# Addition of LunaX as collateral on Anchor

**URL:** <https://forum.anchorprotocol.com/t/addition-of-lunax-as-collateral-on-anchor/4453>\
**Category:** General\
**Created:** [April 21, 2022, 5:35am UTC](https://forum.anchorprotocol.com/t/addition-of-lunax-as-collateral-on-anchor/4453 "2022-04-21T05:35:43Z")\
**Posts on this page:** 1\
**Showing post:** 14

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**Author:** ![Spaydh](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/spaydh/32/1140_2.png) [@Spaydh](https://forum.anchorprotocol.com/u/Spaydh)\
**Post date:** [April 23, 2022, 12:57pm UTC](https://forum.anchorprotocol.com/t/addition-of-lunax-as-collateral-on-anchor/4453/14 "2022-04-23T12:57:03Z")

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Hey @AgilePatryk, good to see we have similar thoughts!

I was wondering how to incorporate an auto compounding token within Anchor’s current frame of work too, so I had a look at the sAvax listing and I think [@bitn8’s comment](http://forum.anchorprotocol.com/t/proposal-savax-collateral-onboarding/3279/34) is relevant here.

Afaik, the protocol won’t chip away at the collateral, nor will the collateral have its own interest rate: rather, once all legacy collateral types (bLUNA and bETH) have been replaced with ledger token liquid staking derivatives (stLuna and wewstETH), then the interest rate for borrowing UST on Anchor will adjust upwards to reflect the new model.

Please, correct me if I got something wrong.

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