I know similar topics have been brought up around better ways to repay your loan. I’d like to submit my thoughts. Here are a couple scenarios and a solution.
Scenario 1: You’re out of collateral and your LTV is too high. You’d like to pay down your loan so you have to withdraw small amounts of existing collateral, liquidate then repay your loan. Not only does this take a considerable amount of time and effort it places the borrower at higher risk of liquidation while doing so.
Scenario 2: Your LTV ratio is max out and you’re also out of collateral–making it impossible to withdraw funds to repay your loan.
Solution: Enable the ability to liquidate your own funds to repay the loan. Collateral is cashed out and immediately applied to the loan.
Even Better Solution: In addition to the above–add take profit and stop loss functionality to help automate these processes and provide peace of mind.
I’m tempted to mock these up so everyone can see it but I think I’ve described my thoughts clearly. If people want me to mock them up let me know.
I think these are wonderful ideas! It would give Anchor a competitive edge versus many lending platforms and I can’t imagine it being too difficult to implement, as we’re automating a process borrowers do on their own.
This would improve ease of access. I especially like the stop loss idea / mechanic. It would provide the same value of collateral protection / insurance for borrowers essentially for free.
I can imagine the implementation going as so: anchor offers the option to put your collateral up for liquidation at a 1-5% premium (for liquidators to accept risk of liquidation) after a certain LTV threshold is reached, under 80%, set by the borrower. This way when liquidation occurs the borrower recovers more of their capital than if they let it liquidate at 80% LTV. This should also spread out liquid capital over more price points improving efficiency.
This compliments the recent proposal for 80% LTV very well.
I think Nexus will probably plan some of these features. I imagine they will expand their price offerings to offer leveraged exposure to more than just aUST yield. Although this would be very useful if you took borrowed UST off chain.
This would be great, could even be a part of a larger feature set of flash loans, monetize the idle UST and that feature could use a flash loan to pay down your loan, unlock the collateral and sell just enough to pay back the flash loan.
Has anyone seen the guardians of the Galaxy thread? I think this should be combined with that and anchor v3 threads to start building a list of features the community wants implemented next.
All three threads can be combined and made to work with eachother as they all directly relate to loan safety and increasing Anchor value. I believe both are what our focus as a community should be on voting into the pipeline, along with some UI changes to bootstrap.
I have some time tonight so I’ll see if I can go through all the information and organize it into a new thread.