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I'm new to Stellar technology and I have some doubts about the Anchors.

As I understand it, the "key point" in transfer real fiat money on the network is the Anchor. An Anchor is a trusted entity that can take fiat money and issue credits on the network, credits that can be transferred from an account to another and then exchanged back to fiat money from the Anchor.

So far so good, but I read that you can also exchange your credits for another currency, different from the one that you deposited in exchange for your initial credits, from a different Anchor on the network.

Let's say I deposited 100 USD in Anchor1 and it issues credits for that amount in my account. Now I want to exchange those credits with Anchor2 for the equivalent amount in EUR.

If what i've written is right, how much does this operation cost to me?

I know about the transaction fee which is "a fraction of a fraction of a penny" but beside this, does the Anchor apply a fee as well?

What I'm really trying to understand is the point of view of the anchors, why should they integrate with the system?

What are the advantages of being part of the network?

And eventually, should I have a "partnership" with the Anchor2 (like being its customer) to withdraw the EURs?

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Using your example, in order to withdraw EUR from Anchor2, you will need to trade your Anchor1:USD for Anchor2:EUR on the distributed exchange (SDEX).

The cost will be the exchange rate of that trade, less the minuscule fee for issuing transactions (paid in XLM).

Additionally, an anchor may apply a fee when you deposit or withdraw fiat. I am not familiar with the business model of actual, real world anchors, but I assume this is their primary revenue channel.

You will need to have a relationship with both Anchor1 and Anchor2. Specifically, your account will need to have a trustline to both Anchor1:USD and Anchor2:EUR before you can issue offers on the DEX to exchange them.

  • "an anchor may apply a fee..." exactly, that was my doubt. Thanks for your help – Ve9 Nov 2 '18 at 8:58
  • To be fair, it's only my guess. A few anchor operators frequent the community, so let's wait to see if they have anything to say about it. – Synesso Nov 2 '18 at 9:15
  • AFAIK all fiat anchors charge fee for fiat conversion. Even btc, ethereum anchors charge fee. – jagstock Dec 2 '18 at 12:34

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