# \[Proposal\] Adjusting interest parameter

**URL:** <https://forum.anchorprotocol.com/t/proposal-adjusting-interest-parameter/650>\
**Category:** Community Initiatives\
**Created:** [June 7, 2021, 6:24am UTC](https://forum.anchorprotocol.com/t/proposal-adjusting-interest-parameter/650 "2021-06-07T06:24:19Z")\
**Posts on this page:** 1\
**Showing post:** 4

<div class="post-metadata">

**Author:** ![redkiho](https://avatars.discourse-cdn.com/v4/letter/r/41988e/32.png) [@redkiho](https://forum.anchorprotocol.com/u/redkiho)\
**Post date:** [June 7, 2021, 8:13am UTC](https://forum.anchorprotocol.com/t/proposal-adjusting-interest-parameter/650/4 "2021-06-07T08:13:59Z")

</div>

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](http://forum.anchorprotocol.com/t/authorize-use-of-emergency-community-funds-if-reserves-run-out/565)?  
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.

> [@EJ\_Lee](#):
>
> - I think having 19.5 ~ 20.5 % range don’t have significant diff compare to 19.8 ~ 20.2 %

Minor note: ±0.2% is indeed “tighter” than ±0.5%. How do you determine that the ±0.5% range is sufficiently tight enough?

---

_[View the full topic](https://forum.anchorprotocol.com/t/proposal-adjusting-interest-parameter/650)._