I'M currently trying to learn more about anchor I know aave

Question

I'M currently trying to learn more about anchor I know aave

very well but I have a little trouble understanding how Anchor works

from what I understand, borrowers pay huge rates (rates compensated by inflation / the distribution of ANC tokens) and stakers keep their staking rewards, which allows a 20% yearly rate

apart from that, what are the differences between the two protocols? what makes AAVE better? (apart from the advanced features, reputation and all that is purely fundamental)

I'm trying to understand the advantages of the approach AAVE adopted to generate yield

#aave #blockchain #cryptocurrency #english

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03.03.2022

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Zack | DeFi is on 🔥 Crypto Автор вопроса

h3lpfulBrother
At it's core UST is an algo stable, collateralized...

Thanks for the response

0

03.03.2022

h3lpfulBrother · Accepted Answer

At it's core UST is an algo stable, collateralized by LUNA, similar mechanics to DAI v1. The deposit rate is supposed to be funded by borrowers, but the reality is there is not enough borrow demand so there is a (limited) reserve of LUNA being burnt and swapped to UST to support the current deposit rate. Aave is a multi asset (and soon multichain) money market that is more general purpose, and IMO more sustainable as the deposit rates will always be covered by the borrowers without the need for token burns.

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I'M currently trying to learn more about anchor I know aave

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