Bitcoin as collateral

We have idea’s in the works in the community like this one here:

these other collaterals take time and liquidity before we can roll them out. Bitcoin is low hanging fruit and won’t be the dominant collateral on Anchor (it will always be Luna). So it should be fine to roll out now, it helps us get these other ones onboard at a later date.

I think having OHM token and its forks as collateral is great for collateral, bcs when you sell you get huge returns, and fees from liquidations if the price goes to shit. Let’s profit from greed

This would be a better proposal for Edge protocol or Mars protocol on Terra.

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I agree, here is filler text

We really need to increase the loan interest for non-yield generating collaterals like BITCOIN. Would have to be at least 19.5%.

If not, everyone who owns BITCOIN will ask for loans at 13.5% and put them to work at 19.5%. And then, Anchor will loose automatically and instantly 6%.

Thats a fact. Not a posible income. FACT.

This old basset model is being depreciated in favor of more capital efficient liquid staking derivatives such as sAVAX, LUNAx etc where the protocol take no rewards. So BTC can be the one exception here.

Problem is that with that model in order to maintain interest pegg, without yield reserve, which would most likely be gone in this model, rates would be huge, 10%-30%, and most of people wouldn’t borrow with these rates, so rate would go even more up, since people would leave system.

I think the veANC will be next proposal. not BTC collateral.

new asset is not helping for anchor protocol for now. @bitn8

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Yeah veANC up next for sure.

BTC tabled for now I think.

When will live? I want to lock my ANC 1 year and don’t want to see the price… @bitn8

contracts are being audited. A new v2.1 borrow model shall be presented soon!

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Won’t a v2 anchor model make the anchor earn yield even more unsustainable if the yield on the bAsset will be kept by the borrower?

It would. For sure. Is that planned for v2?