# 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:** 2

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### Author: ![Kamil](https://avatars.discourse-cdn.com/v4/letter/k/94ad74/32.png) [@Kamil](https://forum.anchorprotocol.com/u/Kamil)
#### Post date: [March 1, 2022, 11:53pm UTC](https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042/2 "2022-03-01T23:53:09Z")

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I like the proposal, the earn rate will inevitably go down at some point, and this looks like a reasonable attempt at making it somewhat graceful.

A few questions

1. Is the 1.5% ceiling on the periodic rate change expressed in terms of percent or percentage points? I.e. 1.5% of 20% is 0.3 percentage points. Depending on what you meant the resulting rate is either 18.5% or 19.7%.

2. What happens when the yield reserve goes to 0 faster than the rate can adjust and prevent the drain?

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