Lending protocols like Anchor are money markets that in essence work similarly to banks: lenders deposit funds, borrowers borrow them by putting down collateral and paying interest.
All borrowing in lending protocols is managed automatically. This means that we're not paying substantial bank fees.
In addition to borrower interest, Anchor captures staking rewards from loan collateral and sells them to further subsidize your interest rate.
All loans are overcollateralized, so you are not at risk of losing your deposit. More here.
Read our blog post with a deeper dive into Anchor here.