INTL/CRBTF – 20% reward/interest - CEO response: Question to John Eagleton, CEO:
How can a percentage of 20 be achieved if, say, customers just leave their money in the savings account?
Response from John Eagleton, CEO:
Regarding the 20% savings, you may be familiar with Bitcoin hardware mining (Proof of Work).
Here hardware is used to mine the bitcoin blockchain and miners are rewarded with bitcoins for proof of work.
With other blockchains such as Ethereum (with old proof of work and new proof of work) and Terra (proof of work), the users who use their tokens (Ethereum or Luna) are rewarded.
Rewards also come from transactions on the blockchain. So, with respect to the anchor protocol and 20% interest, there are borrowers and lenders on the protocol.
Borrowers must provide 200% collateral from Luna. The Luna rewards for demonstrating commitment are around 10%. So if the lender lends out $ 100, that $ 100 is backed by $ 200 worth of Luna who earns 10% = $ 20.
That $ 20 goes to the lender so the lender makes $ 20 with $ 100 that was borrowed = 20%.
This is a basic explanation that is more complex and nuanced but hopefully gives you the basic idea.
Till2382 wrote on 05/04/21 21:51:44 Post No. 1.403 (68.055.029)
(copied back and forth and therefore a bit bumpy) Discussion under:
https://www.wallstreet-online.de/diskussion/1286572-1401-1410/cryptanite-blockchain-technologie-chance#neuster_beitrag