Awesome! Nice to see multiple audits are already done as well (got a link handy?).
I am wondering why we are only starting with 6 validators? I think we should shoot for starting with 10% of the current validators. As of now, those 6 listed above include mostly the top current delegated-to validators on Cosmos. We should add others that have an excellent track record, as I am sure there are more. Just to note, currently the list of 6 includes the #1, #12, #13, #15, #28, #49 validators on the network. I think we should add more not in the top 20 as well to promote decentralization, as long as their records are up to snuff of course.
ATOM staking rewards are currently ~15.8% but stkATOM rewards are 12% so we’ll use that (why the large difference?), the current average Anchor borrow LTV is ~46%, and Borrow APR is 11.8%. This means that as long as bATOM depositors took out an average LTV and simply put it in Earn, then Anchor would gain 8.2% towards the protocol (100% x 12% + 46% x 11.8% - 46% x 20%).
This has a positive effect on the Yield Reserve.
However, as @KashHurley mentioned above, if the Max LTV is set to only 60% users may be less likely to take on fees/opportunity cost amounting to 17-20% (only 13-16% if you include ANC rewards). It is worth noting that with ATOM’s staking rewards, as shown above, a higher LTV would still contribute to the Yield Reserve and make it more worth the opportunity cost. I don’t know if 60% was selected due to the more complicated redemption process post-liquidations though, so that should definitely be considered as well.