Cryptocurrency lending service Celsius withdrew $500 million from Anchor Protocol due to UST instability.
At least 261000 ETH ($535 million) was sent from Celsius wallets to Anchor Protocol within five months.
Celsius allows retail investors to earn up to 17% APR on cryptocurrency deposits.
Anchor, on the other hand, offers yields of up to 20% on UST deposits.
According to The Block, Celsius withdrew about 225,000 ETH on May 11, and later managed to withdraw the remaining 36,000 ETH.
“Celsius was doing relatively well because they were using Bonded ETH (bETH) as collateral to borrow USTs, which they then transferred to Anchor for income. In the current situation, it turned out to be safer than buying USTs from the market,” said The Block analyst Igor Igamberdiev.
The analyst also said that the withdrawn ETH were subsequently sent to Aave v2 lending protocol.