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Anchor is a savings protocol offering low-volatile yields on Terra stablecoin deposits (UST). The Anchor Token (ANC) is Anchor Protocol’s governance token. Users can deposit ANC tokens to create new governance polls, which can be voted on by users that have staked ANC. ANC is designed to capture a portion of Anchor’s yield relative to Anchor’s assets under management (AUM).

Anchor distributes protocol fees to ANC stakers pro-rata to their stake. Stakers of ANC are further incentivized to propose, discuss, and vote on governance proposals. ANC is also used as an incentive to bootstrap borrow demand and initial deposit rate stability. The protocol distributes ANC tokens every block to stablecoin borrowers, proportional to the amount borrowed.