We are onboarding sAvax as a collateral in this days.
sAvax works differently from other collateral, Eth and Luna pay a yield to the holders that Anchor can collect to fill its reserve, but sAvax is an autocompounding version of Avax, it’s like our LunaX or aUST, it’s value will depeg over time from the principal because of the interests that are received from the protocol that minted the tokend and that it’s coustoding the principal (Avax).
Because of that I’ve understood that this auto compounding asset if used as a collateral will have a higher borrowing cost in order to compensate the lack of the yield generated by the blockchain.
So, taking in consideration that and also that Thor chain almost ready to connect with Terra-Luna we should really think to onboard Bitcoin as a Collateral.
After all it’s almost the same thing that the Luna Foundation is doing at the moment.
We could store BTC as a collateral on Anchor and generate decent yield by borrowing UST. In this way everyone could make its personal DIGITAL GOLD BACKED DOLLAR and go back to the good old days where the paper was backed by something with a real value.
Remember that bitcoin is still little involved in DEFI, so this could be a big opportunity for Anchor.