Borrowed Value goes up automatically

General
1

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.

2

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

3

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.

4

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