LFG plans to inject $450 million into Anchor Protocol to help boost its earnings reserves to maintain a 20% interest rate

On February 10, Terra eco-non-profit Luna Foundation Guard plans to invest $450 million in Anchor Protocol, a fixed-rate agreement, to help boost its earnings reserves to sustain 20% interest rates. An LFG spokesman said the proposed cash injection was a temporary solution to allow Anchor Protocol time to develop a more sustainable economic model. Currently, Anchor Protocol plans to introduce a new lending incentive model and diversify collateral. Anchor Protocol's earnings reserves are understood to have fallen more than 80 per cent since December due to a lack of willingness to lend. Earnings reserves have fallen by an average of about $1.6m a day over the past four weeks, leaving them with just eight days of earnings to cover.