In almost mid of May, Anchor Protocol was on short supply of deposited bAsset staking derivatives value and happened to rely on the reserve fund to prop up the target 20% yield target on UST Earn.

APR is calculated using below formula:

APR = Periodic Rate x Number of Periods in a Year

APR stands for Annual Percentage Rate, which is a strategy to calculate interest for investment and credit products. APR represents the annual rate charged for earning or borrowing money.

APR does not take into account the compounding of interest within a specific year. It is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied. It does not indicate how many times the rate is applied to the balance.

Thats the situation where Neptune Finance was launched, which was the first dApp built on Anchors backend to support the Anchor Protocol.

Anchor protocol has suffered a drop from the Earn target as the reserve fund was bled dry and even with the ANC token distribution APR for taking out a loan on bAssets being temptingly high, users are hesitant to proceed due to fear of liquidation losses.