# \[Proposal\] Additional 0.05-2% Anchor Earn interest to ANC hodlers

**URL:** <https://forum.anchorprotocol.com/t/proposal-additional-0-05-2-anchor-earn-interest-to-anc-hodlers/790>\
**Category:** General\
**Created:** [July 2, 2021, 12:37pm UTC](https://forum.anchorprotocol.com/t/proposal-additional-0-05-2-anchor-earn-interest-to-anc-hodlers/790 "2021-07-02T12:37:40Z")\
**Posts on this page:** 4\
**Page:** 1

<div class="post-metadata">

**Author:** ![hisoka](https://avatars.discourse-cdn.com/v4/letter/h/ee7513/32.png) [@hisoka](https://forum.anchorprotocol.com/u/hisoka)\
**Post date:** [July 2, 2021, 12:37pm UTC](https://forum.anchorprotocol.com/t/proposal-additional-0-05-2-anchor-earn-interest-to-anc-hodlers/790/1 "2021-07-02T12:37:40Z")

</div>

ANC token currently has high sell pressure and lacks a “no-brainer” reason to hold.

One obvious solution is to give ANC holders better Anchor earn APY.

However, Anchor Protocol works because the savings mechanism is simple - you deposit UST, you earn ~20%. We cannot change this value proposition.

Instead, how about introducing ADDITIONAL tiered APY above this ~20% to ANC holders.

Something like:

Staking 1000 - 2000 ANC tokens = +0.05% APY on UST deposited in anchor earn  
Staking 2001 - 4,000 ANC tokens = +1% APY on UST  
…

This way, everyone gets attractive yields regardless of whether they use anchor.protocol or the API, but ANC holders get benefits too.

---

<div class="post-metadata">

**Author:** ![puddles](https://avatars.discourse-cdn.com/v4/letter/p/bc8723/32.png) [@puddles](https://forum.anchorprotocol.com/u/puddles)\
**Post date:** [July 2, 2021, 6:10pm UTC](https://forum.anchorprotocol.com/t/proposal-additional-0-05-2-anchor-earn-interest-to-anc-hodlers/790/2 "2021-07-02T18:10:26Z")

</div>

Yes I like the idea but is .05% and 1% enough to entice borrowers? I think not.

---

<div class="post-metadata">

**Author:** ![hisoka](https://avatars.discourse-cdn.com/v4/letter/h/ee7513/32.png) [@hisoka](https://forum.anchorprotocol.com/u/hisoka)\
**Post date:** [July 5, 2021, 11:18am UTC](https://forum.anchorprotocol.com/t/proposal-additional-0-05-2-anchor-earn-interest-to-anc-hodlers/790/3 "2021-07-05T11:18:41Z")

</div>

Also - another incentive to hold ANC is to give borrowers better interest rates.

---

<div class="post-metadata">

**Author:** ![Terrabear](https://avatars.discourse-cdn.com/v4/letter/t/e95f7d/32.png) [@Terrabear](https://forum.anchorprotocol.com/u/Terrabear)\
**Post date:** [July 5, 2021, 1:54pm UTC](https://forum.anchorprotocol.com/t/proposal-additional-0-05-2-anchor-earn-interest-to-anc-hodlers/790/4 "2021-07-05T13:54:58Z")

</div>

I would recommend even more of a differential… Give better rates to those who participate more in the ecosystem (holders, stakers, bonders).

This should be magnified (boosted) for ANC holders/stakers.