{"id":459896,"date":"2022-06-09T08:39:22","date_gmt":"2022-06-09T05:39:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/anchor-dev-claims-he-warned-do-kwon-over-unsustainable-20-interest-rate\/"},"modified":"2022-06-09T08:39:22","modified_gmt":"2022-06-09T05:39:22","slug":"anchor-dev-claims-he-warned-do-kwon-over-unsustainable-20-interest-rate","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/anchor-dev-claims-he-warned-do-kwon-over-unsustainable-20-interest-rate\/","title":{"rendered":"# Anchor dev claims he warned Do Kwon over unsustainable 20% interest rate"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a29021458529\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a29021458529\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/anchor-dev-claims-he-warned-do-kwon-over-unsustainable-20-interest-rate\/#%E2%80%9D_Anchor_dev_claims_he_warned_Do_Kwon_over_unsustainable_20_interest_rate_%E2%80%9C\" >&#8221; Anchor dev claims he warned Do Kwon over unsustainable 20% interest rate &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Anchor_dev_claims_he_warned_Do_Kwon_over_unsustainable_20_interest_rate_%E2%80%9C\"><\/span>&#8221; Anchor dev claims he warned Do Kwon over unsustainable 20% interest rate &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvYjFiMjBjZGUtZWZmOS00MTFkLWJjN2QtZGNmOWM4YmQ2YTk4LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Anchor protocol was originally designed to offer an interest rate of 3.6% but this was dialed up to 20% just a week before release to attract more investors, a core developer alleged in an interview with Korean <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/news.jtbc.joins.com\/html\/673\/NB12061673.html\">outlet<\/a> JTBC.\u00a0<\/p>\n<p>\u201cI did not know that this would go out with such a high-interest rate. Set to 20% just a week before the release,\u201d said the employee, referred to only as Mr. B in the Korean-language report. \u00a0 <\/p>\n<blockquote><p>\u201cI thought I was going to collapse from the beginning. (I designed it), but it collapsed 100%\u201d<\/p><\/blockquote>\n<p>Mr. B said the platform was designed to only offer an interest rate of 3.6% and this was a key component of keeping the Terra ecosystem stable as it took into account the available funds in Anchor\u2019s war chest. <\/p>\n<p>Mr. B revealed however that a week before launch, the developers found out that the plans had been changed, giving investors access to a very high 20% interest for locking up their UST stablecoins in the Anchor Protocol instead. <\/p>\n<p>The JTBC also claims it had obtained internal design documents made by Terraform Labs, which wrote about attracting investors with high-interest rates. <\/p>\n<p>The developer said he attempted to take this issue up with Terra Luna founder Kwon Do-Hyung (Do Kwon) just ahead of the launch in April 2019. <\/p>\n<blockquote><p>\u201cJust before the release, I suggested to CEO Kwon Do-Hyung that the interest rate should be lowered, but it was not accepted.&#8221;<\/p><\/blockquote>\n<p><strong><em>Related: Law Decoded, May 30\u2013June 6: Terra\u2019s aftermath in China, Japan and South Korea<\/em><\/strong><\/p>\n<p>The dramatic fall of Terra (LUNA) and the algorithmic stablecoin UST has led to plans by the South Korean government to launch a new Digital Asset Committee in June, to serve as a watchdog over the country\u2019s crypto industry responsible for policy preparation and supervision.<\/p>\n<p>Do Kwon has been summoned to attend a parliamentary hearing on the matter in South Korea in mid-May.<\/p>\n<p>He has also found himself in hot water after court documents revealed he dissolved Terraform Labs Korea just days before the LUNA crash.<\/p>\n<p>In May, South Korean authorities also reportedly issuing subpoenas to employees of Terraform Labs, looking into whether there was intentional price manipulation and whether the tokens went through proper listing procedures. <\/p>\n<p>Despite this, the Terra co-founder has managed to relaunch the collapsed network on May 28 with a new chain called Terra 2.0 (Pheonix-1), aimed at reviving the fallen Terra (LUNA) and TerraUSD (UST).<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/anchor-dev-claims-he-warned-do-kwon-over-unsustainable-20-interest-rate\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Anchor dev claims he warned Do Kwon over unsustainable 20% interest rate &#8220; Anchor protocol was originally designed to offer an interest rate of 3.6% but this was dialed up to 20% just a week before release to attract more investors, a core developer alleged in an interview with Korean media outlet JTBC.\u00a0 \u201cI&#8230;<\/p>\n","protected":false},"author":1,"featured_media":459897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvYjFiMjBjZGUtZWZmOS00MTFkLWJjN2QtZGNmOWM4YmQ2YTk4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74863,122378,117,72420],"class_list":["post-459896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cryptocurrencies","tag-terra","tag-business","tag-south-korea"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=459896"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/459896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/459897"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=459896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=459896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=459896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}