1-1 Use of automation mechanisms. Simply deposit UST automatically proceeds.
1-2 It can be solved by paying the fee when withdrawing money.
There is no process of being added or converted. Everything is done when the user deposits or withdraws UST.
so it does not interfere with mass adoption.
Reference
1-1 : [Proposal] Terralytics - Increase Borrow Demand via ANC Value Capture from Deposit Growth
1-2 : [IDEA] Increase Anchor Protocol transaction fees to support $ANC profit sharing - #22 by dojakron
It’s not a complete proposal, but it’s simple and interesting, and it doesn’t seriously violate interest rates, it’s an idea that can make $ANC a meaningful token.
2. And as many people seem to forget, the additional 450M yield reserves are not only to guarantee interest, but also to change the tokenomics of $ANC to be competitive.
reference: Capitalising Anchor’s Reserve with $450m - Governance - Terra Research Forum
In conclusion, it is very funny that there seems to be no correlation between the UST deposit and the price of $ANC. Even using only 1% interest can help secure liquidity due to rising prices of $ANC and increase borrowers due to increased borrowing compensation, laying the foundation for the platform to grow. Most of UST depositor want to earn 20% interest that is distributed free of charge rather than the growth of the platform.
Burn LUNA, refill UST, sprinkle UST, lower interest when money runs out… stop this meaningless vicious cycle.
Borrowers, and those who stake out $ANC to participate in governance or provide liquidity, should of course be rewarded. For now, they are more valuable than the overflowing UST depositors.