Anchor is an onchain borrowing protocol built on Solana.
Deposit supported crypto assets as collateral, borrow against them within defined limits, repay your debt, and withdraw your collateral when your position allows it.
Simple mechanics. Clear risk. Onchain execution.
Choose a supported asset and deposit it into Anchor. Your collateral determines how much you can borrow. Its value can change with the market, so your borrowing capacity can change too.
Once collateral is deposited, Anchor calculates how much you can borrow. Choose a supported loan asset and enter an amount within your available limit. Before confirming, Anchor shows how the borrow affects your position.
Your position stays open while you have outstanding debt. Anchor shows collateral value, outstanding debt, loan to value, borrowing capacity, liquidation threshold, and position health. These values can change as prices move.
Repay some or all of your debt through Anchor. Repaying debt lowers your outstanding balance and improves your position health.
Once your position allows it, you can withdraw your collateral. If a withdrawal would make the position too risky, Anchor will prevent it.
You deposit SOL. Anchor calculates the value of your SOL collateral. You borrow USDC within your available collateral limit. Your SOL remains in the position while your debt is open.
If SOL rises in value, your position may gain additional borrowing capacity. If SOL falls in value, your loan to value increases and your position moves closer to liquidation.
You repay your USDC debt. Once the position is healthy enough, you withdraw your SOL.
Collateral is the asset you deposit to support your loan.
Each supported asset can have different risk parameters. More volatile assets generally require more conservative borrowing limits.
- Maximum loan to value
- Liquidation threshold
- Supply limits
- Borrow limits
- Oracle configuration
Anchor lets you access liquidity without immediately selling your collateral.
Your borrowing capacity is based on the value of your collateral, the asset's collateral parameters, your existing debt, and current protocol limits.
Borrowing close to the maximum available amount gives your position less room to absorb market movement. A larger collateral buffer gives you more distance from liquidation.
Loan to value, or LTV, compares your debt with the value of your collateral.
If your collateral falls to $8,000 while your debt remains $5,000, your LTV becomes 62.5%.
Higher LTV means more risk. Lower LTV means more room before liquidation.
Position health gives you a simple view of how safe or risky your position currently is.
It can change when collateral prices move, you borrow more, repay debt, add collateral, or withdraw collateral.
A healthy position has more distance from its liquidation threshold.
If a position becomes too risky, it may become eligible for liquidation.
During liquidation, part or all of your collateral may be used to repay outstanding debt.
- Your collateral loses value
- You borrow more
- You withdraw collateral
- Your debt becomes too large relative to your collateral
You can repay your debt through Anchor.
Once your debt is fully repaid, your collateral can be withdrawn.
- Reduce your LTV
- Improve position health
- Increase withdrawal capacity
- Reduce future borrowing costs
Anchor shows borrowing rates per DAY, not as annual APR. Your daily rate = the collateral's base daily rate + a pool utilization premium.
Base daily rates by risk tier: Lower 0.30%, Medium 0.50%, Medium High 0.75%, High 1.25%, Very High 2.00%.
Pool utilization premium: 0-50% +0.00%/day, 50-75% +0.10%/day, 75-90% +0.25%/day, 90%+ +0.50%/day.
Estimated interest = SOL borrowed × daily rate × number of days.
Anchor begins with five collateral markets: PUMP, PAID, CATE, BONK and ANSEM. Each market's risk tier comes from its market cap:
- $1B+ — Lower risk · max LTV 30% · liquidation 40%
- $250M to $1B — Medium · max LTV 25% · liquidation 35%
- $75M to $250M — Medium High · max LTV 20% · liquidation 30%
- $25M to $75M — High · max LTV 15% · liquidation 25%
- Under $25M — Very High · max LTV 10% · liquidation 20%
- Creator fees from supported tokens can add SOL to the Anchor liquidity pool.
Assets on Anchor may use the SPL token standard. Token symbols can be copied, so the name of a token alone should never be treated as proof that it is genuine.
Anchor uses external price data to calculate:
Oracle systems can fail or behave unexpectedly. Possible risks include delayed or incorrect prices, temporary outages, market dislocations, and rapid price movement.
- Collateral value
- Borrowing capacity
- Loan to value
- Liquidation conditions
Anchor is built on Solana. Transactions are executed onchain and approved through your Solana wallet.
You will need a small amount of SOL to pay network fees. Some actions may require multiple Solana transactions depending on the state of your position.
Your wallet controls your assets.
Before signing a transaction, check the asset, amount, action, and expected result. If a transaction does not match what you intended to do, reject it.
A typical Anchor transaction looks like this:
- Connect wallet
- Choose collateral
- Deposit collateral
- Choose loan asset
- Select borrow amount
- Review position health
- Confirm transaction
- Monitor your position
- Repay
- Withdraw collateral
Using the protocol involves financial and technical risk.
- Collateral price risk
- Liquidation risk
- Smart program risk
- Oracle risk
- Token risk
- Stablecoin risk
- Liquidity risk
- Solana network risk
- Wallet risk
- Third party infrastructure risk
Anchor runs through programs deployed on Solana. Programs can contain bugs, vulnerabilities, incorrect validation, unexpected behavior, and economic design flaws.
Anchor depends on Solana. Network congestion, outages, validator issues, software bugs, or other network events may temporarily affect your ability to interact with the protocol.
This can matter during fast moving markets.
Borrowed assets such as stablecoins may not always maintain their intended value.
- Depegging
- Liquidity problems
- Issuer risk
- Market stress
- Technical failures
- Understand your liquidation threshold
- Check your current LTV
- Leave room for price movement
- Keep SOL available for network fees
- Review borrowing costs
- Double check every transaction
- Understand the collateral you are depositing
What is Anchor?
Anchor is a borrowing protocol built on Solana. Users deposit crypto as collateral and borrow supported assets against it.
Why borrow instead of selling?
Borrowing can give you access to liquidity while keeping exposure to your collateral. It also introduces debt and liquidation risk.
Do I need collateral?
Yes. Anchor uses overcollateralized borrowing. You deposit collateral before borrowing.
Can my collateral be liquidated?
Yes. If your position becomes too risky, it may become eligible for liquidation.
Can I repay early?
Yes. You can repay debt and improve the health of your position.
Can I withdraw collateral while borrowing?
Yes, as long as the remaining position stays within the protocol's collateral requirements.
Does Anchor control my wallet?
No. You approve transactions directly through your Solana wallet.
Is Anchor risk free?
No. Anchor involves volatile assets, leverage, smart programs, and external infrastructure.
Crypto collateral should be able to do more than sit idle.
Anchor is exploring a simple idea: use the assets you already hold as collateral. Access liquidity without immediately selling them.
Keep the mechanics transparent. Keep the important risks visible. Keep execution onchain.
Put collateral to work.
Built on Solana. Onchain borrowing with clear mechanics and visible risk.
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