unlikely to occur, it’s important to take into account their possibility so you’re aware of the risk you’re undertaking as an Anchor Protocol investor.

Because the value of UST is determined based on an algorithm — and is backed solely by the value of LUNA — it’s possible for the conversion ratio to differ from 1:1 in particularly volatile markets, which may make your Anchor crypto investment less stable than it should be. In order for UST to return to $1, LUNA will need to be burned for UST, which means that fewer LUNA will be available for selling.

Even though UST has remained relatively stable, it’s only been around since late 2020, which means that it hasn’t been tested extensively during volatile market conditions. During its brief existence within the Terra ecosystem, UST has encountered two notable drops in value, the worst of which occurred in December 2020 when it lost around 15% of its value before it recovered.

Even though the Terra ecosystem currently seems strong, there’s always a possibility that UST could drop in value and never recover. Another USD-pegged coin known as IRON saw its value drop to zero in 2021, even though it was officially backed by USDC. Although UST could potentially crash, the value of IRON dropped because the only use for this coin was yield farming. In comparison, UST is spread throughout the entire Terra ecosystem and is part of 

The main risk with decentralized finance involves human error, which could lead to successful attempts at hacking the platform. If Anchor Terra were hacked, the protocol and users could be at risk. Anchor Terra strives to mitigate this risk by performing regular security audits and by putting out an effective Bug Bounty Program.

The Bug Bounty program provides hackers who act in good faith with the ability to test Anchor Protocol for the purpose of detecting bugs. The broader Terra ecosystem offers anywhere from $500–$150,000 whenever a bug is discovered and reported, which incentivizes hackers to continue acting in good faith.

As for the security audits that occur with Anchor crypto, Terra has hired two audit companies to make sure that the protocol remains safe for all users. These companies perform audits on a regular basis to detect any security issues that might exist.

While Anchor crypto and the Terra ecosystem as a whole are strong platforms that make for sound investments, you can’t completely eliminate the possibility of a crash in yields. When an imbalance in borrowers and lenders occurs, the yields can fluctuate and put the entire system at risk.

In the event that the crypto market drops substantially in a short period of time, the individuals who have borrowed money from Anchor Terra are possibly at risk of losing all of their collateral. When the loans are liquidated, borrowers won’t be paying interest to the depositors, which places a considerable amount of pressure on the interest rate.

As mentioned previously, there’s always the possibility that the yield reserve could be depleted, which means that the 20% Anchor Rate couldn’t be paid to those who’ve deposited their assets. If this reserve ever runs out and isn’t subsidized by the Terra ecosystem, problems would likely occur immediately. Because yield reserves could be depleted, it’s important that you always keep an eye on the Anchor Protocol coin and its value.

Before you start worrying too much about your Anchor crypto investment, it’s important to understand that there are several things Terra can do to fix this issue. For one, Terra could inject money into the yield reserve, which they already did once in 2021. While this injection would eventually run out, it would allow depositors to continue receiving the 20% interest rate that they’re owed from investing in Anchor Terra. However, UST is currently worth well over $10 billion, which means that it’s unlikely that another injection by Terra will occur anytime soon.

Another solution that’s much more likely to occur is for Anchor Terra to reduce the yields that depositors receive from staking their assets on the platform. Even though the yield reserve has dropped quickly over the past few months, reducing the yield rate to 15–16% would likely allow expenses and income to break even. Since the average yield for a stablecoin is between 10–12%, a 15–16% yield with Anchor crypto would still be higher than most alternatives.

Now that you know about the risks that exist with Anchor crypto, it’s important to understand that you can mitigate these risks by purchasing Anchor Terra insurance plans. Crypto insurance has become increasingly sought after in these volatile times. Thus, Anchor Terra has partnered with third-party insurance providers who offer plans for the purpose of reducing the risks of de-pegging and smart contracts. Insurance can be purchased by effectively lowering your annual yields.

Even though the premium price for an insurance plan differs with each insurer, the average price is around 7.3% per year. Keep in mind that the insurer determines how much they pay out in the event that you file a claim, which means that there’s a risk the payout could be lower than you’d like. However, these insurance plans are a great way to lessen the amount of risk you take on when you invest in Anchor crypto, diminishing risks of fears of depegging and DeFi hacking.

If you’ve decided that you would like to invest in Anchor Protocol, there are some basic guidelines to be aware of. First, you’ll need to purchase LUNA currency, which can be done on Bybit by seeking out the 

. Once you’ve purchased the amount of LUNA that you would like to invest in the Anchor Protocol coin, you’ll then need to withdraw LUNA and send it to your Terra Station wallet, which is fairly straightforward.

From here, you’ll want to connect your wallet to the Anchor Protocol app, after which you’ll have the opportunity to deposit your LUNA assets to start earning yield. Because Anchor Protocol provides you with a safe yield, you won’t need to manage your investment once it’s been made. If you have yet to diversify your investment portfolio, the Anchor Protocol coin should help you provide your portfolio with a solid foundation that allows you to make crypto gains even when other investments aren’t performing as well.

Investing in Anchor Protocol coin is currently a great way to diversify your portfolio if you’re part of the Terra ecosystem. Because the Anchor Rate for this protocol is high, you can be confident that you’ll be provided with consistent returns. However, there are also some risks that you’ll need to take into account before investing in Anchor crypto. With the potential crash in yields, as well as the ever-present DeFi hacking risk, any investment you make in the Anchor protocol coin must be well-researched and monitored accordingly.

Is Anchor Protocol the Best Defi Staking Protocol for Safe Yields?

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards