> Anchor is a DeFi protocol operated by Terraform Labs, the creators of UST. For most of its existence it has paid 19.5% APY on any quantity of deposited UST. It has then lended these deposits at APRs that typically vary from 2% to 15%. Only about one half to one sixth of the deposited UST has been lent out to borrowers at any given time.

I had a friend I was trying to explain this math to, when he said he was getting I believe 12% APY earlier this year. I was of course concerned how anyone can offer 12% with any reasonable guarantee, but he was getting "paid"... I remember going to their website where you could see the interest rates on deposits, and interest rates on "loans" and it was clear as day those two ranges we're clearly in conflict with actually making money.

Anyway he HODL'd and lost a good chunk of money.