Conversation

Do Kwon

@stablekwon

Apr 18, 2021

20% savings on

@anchor_protocol

lookin pretty good huh CT app.anchorprotocol.com - this is ze way

546

hi! Is it inevitable that the 20% will go down over time once you get flooded with deposits?? How do I explain a vanilla saver the safety and risks of earning on the anchor protocol

Replying to

and

It will go down as PoS chains start to bring down staking yields & LTV ratios on anchor become more competitive as pos coins exhibit less price volatility- but i expect this evolution to be over several years

9:36 AM · Apr 18, 2021Twitter for iPhone

Replying to

and

Thank you! And as for the risks?

Do Kwon

@stablekwon

Apr 18, 2021

Smart contracts could fail due to unforeseen bug

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Curious why you think borrowers will share staking yields with lenders in the long run. If i fork Anchor and offer borrowers all the staking yield, it would make AnchorClassic less competitive. 20% savings rate could still be maintained by partially sourcing yields from LP mining

TLE

@TLE42069

Apr 18, 2021

that would make the rate more volatile no? the main purpose of Anchor is to appeal to normal savers who want a stable return on a stablecoin - they might not even be aware they are interacting with crypto.

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How would anchor work in a bear market when the value of the pos coins to usd is going down?

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Curious and trying to understand... what happens in 5-10 years when there’s a ton more deposits than loans on ANC... will the 20% still be there or lower? Wanting to build on top of ANC and Terra but will need to figure out this question first. Awesome work!!!