[Idea] The importance of increasing the value of ANC

Personally, among some suggestions to increase ANC value, I think the best idea is to pay deposits differentially to depositors who hold or lock ANC.

I’ve summarized some thoughts about this.

  • Let’s start with a simple example.

Based on ANC’s current price of about $3,

Deposit amount: 100 UST
Lock : 1 ANC ($3)

Interest: 20%

Estimated Annual Revenue: 20 UST

Even if locked ANC becomes $0, interest income is about 17%.

The interest rate of 20% is very high, so I think it’s okay to make this cost more expensive.

Because it is just lock up, not consumed by paying ANC, it can be cashed at the end of the lock period. The supply of ANC is limited and continues to decline. Therefore, the value of ANC will remain high, so people are willing to lock up ANC.
(In addition, it seems possible to mix the ideas of segmenting interest rates according to the ANC lock-up period.)

This cost is not a big burden compared to the expected revenue, and at least makes ANC a useful token.

For the continuous supply of UST, it seems reasonable to pay up to 10% interest rates to those who have not lock up ANC also.

Also, the rise in ANC prices should not create barriers to entry for latecomers, or new depositors. Therefore, it would be nice if the ANC and UST ratios continued to fluctuate.

e.g. ANC price is $6, 20% interest payment is made at a rate of 0.5 ANC:100UST.

If there is a demand for ANC in this way and the price goes up,
it will make it more attractive to deposit and borrow bAssets or other assets to be added in the future.
In other words, it generates borrowing demand. This is very important. An increase in interest income from borrowers can significantly reduce the enormous cost of maintaining a 20% interest rate.

It’s just an idea, not an exact number.

Thank you for reading it.