[Proposal] Terralytics - Increase Borrow Demand via ANC Value Capture from Deposit Growth

I think the main issue with anchor Earn is there are lot of mercenary capital (aUst) that is just sitting in the wallet and getting 20% yield which does not provide any benefits to the terra ecosystem.

One simple way to fix this is to reduce the base rate to 15% or whatever number. and separately incentivize (5%) the Protocols/Platforms(smart contract ) which are built on top of aUst( Mirror, Alice etc).

Like how Mars provide a credit line to other smart contract like Mars Field , Protocol like Mirror , or Neo bank like Alice can request for this extra 5% incentive to Anchor earn, and if the use case is contributing to the growth of Terra ecosystem Anchor Earn smart contract can pay that extra 5% to those platform. In that way the basic composability of aUst remains intact and at the same time encourages more utility to be built on top of aUst.

this is a great objective, BUT not so sure about the way (implementation) to do it:

  • The propose implementation is basically giving 25% ANC to depositors.
    My concern with this:
  • This feel forced in a way like a token airdrop. What percentage does people really keep their airdrop token?
  • If fundamentally people does not want ANC token (because they don’t see any value of holding it, which is the case for now) … what makes you think once they are given 25% ANC token, they will keep it?

What probably makes more sense is a more simple concept:

  • If you hold ANC token, then you will get 20% yield otherwise is lower.

That’s a more simple value proposition for ANC token holder, I think.

These proposition has actually been proven at some extent on the CRO tokenomics, that’s basically saying:


Hope this helps.
Danny Iskandar

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my thoughts on the proposal:

Is it just me, or are there a lot of underwater ANC investors looking for ways to make a quick buck?

Instead of trying to create clever ways to pump ANC, focus on why people borrow in the first place. And not opinions. Data.

Has anyone polled existing borrowers to gain relevant insights into their motivations and concerns? Are mechanistic solutions to increase ANC investor returns drowning out other discussions that might actually yield useful solutions to stoking borrower growth?

I’ve seen hundreds of comments and posts discussing technical fixes to what is equally likely to be partially a behavioural issue.

Where are the PR campaigns targeting borrowers on other platforms? Are we really so drunk on the idea that code is law that we overlook fundamentally human aspects of borrowing and investing?



I believe also that giving 25% on ANCs is a really really reaaaally Bad idea.

So this proposal probably won’t get the support of major stakeholders. There is a big proposal from Jump capital coming on capital controls. This will probably garner most of the major staking holder’s support as they worked with major stakeholders and community members. It will require locking aUST up for greater returns. More to come out on this in the coming weeks.


Serious? Many terra users mint their mAsset by aUST. If locked aust is required for high APY, it will push down mAsset supplyment and make incredible high premium much higher. Finally, it will stop flywheel of terra ecosystem. If team want to held aust staked proposal, please dm me. I will run away from terra first.

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I think you need to run away.

No need to accept the all proposal.

Can’t implement all proposal easily.

ve proposal can implement fastly, so team adopt the that proposal

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Hi Folks,

The Terralytics team created a video that highlights potential scenarios of how our proposal would impact ANC token pricing. Our fundamental hypothesis is that more valuable ANC Token will increase borrow demand by improving capital efficiency for borrowers. In essence, providing collateral to obtain UST + a valuable ANC token.

The link for the YouTube Video is here … Terralytics Anchor Proposal - Data Forecasting Simulations - YouTube
A previous YouTube video on Borrower statistics is here … Terralytics - Primer To Anchor Governance Proposal - YouTube

We will be sharing things on Medium in the future as well.



They want to AIRDROP ANCs to Depositors also.

Thanks, but no thanks.

The “free ANC far all” attitude is no good.

@daniskandar @victorsica The moment this proposal gets implemented we would “AUTOMATICALLY” have over $600 million in buyback pressure on the protocol. Again this is AUTOMATIC BUYs, not airdrops. This means if depositors were to sell their ANC they just would be selling it back to themselves.

The protocol would force everybody to buy the token around the clock/daily but everybody has to 1st want to sell and 2nd remember to sell.

But the buyback feature could also be implemented when you make a deposit 5% of that UST goes to buying ANC. We would be making a BIG mistake if we dismiss this proposal.

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I’m a major stakeholder and I would say if we dismiss this it would be a bad idea. I see people on here not understanding this proposal. “people on here talking about this proposal giving FREE ANC AIRDROPS”. :person_facepalming:

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  1. “Earn Yield” paid out to Depositors will be split 75% UST / 25% ANC, until the ANC threshold per wallet is reached. Once the ANC threshold is reached, “Earn Yield” will revert back to 100% UST / 0% ANC.

Tier 0: Earn rate is split 75% UST / 25% ANC
Tier 1: Earn rate is 100% UST

What am I missing @JinOtsutsuki ?

Literally they are saying there Will be given a percentage to Depositors in Tier 0.

So, in that matter, are they or are they not saying they Will give free ANCs to Depositors whom don’t buy ANCs before locking their UST?

Maybe they could explain a little bit better.

Because at this point a lot of people understood as your way and a lot of people understood as my way.

Lets hope they read this and make a case example.

Ok I see now your perspective.

You are saying that right now most of Depositors have no ANCs. So, by passing this poll, automatically their APR will drop from 19.5% to 14.5%.

So most of them will take the decision to purchase the 5% value of their locked USTs in ANCs and then lock them in Anchor un order to keep receiving the 19.5% interest rate.

Am I right?

Or will just apply to new Depositors? And Even so, You think most of them will take the decision to purchase ANCs for the full 19.5% APR?

Tier 0: Earn rate is split 75% UST / 25% ANC, what does this means?

Say: 10k UST deposited, does this i get the 20% yield in a form of 75% UST and 25% ANC token?
So will get about $1500 UST and $500 in a form of $ANC tokens?

YES or NO?

If Depositors have no ANCs by passing this poll the protocol will automatically make those depositors buy ANC with 25% of their yield (meaning 5% of 20% APR) nothing is being given. That will create buying pressure for ANC to incease and protect its value. This will attract more borrowers.


You made a comment “what if everyone sells their ANC”.

That goes for bitcoin and every other token. But in this case, they would probably deposit back into EARN.

What you fail to realize in your video is that the protocol is code and if we pass this proposal it doesn’t have to remember, think, or make time to buy ANC tokens. It will buy no matter what the price even when you are sleeping. Worst case, the more EARN total deposits grow the more BUYING pressure the protocol gives to ANC DAILY.

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This goes for old and new depositors. It doesn’t matter if depositors take the decision to purchase ANCs for the full 19.5% APR. If you deposit UST into earn without buying ANC the protocol will buy ANC for you…


That being said,

I Will vote YES for this proposal. Thanks for the explanation. :ok_hand:

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