Building the Yield Reserve by Increasing Protocol Revenue

As the yield reserve continues to bleed, I believe the only long term solution is to add features that drive revenue without increasing demand for borrowing. There will always be a greater appetite for high interest yield on stable coins than borrow demand. I think we can all agree the 19.5% yield is CURRENTLY unsustainable. However, there are a few ways to increase protocol revenue to actually build the reserve and make the 19.5% sustainable. I will list a few and am interested in hearing any other ideas.

  1. Considering the great market demand for getting yield on your assets, Anchor should add staking/deposit options for a number for coins. For example, anchor already has the mechanism in place to take bLUNA and bETH and deposit on Lido to earn the staking rewards. Now, just allow this for any depositor instead of only allowing deposits as collateral for borrowing. Then charge a fee for the service. Anchor can then add bSOL and other L1 assets like ATOM, DOT, KSM, ADA, etc. The deposited assets will automatically be added to a validator on said chain. For assets without liquid staking options or the ability to unstake instantly like ATOM or DOT with 21 day unbonding periods, you can give the option to unstake instantly for a fee. All fees go towards the yield reserve.

Anchor could become the one stop shop for many defi users who would be happy to pay a small fee to have all of their assets earning yield on one platform but still in a decentralized manner. This would attract billions from every ecosystem in yield bearing assets without increasing the need for borrower demand.

  1. They could add a swap option on the site using Astroport on the back end and charge a small convenience fee (.25%). While this may not seem like a huge revenue generator, it will be a constant income stream that should be fairly easy for the devs to deploy. Metamask for example does hundreds of millions of dollars a year in swap fees using uniswap on the back end. They just charge a crazy high .875% convenience fee which people continue to pay.

These features along with the upgrades to collateral efficiency and cross chain LP assets as collateral that the devs are working on can make the 19.5% yield sustainable. Ultimately, Anchor is a business that needs to focus on generating revenue and profits (yield reserve) organically through features instead of banking on ANC incentives and TFL replenishing the reserve.

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I don’t know a great deal about this subject yet, but it concerns me that the yield reserve has gone down by 50% since it was topped up only weeks ago.

Your proposal is to do what Binance and others Exchanges do (offer Staking on assets) without blocking them.

There has to be for sure a cost anytime someone stake and unstake assets. We should know the percentage of that cost.

Then, the cost of implementing that function (ANCs from community pool will be sold for this), and then calculate a possible price for offering that function.

After that, we should make a forecast of how many users will migrate from Binance and other Exchanges in order to stake with Anchor Protocol.

My short experience tells me that even when a new platform offers better costs (take for example the 100 of CEXs currently exist and still Binance daily volumes keep increasing), people feel confortable with their current platform.

So, first question: which platform offers assets Staking but You can instantly unstake?

Second question: what’s the cost of those platforms?