Anchor Flash Shield - ANC utility and user built peace of mind against flash crashes

[bitn8]

Hi Zac,

Thanks for posting this idea. We have some running ideas on another forum thread. I am going to link my response to your post here over there to keep things better organized.

Give Borrowers a chance to redeem their liquidations, while still incentivizing liquidators

Agreed. I think it’s worth exploring the Nexus aUST model. Creating an Anchor liquidation vault where users can deposit UST. Anchor would take a fee on this yield to pay for the protection which helps buffer the yield reserve. However, the major limitation is aUST-UST spread can be wide, even wider in times of high VOL when shit his the fan. On market orders with wide markets, users could lose more on the spread than if they got liquidated. I am confident this changes as more arb and volume o…