This is a nice recap of the potential improvements.
As for whitelisting ANC as collateral, I think a better option would be to whitelist Bonded ANC, or bANC. Since now there’s somewhat of a better framework for creating bAssets, creating bANC shouldn’t be too difficult.
Also adding in what has been in discussed within the Anchor team to address ANC’s value (arranged from easiest to implement to the hardest).
Short-term
- Whitelist bETH as collateral → in final steps, increases cashflow via more borrowing demand.
- Whitelist bANC as collateral → recaptures borrower ANC incentives back to the protocol, decreasing selling pressure.
- Increase buyback ratio from 10% to 30% → doable if bETH allows for a net-positive cashflow
Mid/long-term
- A flat fee of e.g. 0.5% when repaying borrowed UST → capture additional cashflow from active use of the protocol.
- Instead of having gated yield for ANC stakers, offer lower yield to smart contract-based depositors (perhaps whitelist a few contracts to give them the full Anchor yield) and use the yield difference to buyback ANC & distribute as ANC staking rewards. → applies a protocol fee to third-party DeFi applications building on top of Anchor without hurting the yield for savings applications
- Require ANC stake to efficiently participate in liquidations (the more ANC you stake, the more bids you can submit to the liquidations queue) → increase utility for ANC
Would love to hear how the awesome community thinks about the ideas above