Change Protocol Workings

On anchor, people use bLUNA, bETH, bATOM, or wasAVAX for collateral, all of these assets generate revenue from their staking. So when someone uses them as collateral, the protocol takes that yield and sells it for UST, then if that money can support current needs we give that money to depositors and put extra into yield reserve.

The problem with this is that in good months when revenue from depositors makes enough money, profit gets put into yield reserve and that yield reserve doesn’t do anything.

I suggest that we don’t sell all that yield I suggest we sell 80%-90% and keep 20%-10%, and put it into yield reserve, this would make it so that yield reserve generates income for protocol, then we sell 20%-10% of this yield and put it in yield reserve as UST.

The main benefit of this is that yield reserve would actually generate revenue, bcs currently yield reserve is just sitting there and leaking.

We are moving away from basset model. Starting with sAVAX and going forward we are not taking the staking reward anymore.

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this is not just about bAsset model, it’s about treasury generating revenue, instead of just sitting around.

For sure, however, most of this above was written on basset rewards and not selling part of them. Going forward it is all going to be UST so there is nothing to sell.