Hi Community! I have recently come acros anchor early this year and have started investing and have been following the forum, and all the interersting conversations. I was wondering if anyone is using the the features that appear in anchor to protect deposits and would like to hear about their experience / cost, and anything you’d like to share. Thank you!
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I’m very interested in this topic too. Anchor not providing insurance is a major stumbling block for me to invest further with them.
I’ve checked out all the insurance options and the only one available is Unslashed. However, they charge around 7.5% for their coverage which would make Anchor’s return around 12%. Still not bad, but a rate available elsewhere… including, Nexo, which does provide insurance free of charge.
If anyone know of a way to secure our Anchor accounts from being hacked, I would definitely be interested.
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Dr. Brown,
To date, I have chosen not to insure my Anchor savings. Although I have not looked into it recently, the problem for me was conflict of interest: the community is incentivized to deny any claims to protect the reserve. I’m not saying that WOULD happen, only that I don’t agree with how the mechanics of decision making is structured.
That said, I have heard of algorithmic (i.e. smart contract based) insurance solutions, but I’m not sure if they are supporting Anchor yet or how sustainable they are. But if the net yield for insurance(s) would drop the return to anywhere near 13%, I would shift my savings to USDC over on Crypto dot com where I’ve staked $4000 of CRO to get a guaranteed 12.5% savings rate with a 90 day lock up. USDC is backed 1:1 with USD and equivalents by Circle corp - a fully regulated US corporation.
Not trying to shill anything…Just what I do.
Regards,
Chris
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Thanks for sharing chrisk! Appreciate it
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I was very interested in how to protect my money at Anchor. After repeatedly asking the question, no one was able to give any specific help. And, I didn’t hear a word from Anchor. So, I moved all my assets off of Anchor to Nexo where I’m staking my UST for 15%. I’m happy to take this slightly lower return because Nexo offers $375 Million of insurance coverage for free and store their coins in military grade storage. Anchor is now in my rear view mirror.
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Sorry to hear about paltry (4 - 6 %) interest that crypto.com is now paying for its stablecoins staking.
It’s a bummer but we all knew 12.5% payout at CEFI couldn’t last long.
Anchor protocol will probably do the same…until then, just hanging in there.
competetions getting wonky. imo staking tokens for stablecoin yield is gonna run dry around the same time YR does.
Most insurance is uselss, your better off insuring yourself by not having as much exposure. Risk is so ridiculously high in defi theres no profit once you start insuring.
CDC and other CEX have no insurance on your funds, if they get f’d your not getting your money back either so really we’re just looking at the deposit rate and weather the risk is worth it…
Me personally I don’t touch stables apart from using them to ramp on / off fiat.
I think if you want insured stable yield wait for thorfi, they have a good track record of covering deposits even though its not explicitely stated. It’s the only place I’d be wiling to risk stable exposure.
I also don’t trust big banks either, keep any cash in a credit union cause they’ll f’ you too. smart contract risk = bank heist, usd peg risk = petrodollar peg risk, when the money is gone it’ll be gone and nothing more to it. Insurance is just a blood sucker.
again, also not shilling lol but just my opinion.
looking at the forums I think teams got good direction and are taking careful steps to avoid risk so you should be fine just pocketing the yield.