Dynamic Anchor Earn Rate

how is this possible? wouldn’t we need a followup gov proposal to actually connect/migrate the updated smart contracts?

There’s not enough time. We only have two months until the YR runs out in May. This is only going to slightly slow the drain, at best.

Do we have commitment from TFL or LFG to top up the YR? When? And until when? And up to what amount?

Otherwise, even with this implemented, the YR will crash at zero, and the yield will go massively (2x+ down), leading to a panic and bank run. It’s less the two months away. We can’t bury our heads in the sand and pretend it’s not going to happen. It will, and there’s too little time to change the trajectory as we are at terminal velocity on the impeding YR depletion.

I think that this proposal might work if there’s an initial cut to the rate to about 15%, slowing things down enough that the 1.5%/month drop eventually stabilizes before YR hits zero. As things stand now, there’s absolutely no chance this can work imho.

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Why don’t we do this? This will solve looping problem instantly right?

From onchain data, it shows that the yield reserve suckers are a very small number of wallets.

I have no idea. Perhaps Anchor/TFL believe leveraged looping is positive organic growth.

It makes no sense that they are allowing this to perpetuate. Even the Yeti Finance developers are scratching their heads…


It’s almost like TFL themselves are backing these parasitic abusers of Anchor…

Oh wait, Kwon did actually endorse it himself publicly (Do Kwon 🌕 (@stablekwon): "Decentralized money wins when $UST meets $MIM Every money decentralized on every blockchain, all magical You don't know what's coming 🐸🌕" | nitter), and has never apologized for that lapse of judgment. And he’s done so again and again (for example, see Do Kwon 🌕 (@stablekwon): "Don’t fade $MIM , magic is literally in the name Kind of like fading the moon tbh, be smart" | nitter).

If he and/or TFL still think such blatant abuse, not to mention association with known criminals and scam artists, is allowable - as seems to be the case - then there’s 90%+ chance that a year from now, even six months from now, Anchor will no longer exist, and a 50%+ chance that the entire Terra system will implode and collapse. That’s the inevitable fate, each and every time, of such abusive practices. After all, there’s only so much blood the vampires can suck, until their host drops dead and lifeless…

If Kwon thinks that he and his scammy criminal friends can change the proven course of history - where every single time such abusive practices end up in total disaster - then his ego is bigger than that of Ozymandias. And we all know what happened there. To borrow from Shelley,

(Kwon foolishly thinks)
Look on my Works, ye Mighty, and despair!
(future of Terra and Anchor if Kwon is not ousted soon)
Nothing beside remains. Round the decay
Of that colossal Wreck, boundless and bare
The lone and level sands stretch far away.

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Well I’m not saying Do is abusing it, maybe he has a different point of view. I have no problem with jumpstarting a protocol, but I feel like we have good traction already.

With that model we could have anchor giving aUST 10% yield and people who stake the aUST for let’s say saUST will get additional 10% or whatever the percentage is. So the looping is in anchor itself with a 10%+10% cap apy. (Of course the numbers can be changed).

This way, apps that are built on anchor earn side will be able to stake on their end and there will be less looping problems since they only have 10% to play with instead of 20%.

I like this proposal but I think there must be a better solution to this.

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The text poll allows for this to be updated.

Can you pls share reliable sources on the connection of DO, TFL and criminals you stated please?

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Have we got a timeline for this?

Within the next two weeks. I’ll post a concrete time early next week

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Well it seems this proposal has already had the effect of capping UST demand already.

The UST/USDT peg on Binance has been restored after over a month of being above it.

It will be interesting to see how things looks when the yield officially starts coming down.

From your post, its clear that you have personal problem with Kwon, so go solve it directly with him, don’t involve us with your mess…

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That’s not how spot markets work there is a market maker to supply liquidity and it’s a lot more complicated than just some money market governance proposal, what your showing is baseless and has nothing to do with this. short UST if you want it’s easy just borrow some there’s plenty available here you can use avax for it too.

For me if it does happen like you say I get to pay some loans at a discount so power to the prop.

Also keep in mind that UST is backed by bitcoin lol not just Luna (I think I read somewhere lfg is accumulating 10 Bn) so I’m ready for discounted UST finally.

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it’s not, at least not right now, there’s a proposal but god knows when it will actually be implemented.

What we can say for sure is that insatiable demand to pay a premium for UST (purely for Anchor yield) has evaporated overnight.

Who knows how this will playout but that fixed 19.5% was what has been driving that demand. What’s it going to look like in 3-6 months as yields crumble? We shall find out.


LFG / Jump have been buying up the BTC reserve, according to some reports they have done some of this via Binance, UST leaves terra but you can’t buy BTC with UST on Binance, so they most likely swap to USDT… that’s what is most likely causing the drop due to the several millions involved in the transactions.

Let’s not jump to conclusions, most of the community is not even aware this passed.


very interesting, thanks for your detailed answer. Critical thinking should always be encouraged. Don’t understand why this post got flagged though… ?

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Maybe it was because I moved my money out… Lol. Wasn’t THAT much… I’m feeling a lot better now though.

When the demand for the 19.5% stops, I hope the demand for cheap borrowing of $UST can replace it!

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