6 Months Old — a health check on Anchor Protocol

Snapshot of Anchor’s Dashboard as at 19 Sep 2021

Recap

Deposits

How can this be used to check against historical growth rates?

Data from Anchor’s dashboard and Coingecko
Sensitivity table of Deposits’ weekly growth rate based on the two variables

Collateral

Anchor’s reliance on different collateral types

But are users really providing more bAssets as collateral?

  • Lower borrowing incentives due to the introduction of bETH (dilution of distribution APRs)
  • Imminent launch of new protocols (Prism, Levana, etc.) which would give new use cases for LUNA (incentivising users to unbond their bLUNA prior to launch)
  • Anticipation of higher staking rewards for LUNA once Columbus-5 goes live (causing users to withdraw and stake on Terra Station instead of providing to Anchor as collateral)

Attempting to validate point 3

Data courtesy of Smart Stake

The organic growth of bETH

Conclusion

  • Finding a way to uncorrelate deposit yields from collateral staking rewards — hinted here by Matt Cantieri, GM of Anchor
  • Implementing a dynamic yield mechanism that adjusts according to the value of provided collateral, their associated staking yields and borrowings

Thank You

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cpt n3mo

VC | Investment | Research @ Hashed; Articles are my personal views and not financial advice. @cptn3mox on Twitter