>To be able to pay out 20% interest rate on deposits you need to issue loans at higher rate.
No, as I mentioned part of that 20% comes from staking rewards. I also missed that there is also a small liquidation fee that contributes to what gets paid out.
>But who would take such a loan when they can go to a traditional bank?
Because you can instantly get the loan. Because you get paid in ANC for borrowing. This ANC can be sold to help offset the interest. 10% Anchor's protocol fees are used to buy ANC which is distributed to people staking ANC which incentivizes a demand for ANC. At times you would make more in the ANC rewards than what you had to pay in interest.
A scheme is a plan. Saying just that trivializes the massive amount of work creating a community, creating websites, working on the distributed system itself, doing the marketing, creating smart contracts, getting the smart contracts auditted, setting up bug bounties, writing documentation, moderating the community, creating tools for visualizing the blockchain or other stats, creating various other dapps, etc. Pretty much everything worked on is open source too. You can find it on github.
I don't go around calling Linux a scheme, or emacs a scheme, or blender a scheme.
Madoff also did all those things. Every time I look into one of those “projects” it either depends on money coming in or other parts of the crypto system growing. Stop fucking lying to people, and especially don’t compare it to something like Linux. So much wasted effort for nothing
>Every time I look into one of those “projects” it either depends on money coming in or other parts of the crypto system growing
Can you please explain what you are talking about. There are a lot of different projects that are related to cryptocurrency. I think we are talking past each other.
>Stop fucking lying to people
What lie did I tell? I have been trying my best to explain how things work because I have been looking into how it functions over the past fwe days.
>and especially don’t compare it to something like Linux
I was just picking open source projects which have a community built around them.
No, as I mentioned part of that 20% comes from staking rewards. I also missed that there is also a small liquidation fee that contributes to what gets paid out.
>But who would take such a loan when they can go to a traditional bank?
Because you can instantly get the loan. Because you get paid in ANC for borrowing. This ANC can be sold to help offset the interest. 10% Anchor's protocol fees are used to buy ANC which is distributed to people staking ANC which incentivizes a demand for ANC. At times you would make more in the ANC rewards than what you had to pay in interest.