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

Do Kwon

@stablekwon

Apr 18, 2021

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

Gaston Devrient

@polodevrient

Apr 18, 2021

Thank you! And as for the risks?

Do Kwon

@stablekwon

Apr 18, 2021

Smart contracts could fail due to unforeseen bug

RektLunatic

@rekt_lunatic

Apr 18, 2021

If there was some form of insurance for the UST, I assume adoption of this would be even faster. Isn’t there actually some more than 20% possible that could be used to fuel some insurance fund? Love all the stuff so far and can’t wait to see the next steps.

Do Kwon

@stablekwon

Apr 18, 2021

Give me ... 1 week

135

Cent

@CentQI

Apr 18, 2021

Hopefully will be implemented before the next dip. Liquidations can cause some FUD, especially from greenhorns who are often not aware of the risk factors coming with loans.

Replying to

To be clear, this wont insure against liquidations, just technical failure on deposits

11:24 PM · Apr 18, 2021Twitter for iPhone

Replying to

Protecting deposits is exactly what I hoped Ozone would do 🙂

Replying to

Curious and trying to understand... what happens in 5-10 years when there’s a ton more deposits than loans... 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.