Conversation

Mar 17, 2021

1/ Anchor public announcement #4: Hello, $ANC. 1 hour away from the token generation event, this thread is all about why $ANC is valuable.

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Do Kwon

@stablekwon

Mar 17, 2021

2/ Not investment advice. But if you'd like to be informed, have a read through these two great reports by

@arringtonXRPcap

and

@Delphi_Digital

explaining $ANC's role in

@anchor_protocol

: arringtonxrpcapital.com/wp-content/upl delphidigital.io/reports/anchor

Do Kwon

@stablekwon

Mar 17, 2021

3/ While there are many phenomenal DeFi protocols, there are not many valuable DeFi assets. That is, the protocol would work just fine without the asset, and the asset does not capture value in the protocol.

Do Kwon

@stablekwon

Mar 17, 2021

4/ Capturing value is important - and this is because it helps to build a strong community around the network. Nation states, after all, are just strong communities united by common values and interests. Protocols that fail to capture value will fail to form communities.

Do Kwon

@stablekwon

Mar 17, 2021

5/ Earlier, I claimed that $ANC's value capture mechanism would be superlinear to the growth of AUM. $ANC captures a part of the staking rewards accruing to the staking assets the protocol holds (10-20%), and uses said rewards to purchase $ANC assets on Terraswap.

Do Kwon

@stablekwon

6/ ... The purchased $ANC is then distributed to users that stake and participate in the protocol's governance.

7:17 AM · Mar 17, 2021Twitter Web App

Replying to

7/ From a cashflow perspective, $ANC captures rewards linear to the growth of the protocol's AUM. $ANC effectively has turned decentralized banking into a user ownership economy, with a 100% propensity to dividend.

Do Kwon

@stablekwon

Mar 17, 2021

8/ The reason why I suspect $ANC will capture superlinear value is because its reward mechanism transfers value to the strongest believers in the network. In this grand experiment to create an unmanipulated source of savings yield, you, the user, is going to be in control.

Do Kwon

@stablekwon

Mar 17, 2021

9/ Happy birthday, $ANC, and I can't wait to meet you in 45 minutes 🚀

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Replying to

and

Hello ANC, at day 1 I have joined the LP pool with a rewards percentage up to 2500% which was generous ! Meanwhile percentage has drop to 500% which is still generous. What’s the calculation mechanism behind ?