a overall look into various non-ETH bridges probably, cause people like me have assets in other chains like Terra, Polygon, BSC that I would love to transfer over to newer chains like Solana, Avalanche , 'and the bubble, stay safe out there'
hmmm... wondering about nexo/celcius/blockfi vs Anchor for stables... seems like the protocols give higher rates but at greater risk than the "centralized" defi sites, nexo/cel etc..
If you are a US citizen with no accredited investor status your options for yield in the centralized platforms is getting smaller and smaller thanks to the SEC. Defi protocols will be the only options left if you can handle the risks.
That was exactly my thought, on their terms and conditions it states over and over how terra isn’t even the owner of the protocol and exclaims over and over again it does not have fiduciary responsibility. “14. Assumption of Risk By accessing and using the Interface, you represent that you understand the inherent risks associated with using cryptographic and blockchain-based systems, and that you have a working knowledge of the usage and intricacies of digital assets. You further understand that the markets for these digital assets are highly volatile due to factors including (but not limited to) adoption, speculation, technology, security, and regulation. You acknowledge that the cost and speed of transacting with cryptographic and blockchain-based systems are variable and may increase dramatically at any time. You further acknowledge the risk that your digital assets may lose some or all of their value while they are supplied to the Protocol. If you borrow digital assets from the Protocol, you will have to supply digital assets of your own as collateral. If your collateral declines in value such that it is no longer sufficient to secure the amount that you borrowed, others may interact with the Protocol to seize your collateral in a liquidation event. You further acknowledge that we are not responsible for any of these variables or risks, do not own or control the Protocol, and cannot be held liable for any resulting losses that you experience while accessing or using the Interface. We make no warranties as to the markets on which digital assets are transferred, purchased, or traded. You are solely responsible for determining what, if any, taxes apply to your digital asset transactions. We are not responsible for determining the taxes that apply to your transactions. We do not store, send, or receive digital assets or funds. This is because digital assets exist only by virtue of the ownership record maintained on its supporting blockchain. Any transfer of digital assets occurs within the decentralized Protocol and Terra blockchain and not in the Interface. We cannot assist you to cancel or otherwise modify any transaction or transaction details. There are no warranties or guarantees that a transfer initiated via the Interface will successfully transfer title or right in any digital asset. Accordingly, you understand and agree to assume full responsibility for all of the risks of accessing and using the Interface and interacting with the Protocol.”
The Defiant: I believe that you may have misunderstood the rates that these insurance protocols are charging you. If I am wrong, please correct me. The interest value is calculated off of your insured amount, not in the interest that you earn. So it is not the case that they are charging you, say, 2.5 percent on your 20% earnings from Anchor Protocol, which would result in a 19.5 net interest rate. That would be amazingly cheap! Since they are charging you interest of the entire insured amount the net interest rate will be much lower: 12.5%. In other words, they are not skimming off a mere 2.5% of the interest that you are earning; they are taking 37.5% of your interest.
Can I ask how do you get the last few numbers? 20 - 2,5 = 17,5 is in my opinion the correct net interest rate the only way I managed to get to your numbers: 2,5 / 20 = 0,125 (12,5 %) ==> but this number means the insurance cost of the gross interest only (which is represented by the 20 % of the deposited emount = 12,5 % of 20 % = 2,5 % of the deposited amount) then 1 - (12,5 / 20) = 0,375 (37,5 %) ==> I assume this is how you got your number? I don't think you can perform this calculation since 12,5 corresponds to 100 being the whole unit of 1 (100%) and 20 corresponds to 20 being the whole unit of 1 (100%) ==> they have to be the same, for example 2,5/20 is possible because they both relate to 20 being 1 (100%). So, 17,5 % is the net interest rate and you lose 12,5 % of your earnings on insurance. Feel free to correct me as well :)
How did you get 37.5% of your interest? I calculate 2.5% of your deposit as 12.5% of your 20% interest. Which takes your interest rate down to 17.5% of your deposit. Which I think is the same as what The Defiant said - he said you should subtract the 2.5% fee from your 20% profit, giving you 17.5% profit overall. He didn’t say it was 2.5% OF 20%.
Hello there. I don´t understand one thing about these insurances.. actually, Let´s say i book an insurance on insurace to cover x x amount on Anchor on Terra network, for the payment (of insurace) and the contract iam using an eth adress. If something happens to anchor, an hack for eample, and i than claim my insurance, how can" insurace" know that my Walletadress on Luna is actually related to the eth adress I have used for the actual payment of my insurance? You know what i mean?
Defiant, have you guys talking about the diff of UST and other algo-usd, in term of safety / security, since most people said algo-usd is has more risk , yes? I hope you (or anyone reading) understand what I mean and could give me some insight,
I was watching this last week, and thinking "is it really worth taking out insurance in case UST loses its peg? Naaahhhh". That decision aged well. Lol - doh!
@@andanssas I joined the Discord and they are getting refunded. But they weren't allowed to sell there UST so far which can still mean a small loss for them. (That's what I understood )
Insurance is not a good idea for something like anchor. If something happens, it happens to all anchor community, just like war in real world, which normally every insurance company would exempt themselves. The liability involved could be too large to insure.
I love the idea of using anchor as my savings account, but I hate the transaction fees I have to pay to even get my money from fiat to there. I end up having to save for 3-4 months before I make back the initial loss from fiat-to-UST transaction fees (not to mention, getting it out). Does anyone know of a better way to get my fiat money to UST without high transaction fees
Binance smart chain bridge is cheap if you have funds on bsc. Or centralised exchanges you can send terra across and swap to ust. Kucoin has ust..from memory 3 or 4 dollars to send
You can buy UST directly at Coinbase and send it to your Terra wallet. From there it’s just 1 transaction away of being in Anchor! So just de fee for buying at Coinbase + 2 transactions
I don’t think They would make you whole in case of a hack. On their terms and conditions it states over and over how terra isn’t even the owner of the protocol and exclaims over and over again it does not have fiduciary responsibility. “14. Assumption of Risk By accessing and using the Interface, you represent that you understand the inherent risks associated with using cryptographic and blockchain-based systems, and that you have a working knowledge of the usage and intricacies of digital assets. You further understand that the markets for these digital assets are highly volatile due to factors including (but not limited to) adoption, speculation, technology, security, and regulation. You acknowledge that the cost and speed of transacting with cryptographic and blockchain-based systems are variable and may increase dramatically at any time. You further acknowledge the risk that your digital assets may lose some or all of their value while they are supplied to the Protocol. If you borrow digital assets from the Protocol, you will have to supply digital assets of your own as collateral. If your collateral declines in value such that it is no longer sufficient to secure the amount that you borrowed, others may interact with the Protocol to seize your collateral in a liquidation event. You further acknowledge that we are not responsible for any of these variables or risks, do not own or control the Protocol, and cannot be held liable for any resulting losses that you experience while accessing or using the Interface. We make no warranties as to the markets on which digital assets are transferred, purchased, or traded. You are solely responsible for determining what, if any, taxes apply to your digital asset transactions. We are not responsible for determining the taxes that apply to your transactions. We do not store, send, or receive digital assets or funds. This is because digital assets exist only by virtue of the ownership record maintained on its supporting blockchain. Any transfer of digital assets occurs within the decentralized Protocol and Terra blockchain and not in the Interface. We cannot assist you to cancel or otherwise modify any transaction or transaction details. There are no warranties or guarantees that a transfer initiated via the Interface will successfully transfer title or right in any digital asset. Accordingly, you understand and agree to assume full responsibility for all of the risks of accessing and using the Interface and interacting with the Protocol.”
Anchor Protocol is unbelievable. This is the future of DeFi.
Whats unbelievable about it?
@@r88a 20% yield anytime on a decentralised stablecoin
@@asapsyx1507 If it was sustainable it would be, unbelievable.
@@r88a it is
@@asapsyx1507 How? Yield is basically funded by printing new ANC tokens.
How can we be confident that these insurance companies will pay out if we need to make a claim? They've never been tested before.
Did they end up paying out?
@@mrbeefy971 following
Great video man, thanks
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I love the Luna ecosystem, it is so convenient!
If the market goes down, so will ETH. The idea that your payout would be in eth is insane
Great content! Thanks for sharing this information.
a overall look into various non-ETH bridges probably, cause people like me have assets in other chains like Terra, Polygon, BSC that I would love to transfer over to newer chains like Solana, Avalanche , 'and the bubble, stay safe out there'
hmmm... wondering about nexo/celcius/blockfi vs Anchor for stables... seems like the protocols give higher rates but at greater risk than the "centralized" defi sites, nexo/cel etc..
Is it though? With a ledger and Anchor, it’s questionable.
If you are a US citizen with no accredited investor status your options for yield in the centralized platforms is getting smaller and smaller thanks to the SEC. Defi protocols will be the only options left if you can handle the risks.
Thanks for doing this, very interesting topic, especially with all the hacks going on in the space.
Great video, I was interested in this insurance option for a while
Love Anchor, love Bridge Mutual
What makes you so sure that Terra will be able to make people whole in case of a hack? Great content by the way.
That was exactly my thought, on their terms and conditions it states over and over how terra isn’t even the owner of the protocol and exclaims over and over again it does not have fiduciary responsibility. “14. Assumption of Risk
By accessing and using the Interface, you represent that you understand the inherent risks associated with using cryptographic and blockchain-based systems, and that you have a working knowledge of the usage and intricacies of digital assets. You further understand that the markets for these digital assets are highly volatile due to factors including (but not limited to) adoption, speculation, technology, security, and regulation. You acknowledge that the cost and speed of transacting with cryptographic and blockchain-based systems are variable and may increase dramatically at any time. You further acknowledge the risk that your digital assets may lose some or all of their value while they are supplied to the Protocol. If you borrow digital assets from the Protocol, you will have to supply digital assets of your own as collateral. If your collateral declines in value such that it is no longer sufficient to secure the amount that you borrowed, others may interact with the Protocol to seize your collateral in a liquidation event. You further acknowledge that we are not responsible for any of these variables or risks, do not own or control the Protocol, and cannot be held liable for any resulting losses that you experience while accessing or using the Interface.
We make no warranties as to the markets on which digital assets are transferred, purchased, or traded. You are solely responsible for determining what, if any, taxes apply to your digital asset transactions. We are not responsible for determining the taxes that apply to your transactions.
We do not store, send, or receive digital assets or funds. This is because digital assets exist only by virtue of the ownership record maintained on its supporting blockchain. Any transfer of digital assets occurs within the decentralized Protocol and Terra blockchain and not in the Interface. We cannot assist you to cancel or otherwise modify any transaction or transaction details. There are no warranties or guarantees that a transfer initiated via the Interface will successfully transfer title or right in any digital asset.
Accordingly, you understand and agree to assume full responsibility for all of the risks of accessing and using the Interface and interacting with the Protocol.”
The Defiant: I believe that you may have misunderstood the rates that these insurance protocols are charging you. If I am wrong, please correct me. The interest value is calculated off of your insured amount, not in the interest that you earn. So it is not the case that they are charging you, say, 2.5 percent on your 20% earnings from Anchor Protocol, which would result in a 19.5 net interest rate. That would be amazingly cheap! Since they are charging you interest of the entire insured amount the net interest rate will be much lower: 12.5%. In other words, they are not skimming off a mere 2.5% of the interest that you are earning; they are taking 37.5% of your interest.
Ur right
How do you arrive at 12.5% ? It's not 20% - 2.5% = 17.5% ?
Can I ask how do you get the last few numbers?
20 - 2,5 = 17,5 is in my opinion the correct net interest rate
the only way I managed to get to your numbers:
2,5 / 20 = 0,125 (12,5 %) ==> but this number means the insurance cost of the gross interest only (which is represented by the 20 % of the deposited emount = 12,5 % of 20 % = 2,5 % of the deposited amount)
then 1 - (12,5 / 20) = 0,375 (37,5 %) ==> I assume this is how you got your number? I don't think you can perform this calculation since 12,5 corresponds to 100 being the whole unit of 1 (100%) and 20 corresponds to 20 being the whole unit of 1 (100%) ==> they have to be the same, for example 2,5/20 is possible because they both relate to 20 being 1 (100%).
So, 17,5 % is the net interest rate and you lose 12,5 % of your earnings on insurance.
Feel free to correct me as well :)
How did you get 37.5% of your interest? I calculate 2.5% of your deposit as 12.5% of your 20% interest. Which takes your interest rate down to 17.5% of your deposit. Which I think is the same as what The Defiant said - he said you should subtract the 2.5% fee from your 20% profit, giving you 17.5% profit overall. He didn’t say it was 2.5% OF 20%.
Always on the top! keep going , Thanks
Thanks I was just wondering about the insurance.
Hello there. I don´t understand one thing about these insurances.. actually, Let´s say i book an insurance on insurace to cover x x amount on Anchor on Terra network, for the payment (of insurace) and the contract iam using an eth adress. If something happens to anchor, an hack for eample, and i than claim my insurance, how can" insurace" know that my Walletadress on Luna is actually related to the eth adress I have used for the actual payment of my insurance? You know what i mean?
Defiant, have you guys talking about the diff of UST and other algo-usd, in term of safety / security, since most people said algo-usd is has more risk , yes?
I hope you (or anyone reading) understand what I mean and could give me some insight,
Still think of a reason why two of these insurances need us to connect wallet to get quote just to see how much we need to pay first.
brilliant video.
Thank you sir. Appreciate the info
Love your Luna content! Can't wait for Ozone😄
The insurance works only if we have a trust or metamask wallet ?
I was watching this last week, and thinking "is it really worth taking out insurance in case UST loses its peg? Naaahhhh". That decision aged well. Lol - doh!
Did the insurance end up paying out?
@@mrbeefy971 I didn’t take any insurance. That’s what I mean. I watched this video, thought about it, and then thought “naaaahhh”
4:33 "what it doesn't say is: it doesn't cover UST depegging" therefore likely no one got paid.
@@andanssas There were two different types of insurance. One for a hack, one for depegging. There was depegging insurance available.
@@willmosse3684 true, Erik went to their discord and it seems some people who had that insurance got paid.
EDIT: Erik commented in this video as well.
all these insurances has been sell off, at least smart contract insurance
What makes you think that the insurance provider will remain solvent. It's not even regulated.
4:33 "what it doesn't say is: it doesn't cover UST depegging"... The insurance providers probably knew this was likely to happen.
Suggestion for the ANC / ust lending pair. Thank you again
Until they make smart contracts binding legal digital documents then the insurance is useless
Has the unpeg insurance worked?
4:33 "what it doesn't say is: it doesn't cover UST depegging" therefore no insurance due to last week events.
@@andanssas At 09:00 there is the insurance for Anchor + UST peg, I mean this one.
@@Erik-ri1it haven't read the conditions, but if "depegging" is not stated, providers may sneak out through that...
@@andanssas I joined the Discord and they are getting refunded. But they weren't allowed to sell there UST so far which can still mean a small loss for them. (That's what I understood )
@@Erik-ri1it good news, thanks for sharing and smart move on their part, more will buy their insurances in the near future.
How do i connect my wallet the scan code wont work with my terra wallet? please help
Same here
Still waiting on that Karua update.
Insurance is not a good idea for something like anchor. If something happens, it happens to all anchor community, just like war in real world, which normally every insurance company would exempt themselves. The liability involved could be too large to insure.
Insur ace lest go 200$
What is Nexus Gets Hacked?
You gotta get insurance for your insurance.
you only lost the insurance cost.. but you steal have de anchor savings... but what if both get hacked
apart from buying Anc on Anchor Protocol is there any other exchange to do so
I know you can get it on KuCoin.
Kucoin.
I mean a Dex
on blue helix
shoulda woulda
I love the idea of using anchor as my savings account, but I hate the transaction fees I have to pay to even get my money from fiat to there. I end up having to save for 3-4 months before I make back the initial loss from fiat-to-UST transaction fees (not to mention, getting it out). Does anyone know of a better way to get my fiat money to UST without high transaction fees
Binance smart chain bridge is cheap if you have funds on bsc. Or centralised exchanges you can send terra across and swap to ust. Kucoin has ust..from memory 3 or 4 dollars to send
I also need to know. I wonder how good it is to send Luna from Binance to terrastation to convert to UST and deposit it onto Anchor that way
You can buy UST directly at Coinbase and send it to your Terra wallet. From there it’s just 1 transaction away of being in Anchor! So just de fee for buying at Coinbase + 2 transactions
@@hatewine2888 okay thats not too bad only a 1.5% transaction fee on Coinbase... didn't realize they offered directly on there
@@snazzy4854 you could buy UST from FTX and Kucoin and send it from there as well, but I think they both charge around 5$ for the terra transaction
Too much lip smacking
I don’t think They would make you whole in case of a hack. On their terms and conditions it states over and over how terra isn’t even the owner of the protocol and exclaims over and over again it does not have fiduciary responsibility. “14. Assumption of Risk
By accessing and using the Interface, you represent that you understand the inherent risks associated with using cryptographic and blockchain-based systems, and that you have a working knowledge of the usage and intricacies of digital assets. You further understand that the markets for these digital assets are highly volatile due to factors including (but not limited to) adoption, speculation, technology, security, and regulation. You acknowledge that the cost and speed of transacting with cryptographic and blockchain-based systems are variable and may increase dramatically at any time. You further acknowledge the risk that your digital assets may lose some or all of their value while they are supplied to the Protocol. If you borrow digital assets from the Protocol, you will have to supply digital assets of your own as collateral. If your collateral declines in value such that it is no longer sufficient to secure the amount that you borrowed, others may interact with the Protocol to seize your collateral in a liquidation event. You further acknowledge that we are not responsible for any of these variables or risks, do not own or control the Protocol, and cannot be held liable for any resulting losses that you experience while accessing or using the Interface.
We make no warranties as to the markets on which digital assets are transferred, purchased, or traded. You are solely responsible for determining what, if any, taxes apply to your digital asset transactions. We are not responsible for determining the taxes that apply to your transactions.
We do not store, send, or receive digital assets or funds. This is because digital assets exist only by virtue of the ownership record maintained on its supporting blockchain. Any transfer of digital assets occurs within the decentralized Protocol and Terra blockchain and not in the Interface. We cannot assist you to cancel or otherwise modify any transaction or transaction details. There are no warranties or guarantees that a transfer initiated via the Interface will successfully transfer title or right in any digital asset.
Accordingly, you understand and agree to assume full responsibility for all of the risks of accessing and using the Interface and interacting with the Protocol.”
I love the Luna ecosystem, it is so convenient!