I would love to invest more into anchor if it was fdic insured. Couldn’t an fdic insured bank invest in anchor on our behalf so by investing in that bank we would have fdic insured anchor investments
You know FDIC insurance has only about $64B of funding for trillions of US retail deposits?
Also if what Kraken exchange has stated it is only there to cover back run situations where fractional reserves lead to the bank having less actual cash than it claims it has to depositors.
That’s actually normal operating procedure for retail banks - it is how they make lots of money. But for products like Anchor not really, there’s no fractional reserve, no making money out of thin air. Kraken has applied for a banking license and will offer banking services to its customers but no FDIC insurance - because all its deposits will be 100% collateralised with real assets.
So to me FDIC insurance would be meaningless for Anchor not to mention impossible to obtain because Anchor is not a bank.
However… There are insurance protocols that are supporting more and more DeFI and CeFi offerings as an annual percentage on your deposits. Look up Nexus Mutual and Armor. So far they cover Ethereum based DeFi only (that I’ve seen) but I fully expect them to cover many other protocols on non Ethereum blockchains eventually.
What is coming - Ozone - Built by Terra - is WAY better than FDIC! Realize that.
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Where can we learn about Ozone? It has to be reasonably priced for mass adoption to occur. Nexus charges 20% and your Apy is 20%. This can’t happen for mass adoption.
This is going to be amazing! I can’t wait. I think it will really draw people that are hesitant into the network. Most of the people I talk to ask the same thing: who insures my money?