Anchor protocol Yield reserve depleting

Watching with anticipation as Anchor Protocol Yield reserve slowly depletes. I know that this was a hot topic on this forum back in June 21. Does anyone know how the Yield reserve was topped up back then?
From my calculations there are about 20 days of yield reserves left. Can anyone answer what will happen if the Yield reserve goes to 0.

I’d do some reading on past posts before asking. This has heen constantly been asked and answered on posts here as well as on discord and twitter… you will get answers faster that way

It hasn’t been topped up, it may be topped up but amount isn’t clear either.

Reserve going to zero would simply mean a drop in deposit APY to a lower and variable one.

That’s it… no biggie


This is correct. Thanks @mariano247


Hmm yes reducing APY from 19.5% to 9% is surely not going to cause any massive exodus from Anchor and Terra ecosystem.

I’m sure the whole 6B of UST is going to stay on Terra, and not be burnt to sell minted Luna or deposited in CEXes and gargantuanly sold.

I’m sure the UST peg is going to hold in that case, and 1000% sure it is not going to wipe all UST leveraged degends on Abracadabra and anyone else who used UST as collateral on other protocols such as Mirror.


If that’s sarcasm I don’t get the joke

1 Like

HI Mariano247, no sarcasm, i’m new to anchor earning, and at the time of posting only could find subjects on this subject back in June 2021 (as stated in my post). This was when the yield reserve was as low as $3m if i read correctly and much less earners and borrowers. Through those channels i can’t find info on how the yield reserve was replenished. Was it through earnings? Like most people on this forum, i want to ensure my investments are protected.

Thank you for your response Lefty

I was referring to lefty’s answer. Sorry

oh ok, Can you clarify what you mean by sarcasm on leftys response.
The more I read into the previous chats on this forum and twitter, it’s positive to see how involved the anchor community are and the intelligence of the contributors.

If Lefty is not being sarcastic I actually agree with him. If yield is reduced to 9 percent I would not leave anchor immediately. I would only start looking for alternatives which do not exist without taking the risk of LPing (other tokens price fluctuations+impermanent loss etc). It would be a healthy update to Anchor if yield is reduced to stop yield reserve depletion.


In my opinion, suddenly reducing the anchor rate from 19.5% to 9% may be counter-productive.
Anchor is the heart of the LUNA ecosystem & if you reduce the rate to 9%, Anchor will see a flood of depositors leaving & then converting UST to some other coins, thus minting LUNA which will inevitably cause LUNA price to tank.

I agree that the rate should be reduced to more sustainable level (say around 12 - 14%), but this should be done in more of controlled (gradual) fashion so as not to cause mass UST selling.

We need a constructive solution to this.

What we need is people that read the forum and not demand solutions out of the blue to already known problems that are on the works.

The yield reserve depleting is a complex and nuanced topic. It requires collective community thought and feedback. It’s not about “demanding solutions out of the blue” it’s about solving a legitimate problem as a group.

1 Like

But what about that yield reserve tho… Number go down…

1 Like

I don’t think everyone on this forum has the ability to come up with solutions, however are concerned about their investments. When people invest in such platforms as Anchor, I’m sure investors feel that the team behind the product would be able to find solutions to any issues that come with their products. However I’m a big fan of how the community is coming together to discuss solutions.

My my unqualified perspective, I feel that borrowers needs to be enticed to borrow (however that may be) and also secure that they won’t be liquidated in an instant. In regards to earners, possibly capping number of earners to that which can sustain the apy payouts, so not deplete the yield reserve. Like any start up cash injections will be needed from time to time. The yield reserve will need to be topped up to buy more time to find the solution. I’m sure there’s plenty of holes in this scenario but there’s my 2 cents.

1 Like

it had been filled thanks TFL, which they seem to want to do again.

1 Like

I am very curious to see how things will unfold in the following 13-14 days. The depletion rate hit 2 million/day at some point. I wonder if someone is actually planning something or is everybody watching? Is the earn rate going to be reduced? Is the yield reserve going to be replenished? What’s the reason for this annoying silence?

Do kwon need to start acting like an adult. Im afraid this poll was just a joke for him.


I think we should end Anchor airdrops. If we remove that source of sell pressure it
A) Will give Anchor a longer runway to incent borrowing
B) Less sell pressure means more valuable Anchor tokens, meaning better borrowing incentives

1 Like