I haven’t been following the discussions here about the reserve being depleted, however I have been tracking how anchor is holding up.
The main things I wanted to know was
*Days to the reserve depletion?
*Days to cashflow neutrality?
*If depleted and we effectively have a floating rate, how much is that?
Main points being;
Daily floating yield rate is surprisingly high, 12-18%. With a 7d mean of 15,1%.
8 of the last 10 days, cash flow neutrality will be achieved close to or before reserves are depleted.
For the last 11 days collateral are on average growing faster than deposits.
So even if we don’t see a bETH addition until reserves are depleted and we move to a floating rate. The floating rate seems sufficiently high that in my mind, depletion is not an issue. At least for whatever time there’s left for the deployment of bETH.
About the calcs:
Assumes 33% LTV
Used current day Interest both on borrow and collateral yield on last days deposits/collaterals.
Looks like projected days to neutrality will come up if collaterals don’t increase at a higher pace this week, 30d ma is flattening out.
I’ve used daily data from;
On borrow interest from dashboard and daily staking yield from terra station.
Ok im probably ngmi. An assumption made in the first post was very wrong. Terra station yield is not the bLuna yield, ie airdrops is not market sold for bLuna yield:
Couldn’t find any data on network yield alone but if we assume that network yield = terra station - mirdrop - ancdrop then yield is 3.62% for today. Since there’s no history I assume 5% APR for all dates backward.
Of course this paints a completely different picture for both the days to neutrality and floating yield:
This makes me lean toward some measure in the mid-term and wait to see if
*C-5 tax and reward changes is enough to sustain lenders.
*Other collateral deposits(bEth,bAtom etc) increases collateral enough.
@ryanology045 I think this is correct, but can you confirm that MIR and ANC weekly airdrops aren’t available to bLUNA? I believe that would also imply that MINE and future airdrops from other coins also would not be available as part of the staking yield. Is this something that can be changed or is there some technical reason that makes this extremely difficult/impossible?
https://docs.anchorprotocol.com/smart-contracts/bluna/airdrop-registry
“The Airdrop Registry contract manages the fabrication of messages relevant to claiming and swapping tokens airdropped to Luna delegators. Airdropped tokens to the bLuna Hub contract is swapped for Terra USD and distributed as bLuna rewards.”
As far as im aware the airdrops are not currently being used, and imo should stay like that for now, if the anc/mir are being sold during a bear market it would not be well for eaither protocols, i belive there is better use for them, just not sure what as of yet, maybe somthing down the track, there is so many rash thoughts going arround trying to keep this short term high apy, and thats the thing i worry the most, a floating rate here and there isnt unhealthy for anchor, giving out “free” money from Community fund etc, isnt healthy for anchor at all, i see every other stable coin is sitting at about ~3% and we have people stressing over a couple %, thats the main concern imo. Once bETH and other collaterals are added it will go back to normal, and we should be looking at long term solutions then bandaid fixs, like what happens when down the track anc emisions run out? Wouldnt the airdrops be better suited for then? Then exhausting every last resource we have now?
