**I am interested in putting money at Anchor yet the raising cases of disappearing / hacking deposit really worries me. **
May I know what actions did Anchor take to protect our account? Otherwise, people are losing confidence here!
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Part of the ethos of crypto is self-reliance, you have to ensure your own safety, you’re the owner of your wallet keys, don’t give them out to anyone… You’re responsible for what you sign, don’t blindly sign anything… Anchor hasn’t been responsible or is able to do anything to protect the users, I feel bad for people affected but most of the cases I’ve followed could have happened with their bank account.
Crypto technology is still maturing, still requires a degree of extra effort compared to tradfi in safety efforts, but in the end it will be up to the user.
Get an hardware wallet and you’ll be far more protected just because of it.
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On this theme, I use the terrastation wallet linked to my ledger which holds my aUST, but if, worse case, Anchor is drained of the UST deposits - will my aUST be worth anything? It might be secured by my ledger login but that’s pretty irrelevant if it’s worthless.
Am I missing something here?
Nope, you got that right, that’s smart contract risk… your aUST is a receipt but if the pool is drained, there’s nothing to get back. To mitigate this you can get smart contract insurance, Anchor suggests some protocols on the WebApp, you’d be reducing your APY but you’d be covered in that regard.
Another risk is depegging, what if UST loses peg an is now selling at 0.5$? You’d be losing half your value… you can either trust the system in that it will regain peg, or you can also buy insurance for the peg.
I personally don’t have any insurance as I don’t believe UST will lose peg permanently and I have full trust in the current smart contract code.
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There isn’t actually any insurance really available anyway. Unslashed have contract cover + UST peg available which sounds ideal until you see the premium is 18% PA !!!
None of the other providers have had any capacity for months now and probably never will, as soon as anything is available the usual insiders / investment companies will have taken it all before any small investors get a chance.
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Insurance will grow, it’s a slow industry. Just give it time, use Anchor at your own risk.
It’s a reason why I prefer active asset management in Crypto, lots of risk can be reduced with simple due diligence. If your unqualified to do that I would recommend hiring a trust to manage your crypto wealth.
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