Hi to everyone. Newbie here compared to most of you, so appreciate your feedback and constructive critisism.
Past few days the biggest topic that has been on CT related to Luna is how feasible Anchor Protocol is. Idea behind this suggestion is to promote borrowing as in my mind savings will be attractive to anyone as long as Earn feature maintain its yield around 20%.
Few proposals I have seen over last 2 days
Increase LTV 80% - this is good but there is a reason why the LTV is capped at 60% is to help keep the gap between borrowing and earn healthy.
No to MIM degenbox - agreed but there will be more stratergies like this in the future and if we say no to all of these how will we become real degens or make Terra more approachable?
Why don’t we bring in the degen box concept to anchor? The change is to get paid interest in BAssets (or start with BLuna) you bond with and instead of ANC and burn the equivivalent of Anchor which used to be paid previosuly. This will not only help secure the ANC price by making the mechanism deflationary but also it will increase locked up Luna which will create an upward price pressure and also ensure the borrowing will happen at a healthy rate.
Hope to hear from you guys…