# Dynamic Anchor Earn Rate

**URL:** <https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042>\
**Category:** Mechanism\
**Created:** [March 1, 2022, 11:08pm UTC](https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042 "2022-03-01T23:08:41Z")\
**Posts on this page:** 1\
**Showing post:** 124

<div class="post-metadata">

**Author:** ![narco78](https://avatars.discourse-cdn.com/v4/letter/n/8dc957/32.png) [@narco78](https://forum.anchorprotocol.com/u/narco78)\
**Post date:** [March 19, 2022, 2:47pm UTC](https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042/124 "2022-03-19T14:47:25Z")

</div>

I am a fan of this proposal, but not right now. There are a number of other things that need addressing before rolling out the auto rate adjustment (which is of course going to be continuously lower).

Why is the proposal below being overlooked by Anchor team?

This is the lowest hanging fruit for addressing the yield reserve decline, by a country mile. And it is specifically vital to address it head of the AVAX Anchor release.

> [@\[Proposal\] Staked aUST](http://forum.anchorprotocol.com/t/proposal-staked-aust/3588):
>
> Current situation One of the risks to Anchor’s sustainability is the process of leverage yield farming Anchor’s earn rate and potentially getting over 100% APY, greatly increasing the depletion of the yield reserve. This is done by using aUST as collateral, borrowing against it and repeating the process multiple times. e.g.: Abracadabra’s [MIM-UST degenbox](https://abracadabra.money/pool/26). As the ecosystem evolves, new projects will offer similar strategies. Proposal To mitigate this risk, we could create a “staked” non-transf…

---

_[View the full topic](https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042)._
