Borrowed Value goes up automatically

Yesterday i matched up my Borrowed Value to an even number .00, but since then the borrowed value went up by .471 (almost half a dollar) without me doing anything.

(i felt like this trend was happening before, but i wasnt sure until now)

In the same time, my earn deposit went up by almost half of that. Meaning that if i didnt also earn ANC, i would be down by almost .25 USD

GIven the Net APR is possitive, i would assume the loan wouldnt cost me money, but seems like it does and im only in the positives when I count in the value of my ANC tokens. So my profits arent half as good as I would assume. (Given that whatever i earn by “Earn UST deposit” is eaten by the borrowed value growing at twice the speed)

Am i missing something?

Seems to me like it isnt worth the risk at all and id be better off just staking luna.

After half a year of borrowed funs and depositing almost all of them in “earn” im down 18 dollars if i wanted to “cash out” and return the loan. So id have to sell a couple of ANC just to be able to return the loan.

Pretty sure that the interest rate gets applied directly to the loan while the borrowing rewards accumulate as ANC tokens.

I see now that the Borrow APR is 25.81% and Distribution APR 36.5%
But it doesnt even seem to match up that way.

Lets say, that since last time i withdrew my ANC my interest grew 10$. Given postitive APR 10% i should have 11 dolars worth of ANC right?

But i dont, i have around 80% and ANC price grew the past few days.

Maybe the ANC token lost market value since you were rewarded in it?