# 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:** 206

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**Author:** ![bitn8](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/bitn8/32/61_2.png) [@bitn8](https://forum.anchorprotocol.com/u/bitn8)\
**Post date:** [March 23, 2022, 8:06pm UTC](https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042/206 "2022-03-23T20:06:42Z")

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> [@Kamil](#):
>
> Hey @bitn8, after this passes, does anything else need to happen or is this going to production immediately?
> 
> Has the code been audited?

This will go live next week. The code has been audited by SCV.

> [@ekryski](#):
>
> At this point it would be better to do a hard drop to a fixed 10-15% APY and just have LFG backstop it again when the YR runs low.

There is no way to know how bringing on the massive amount of new collateral from ETH, Matic, AVAX, etc over the next few months will have. This could buy us more time and help bring the sustainable rate up over 5-7% it has been hovering at. These are all gov params so that they can be adjusted if they aren’t working as needed until it is calibrated correctly.

Even if rates drop to under 10%, it’s still nearly 3x any other savings and lending protocol, and data shows that the rates changes on Aave and Compound have little to no effect on deposit withdrawals.

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