Anchor AMA (Nov.): Post your questions here!

Hi Mirko, there are two parts to the answer as far as I know.

  1. Offering access to the Degenbox strategy from Terra is not something Anchor can do, the matter is entirely in the hands of the Abra team. IIRC, Dany mentionned considering such an implementation in the future, but I wouldn’t expect it to come online any time soon.
  2. The strategy itself currently relies on the legacy shuttle bridge, but TFL and Abra are working on the transition to Wormhole, which will make it more efficient, more profitable and more decentralized.
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As Anchor grows and matures it is becoming increasingly more complex financial institution. You mentioned in the past AMA that you expect some guidance and direction from the community on the future development of Anchor. Do you think it is feasible that this sort of complex financial services organisation can be run effectively by a community vote? Most of our community has no experience in financial services sector and will not be able to effectively weight complex financial decisions in the process of running what is essentially a bank. What do you think is the right balance between central management of Anchor protocol and community decision-making?

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How can we uplift the value of Anchor ? Is it possible to add a transaction fee to transactions on Anchor for savings, lending and borrowing to be used to provide rewards to anchor stakes, burn anchor, Luna stakers and an anchor community pool.
I would like to see one of the biggest banks in crypto reward its shareholders please.

ANC needs more uses and more reason to hold, what if anything, is currently in the works?

May I suggest a flash dip shield mechanism to give users a fighting chance against instantaneous smart contracts?

If loan value were to exceed limit, the value of the deposited ANC could be used as a temporary shield for a certain amount of time, after which user is liquidated as usual

Example:
Theres a 30 second dip during which a user would be liquidated $1000
User has $500 worth of ANC deposited
The $500 which is not covered is liquidated as norm, the other $500 is covered for 5 minutes so the user may pay back their loan.
Once 5 minutes is up, temp protection drops and the remaining $500 is available for liquidation - or absorbs the ANC

Ideally the amount deposited here would count as GOV funds

Why not? The more use/liquidity there is for both coins the better!

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I would like to reiterate the question about the audit timeline. Is there a plan for a regular security Audit for Anchor?

Given the TVL of the Anchor (top 10 aApp across all blockchains) the value at risk is very significant and regular audits is something the all stakeholders, borrowers, depositors and governance token holders, would like to see. The audits that were performed previously might already be out of date, considering constant development of the Protocol and also more and more elaborate exploits used by hackers in DeFi space.

Question on insurance. In one of his interviews Anchor GM mentioned that you are working with external tradfi insurance providers to set up initially small insurance fund for the protocol. Have there been any further development with it? Are there particular difficulties that make setting up such policy more complex?

Question, what would happen if borrowing incentives run out? (ie. no ANC token left to give out) I know that right now buyback schame for ANC tokens are being explored, but isn’t there any other solutions like using the yield reserve with something like White Whale? This way Anchor’s yield reserve would increase while making the network more secure.

What would be the plan to still incentivize borrowers to put in collateral? I think one day people will not want to pay 25% to borrow with a volatile asset as a collateral.

What is our plan for the bear market when collaterals don’t move up so much and people are taking their collaterals out of Anchor? Will the lenders have to be disincentivized?

Thanks!

What are the plans to attract more borrowers to Anchor? Are there any plans to implement undercollateralized borrowing, for example in partnerships with more traditional institutions?

One of the new/upcoming projects on Ethereum Network is called: “The Standard Token” (TST): https://thestandard.io/

You can lock your own assets in a ‘vault’ and they will print/lend a stable coin to you at minimal fees.

TST feels like potential strong competition for the borrow portion of Anchor - is borrow sustainable with +ve borrow rates?