Yeah I agree, probably cross-chain will help a bit but it will probably not be enough.
Another big problem I see in terms of borrowing are ANC incentives (subsidies). They just don’t cut it as an incentive in fact they disincentivize borrowing. These incentives force people to pay an absurdly high borrowing rate (there is not a single protocol that charges 15% for borrowing) and anchor “promises” them it will pay most of those fees with its incentives. Then the borrowers are forced to hold on to a volatile token that could drastically drop in price and in consequence force them to pay a high borrowing APR.
and lets not forget that borrowers are the ones giving away their bLUNA staking rewards! So not only are we exposing them to an unnecessary volatility risk, but we are also taking their profits away from them! that’s absurd and an insult to borrowers!
Borrow APRs should drop to 4-6% and ANC incentives should aim to cover a 1% of that borrow rate.
There is so much focus on setting a stable APY for depositers but then we go and screw borrowers with a LOT of uncertanty and have them pay an unnecessarily high borrow APR and exposing them to high volatiliry and liquidation risks…
How the heck are people here expecting to actually incentivize borrowers?! with THIS?! And now you want to go cross chain which will further dilute borrowing incentives (subsidies) making borrowing drastically more expensive and still making borrowers resign to their staking fees…
MARS will leave anchor eating dust if this doesnt get solved ASAP