Earning yield from UST deposited into Kujira

General
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Hello, came from the community AMA today on twitter and thought I’d start a discussion here!

Been seeing some talk in the Kujira community about enabling UST deposited into Kujira to earn yield in Anchor. What I heard from Kujira was that there’s no way to do this in the current state of Anchor’s smart contract and that this is being explored by both Kujira & Anchor.

Has there been any development on this on Anchor’s side and if so, any updates? I don’t know the technicalities of why it is not possible at the moment so maybe someone from the Anchor team can explain as well!

Another option I thought of would be to create an aUST pool to bid for liquidations.

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i think allowing aUST is a decent-sized upgrade to the contract; aUST can potentially be illiquid if utilization is too high.

maybe kuji can give out its token as rewards emissions to those who bid thru their platform?

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Correct. Slippage would be an issue right now in my mind i.e. market orders on aUST to UST could be sizeable without limit orders. Calculating that slippage before it executes would be hard as well to know what exact amount to sell. Also in dev resources would be a sizable build and from my understanding, we need some minor contract update to the aUST. See this post regarding this - Suggestion: Short-term Enhancements for Anchor Protocol

So this might be something to revisit once more liquidity is in aUST-UST and updates to the protocol happen.

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Thanks for breaking it down!