Anchor-Protocol / governance

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This repository contains Anchor governance related contents.


Anchor is an open financial protocol built on the Terra network that leverages liquid staking derivatives to enable a stable interest rate. In this document, we will describe the phases of governance for Anchor protocol. Phase A will be primarily led by the Interchain Asset Association (IAA). Phase B, on the other hand, will be completely community-driven without a leading central party.

Phase “A” - Governance led by IAA(Interchain Asset Association)

IAA (Interchain Asset Association)

The Interchain Asset Association (IAA) is a non-profit organization in charge of creating, governing, and reducing operation risks during the early stages of Anchor protocol. IAA will take a major role in designing, developing, and supporting Anchor protocol, as there are no solid community formed around Anchor.

The IAA is governed by a steering committee, made up of three representatives chosen from association members. The steering committee is charged with carrying out day-to-day management and representation of the Association. Initial steering committee members are:

  • Jack Platts (Polkadot)
  • Zaki Manian (Iqlusion/Cosmos)
  • Do Kwon (Terraform labs)

The mission of the IAA is to research, develop and educate interchain-based decentralized financial products to drive mass adoption. Anchor protocol will be the first interchain-based open financial product that IAA is taking initial responsibility.

The IAA will provide initial governance responsibility around:

  • Designing mechanisms : The IAA will initially take responsibility on designing core mechanisms of Anchor protocol. This includes interest stability mechanisms and liquidation algorithms.
  • Setting key parameters of the protocol : The IAA sets key economic parameters through economic analysis and transparent data-driven argumentation. This includes adjusting borrowing multipliers, and setting the minimum LTV (loan to value) ratio of each asset.
  • Ecosystem Support & education : To drive early adoption and growth, the IAA will support early ecosystem support & education regarding Anchor protocol.This includes supporting integration with wallets, and offering educational documentation.

Phase “B” - Hand over governance to community

We believe that the key for the success of and open finance protocol is to have solid decentralized governance. By having a solid, decentralized governance process, we can reduce the risk of having a single point of failure, and will be able to create an open finance protocol that evolves with community participation.

Phase “B” will be on or after the point Anchor gets mature enough to become a fully decentralized protocol. During phase “B”, the IAA will completely hand over the protocol’s governance to the Anchor community to create a fully decentralized, open financial product.

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