Problem
Active community members and ANC Stakers are faced with price drops of the ANC token, while ‘‘lazy’’ non-community members are profiting from their high depositrate of 19,5%.
When the the yieldreserve is filled with 450m extra from LFG, the yieldreserve on Anchor keeps dropping daily, because Deposit value exceeds Borrowing value.
So, Deposit has to be lowered and Borrowing has to be increased.
SIMPLE SOLUTION
Add a simple restriction for any Terrawallet before they may enter the Deposit rate of 19,5%. For example: you have to have at least 500 ANCS before you can enter the deposit rate.
** RESULT**
Deposit will be lowered and demand for, and price of ANC will rise.
ANC community members will be rewarded (because the price of ANC will rise).
Decrease of the yieldreserve will be lowered (because Deposit will decrease).
Why do people assume that just because you force someone to do something, that they will do it?
Incentivizing the usage of ANC isn’t the same as forcing, if no one deposits there’s no UST to borrow from. Holding ANC is the same as investing in the protocol, Anchor needs to fix it’s revenue streams and then holding ANC will become attractive with a revenue share model.
Actually I’d have it different. I disagree with the 500 ANC, but I would need to own a symbolic 1 ANC, and to receive your UST interest, you need to vote.
To deal with backend systems that utilise UST, I would suggest we have a whitelisting system that doesn’t allow volumes larger than 1 million UST to gain interest. Hence if a second protocol decided to run another degen box, we’d have to allow to before it is applied.
I wouldn’t force anyone to vote. Put simply, it scares me if anyone would be forced to make an influential decision without having to understand the question. (A chunk of Anchor users are not even native English, don’t forget that)
I am not a fan of fixed token amounts. This rewards early buyers of ANC or people that front run the poll get ahead of price. Regular users coming in later are forced to pay obscene prices to get boosted yields. They also risk being rekt if they want to exit if the price crashes.
SOLUTION
Require users to hold 0.1% of ANC token based on their deposit value at the time of deposit to get boosted yields.
Example - If a user deposits $100,000 they must hold 0.1% ($100) of their deposit in ANC tokens at the moment of deposit.
For the user, this means it does not matter what the price of ANC is, they just need to hold 0.1% of their total deposit in ANC when depositing.
This will still create buy side pressure on the ANC token and all depositors are treated the same, regardless of the current ANC price. A fully fair and proportionate system for all and people will be less susceptible to being crushed if the price crashes.
There is another option that doesn’t require a user to hold, buy or do anything with a volatile token.
Every deposit into Earn requires an additional 0.1% fee. That fee is used by the protocol to automatically buy ANC tokens.
Those ANC can be re-directed and stored in a community pool for use at a later date. They can even be used to prolong emissions once they end to perpetually support borrowing.
This is just one of many ideas that can be done to give ANC more value and utility.
