Introduction to Anchor Integration Protocol - Advias

General
1

Hey guys,

I’m Jordan, head dev at Advias. We’re building a protocol that integrates into Anchor Protocol on blockchains outside of Terra. Thanks to the Anchor team for making this possible along with the team at Wormhole.

I want to introduce what we’re doing and quickly go over some of the key points I think are important. Stick to the end because some of this may sound ridiculous.

Advias allows anyone to take out a debt position with an ultimate APY of -10%, yes a net-negative APY. Stick with me here…

Rate this 1-10 on how believable this is.

If you took out a 6% APY loan on 100,000 worth of AAPL stock and by year-end, AAPL was worth 15% more, that’s a -9% APY.

Except, ours is powered by Anchor Protocol.

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This may seem too good to be true and if you think that, prepare to be flabbergasted.

What if I said that was the bare minimum?

Has the rating increased?

That was the original concept but quickly my mind started weaving and bobbing and connecting blockchains to blockchains in my own mind’s metaverse and I realize… I could help borrowers on Anchor remove nearly 100% of their debt risk.

You’re at a 0 rating probably?

:man_judge:

THAT’S IT, you’ve gone too far!

But here’s how…

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Without Advias:

  • Starting : 100,000 UST

  • Debt Responsibility : 20,000 UST

  • Ultimate Debt APR : 20%

With Advias:

  • Starting : 90,000 DAI

  • Debt Responsibility : 9,000 DAI

  • Ultimate Debt APY : 10%

How does this remove nearly 100% of debt risk?

Now, removing 100% of the risk is impossible but assuming UST debt and the Advias collateral rate is 20%, we can take a lot off.

By depositing the debt from Anchor as collateral, you are now paying the debt off. You also now have 90,000 DAI (responsible for 9,000 DAI) (or another stable asset) to work with.

Math: https://advias.gitbook.io/conceptual-design#interoperable-luna-growth-strategy

Now?

I’m going to have to do it one more time but instead this time, head over to our gitbook so you can look further into it.

The strategies are endless alongside Anchor, lending pools, and bridging.

Again, a huge thanks to Anchor and Wormhole for making this possible. Along with all the other parties involved.

Aside from the strategic focus of borrowing, Advias also allows standard lending and borrowing.

Lending will work like this:

Lenders will deposit an asset like USDC and we will balance it between bridging to Anchor in return for aUST and our lending pool, the user is minted an avasToken similar to aUST or AAVE’s aToken or Compounds cToken. Our rebalancing algorithm does all of the work in order to ensure the interest rate lenders receive is stabilized, let’s say around 10% APY.

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Borrowing will work like this:

Borrower deposits UST into the UST lending pool, although, UST is not a borrowable asset and the lending pool for UST is discounted below other stable assets by design. This is a borrow-to-deposit abuse preventative, and incentive for other assets.

They can then borrow other stable assets at a 90% LTV at an interest rate about equal to the lending rate, say about 10%.

When the borrow is initiated, the avasToken is burned and an avasCollateralToken is minted. the avasCollateralToken receives the full 20% APY the AUST will generate.

A quick note, UST deposit rate will not be 20%. The excess interest rate appreciation on UST deposits to the lending pool is sent to our Liquidity Vault to be used for liquidity to lenders.

At this point a borrower that deposited 100,000 UST would currently have:

  • 100,000 UST in collateral at 20% APY (appreciation)
  • 90,000 USDC in debt at 10% (accrued)

From here, users and defi integrated defi applications can do strategies like increasing your API to 29% or increasing LUNA holdings, all at minimal risk.

These income strategies are why we built this protocol.

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We are still about a month or so away from launch so if anyone has concerns they think we should be looking into, let us know.

2

Hey, thanks for putting this together. Before I can evaluate, I just wanted to point out that the gitbook links are not working.

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3

Hey somethingelse! I just updated them

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4

So basically cross-chain MIM without leverage abuse.

Like the idea but would like to deposit lp tokens / yield tokens and maybe offer some delta neutral LP options for higher yield.

For example, you can deposit aUST on mirror and borrow apple then yield farm with the apple. This position is delta neutral and generates higher yield than just aUST alone.

Now if that’s all baked in so all I gotta do is borrow usdc on solana against my collaterals, deposit into your machine and earn an additional 20-40% thanks to the wonders of delta neutral and borrow against that for a self repaying loan then we are talking.

I would also add that anchor won’t sustain 20% for long so the DN lp idea will help you maintain solid yields on deposits.

Other option to increase yield is bpsidp and Altered protocol $ALTE

Both are 1:1 USD pegged stablecoins that have high yield bearing options (between 40%-100%+ APR).

Tons of options + competition in this space but I want a cheaper alternative to MIM so I hope yours succeed. For an idea I’m delta neutral 50% apy on some of my collaterals on other protocols and 80% liq LTV so if your cross chain do some exploring on your yield agg options, esp since aUST is synthetic ybt stablecoins.

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5

Great input that’s a really good idea. Absolutely stupendous.

Let me know if this is right:

You want to use aUST as collateral to then receive USDC in return at a 0% APY?

I really like that idea and is something we can for sure implement. It lowers the risk on both parties.

We’re also doing a 90% LTV to start. It looks like most delta neutral I have seen do about 50% like Alchemix. I have seen others upwards to 70%.

We think we can take this risk but will adjust if needed. You can see it under Questions i believe in our gitbook about it

We’re also going to be dishing out rewards in our own token as well for anyone who deposits or takes debt at an APY dependent on supply.

Also, a good point to make is we have zero impermanent loss.

6

If you allow using aUST as collateral to get USDC, what is to prevent the user from redepositing the USDC back into advias and keep leveraging by repeating the cycle over and over? Wouldn’t this essentially turn into another MIM?

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Yup that’s exactly it.

Deposit aUST and other yield bearing stablecoins and borrow at 0%/low rate

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We went over every way we can think of this because this issue also exists in the UST method.

How we do is with UST is:

  1. Deposit UST for avasUSTs (savings asset)

  2. Take out USDC (avasUSDCd) as debt with avasUSTs, burn avasUSTs and mint avasUSTc (collateral)

  3. Then on repay, you can’t get the UST out until the next block, This basically stops someone from leveraging into a huge collateral position and using a flashloan to get out. Because the more you do this cycle, the less debt you get back.

So number 3 looks like:

  1. Send in underlying debt asset to repay debt
  2. Burn avasUSDCd
  3. Burn avasUSTc
  4. Mint avasUSTs

avasUSTs cannot be withdrawed until current block > previous repay block

It’s still possible to do this strategy but only those who have the capital will do it or they will end up being liquidated on the CTD max

There is also the method to repay, wait block, withdrawm repeat. But each repay increases the users CTD factor since we release collateral 1:1.

If you or anyone can think of other incentives, feel free to let me know.

.

As for aUST the same applies.

We have a 90% LTV so a 10% debt rate is nothing and compared to most protocols but if we do a debt neutral 0% , it likely will end you with more capital work with strategically.

We also decided against debt neutral in favor of asset diversity but we’re going over if we should make extra custom vaults for assets like aust. because i do really like that idea.

My only concern with aust method is I’m unsure if Anchor or Terra would want this because it will heavily add to the Earn side.

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So if I have coins in a defi wallet other than Anchor Protocol they can be used as collateral for a loan for DAI. Which can then be swapped for UST, converted to aUST, and held in Anchor Protocol Earn? Or am I completely off track? I’m holding a bit of USDC/DAI LP tokens. Could they be used as collater or would I need to redeem those and convert them to something else?

11

For collateral, you will need either UST or AUST - currently. We’ve had some really good ideas from the community, one of which we are currently implementing. Those in return will get you DAI or USDC. So if you have deposits in Anchor you can use your AUST, bridge over, and receive USDC with you can then swap back to UST and bridge back over to Anchor for depositing again. This would increase the APY 45% to about 29%.

We haven’t mentioned it but there is a ton of integration opportunities we hope to build a fund for. Any developers interested, feel free to reach out

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So would you like AUST for USDC 10% APY at 90% LTV? It’s essentially the same but AUST is streamlined now from your integration idea. Or were you suggesting an even lower APY?

Do you want to share any of your current strategies along with APY and LTV’s?

I see most protocols are doing 50% LTV, especially delta-neutral ones.

Basically, the question is, would people rather have 50,000 at 0% APY or 90,000 at 10% APY.

To compare these annually:

Advias - Delta Positive:

  1. 100,000 Collateral
  2. 90,000 Debt
  3. Send 45,000 to Anchor or 20% APY to get back 9,000 (amount owed)
  4. 45,000 Free to invest
  5. Walk away with 120,000 + investments

Delta Neutral:

  1. 100,000 Collateral
  2. 50,000 Debt
  3. 50,000 Free to invest
  4. Walk away with 100,000 + investments

Let me know what you think. There is still about a month to deploy so we can hone in these ideas with you and the community

13

Great. I may start depositing UST into Anchor’s current 19+ % in preparation for your methods. I’m just a crypto–idiot, certainly not a Dev. I hope there will be simple steps to follow.

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…simple steps for using Advias, I meant. I already know how to use Anchor :wink:

15

how has this been going? am interested in progress

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Hey, thanks for checking in!

We’re on track and waiting for XAnchor to release which is the new ethanchor version for all wormhole integrated chains. We’re 95% complete on EVM contracts (solidity) but the remaining 5% is primarly testing and gas optimization.

We’re working on our Solana integrations in Rust as well as making a Sister Protocol we will announce nearing launch that we will launch on Terra more than likely.

I did an interview going over Advias and answered some questions here: Terra Investment Strategies: Advias Workshop – TerraSpaces

It was hosted by Rebel DeFi and Orbital Command

Also, feel free to sign up to our waitlist for the IDO https://www.adviasprotocol.com/

You can also just follow our Twitter for updates but the email list is just another outlet for Advias updates

twitter.com/adviasprotocol

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Awesome, so glad to see the progress!

Question but will you be able to implement LP mortgages? Such as ANC-UST or UST-USDC (maybe with leverage even?)

Space is evolving rapidly and I think the liquidity in markets has been growing at a strong pace despite recent events and concerns.

18

If you mean implementing our own LP system, we won’t be doing this. Although, we will likely add LPs as collateral but it’s likely only stable LP pairs. Something like what curve offers. So thats a really good idea

Our most immediate plans are to implement assets like stLUNA/bLUNA, etc., curveFi stable pairs, and other yielding assets available on the local blockchain or bridge versions.

In the beginning, we will launch into simplicity and then add more investment instruments afterward.

The issue with ANC-UST is it would be harder to guarantee delta-positive loans without specific pairing vaults since the overall price of the LP can be volatile due to one being a non-stable asset and other LP-like functions which cause pricing inconsistencies.

With stLUNA, we can pair directly against LUNA as debt to continue to guarantee the positioning goals

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19

Is this an announcement or a Prop?

Cause if this is being implemented soon,am starting doing backflips right now!!!
ONE thing that most Lunatics using the ecosystem have in common,we NEED more in-chain borrowing option,without having to go to AAVE or FTM or any other platform to fulfill our lend/borrowing needs.
New proposal about 80% LTV is just what the doctor ordered-this is MINDBLOWING!!

Obvsly we dont need Degenbox-style tactics-not all of us have a WallStreetBets backgrounds :smiley: (altho some exposure to LVRG would be nice),but the current 60% LTV is just too limiting.

Plz keep us informed whether this is happening,in my humble opinion this is exactly whats needed to attract investors and incentivize borrowing!! :love_you_gesture:

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20

Sorry if this was asked before, but how well is it going to function when Anchor’s APY will drop to 10%?

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21

So we’re actually not launching on Terra but the protocol is interoperable and uses bridging to get into Terra. Although, we are doing another protocol on Terra we’re going to announce sometime!

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