Thank you for the explanation. I now understand why lately Deposit APY is below 18%.
I agree that a tighter peg to a target rate is aligned with the notion of “Fixed APY”.
But isn’t TFL also contemplating a proposal to lower the target rate?
In order to avoid a scenario where the Deposit APY goes up (due to tighter peg) but soon goes further down (due to lowered target rate), I suggest the two proposals be merged to avoid any confusion. I’d hate to explain to newbies why Anchor’s “fixed” APY fluctuated like a rollercoaster from 20% to 17.9% to 19.5% to 15% in such a short timespan.
Minor note: ±0.2% is indeed “tighter” than ±0.5%. How do you determine that the ±0.5% range is sufficiently tight enough?