Anchor Protocol and the Curious Case of Staking Fees as “Stable” Interest

Staking fees in Proof-of-Stake networks provide a relatively stable yield that can be redirected into lending protocols like Anchor. By using staking derivatives as collateral, borrowers trade part of their staking rewards for instant liquidity, while the protocol redirects most of those fees to pay savers competitive interest—often higher than direct staking would allow. This structure distributes risk across many borrowers, protects the network’s decentralization, and creates sustainable savings rates unique to DeFi.