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

Flash dips can occur and recover within minutes so by the time users are made aware of the event, they may already be liquidated. The reason for this could be standard market activity but as we’ve seen recently may be the result of an oracle error

ANC is under utilised and there needs to be more reasons to hold it

To tackle both issues, I am proposing a new mechanism. Users deposit ANC into this mechanism, the value of that ANC is then used to shield user from liquidation for a set period of time (5 minutes - 30 minutes?), after which the user is liquidated as normal

Theres a 30 second dip during which a user would be liquidated $1000
User has $500 worth of ANC deposited into Shield
The $500 which is not covered is liquidated as norm, the other $500 is covered for x minutes so the user may pay back their loan and avoid liquidation.
Once x minutes is up, temp protection drops and any value still over is available for liquidation.
Alternatively, any value still over is paid off by ANC first - however this may create huge selling pressure for ANC essentially weakening all other shields

Ideally the amount deposited here would count as GOV funds so we are not drawing away voting power

Would love to hear everyone’s thoughts! I have no technical knowledge so would especially love to hear if this is possible or even a good idea from a technical/logical POV

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.

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