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.
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You made a comment âwhat if everyone sells their ANCâ.
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 doesnât 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 doesnât 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 youâŚ
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That being said,
I Will vote YES for this proposal. Thanks for the explanation. 
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Thatâs a horrible and short sighted proposal.
A lot more ANC will hit the market as depositors will rush to sell before the anc value goes down.
There should then at least be an automatic function (optional) to sell ANC and deposit UST into Anchor the instant it hits, to avoid the risk of it devaluing from time of deposit until time of sale.
Worst of all, it severely devalues the currently better than other options tax implications of Anchor. Now if one keeps aUST for over a year and then sells, itâs long term capital gains, since the value of aUST goes up vs interest being paid in kind (or other token). With anc drops now itâll make the anchor anc gains taxable immediately and make it much more convoluted.
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Earnâs 25% $ANC comes from market buybacks without adding additional emissions.
Unless all depositors give up full deposit yields, there will be steady buying pressure.
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And we now that most of the Depositors Will keep $ANC to permanently keep earning the 19.5% as long as they can.
Automatic $ANC buybacks from Market are a great idea. That means those $ANCs (25%) wonât be supplied by holded ANCs.
There wonât be more circulating supply emitted to the Market.
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Naw, I think most people wouldnât mind holding 5% of their UST holdings in ANC to keep earning 19.5% APY.
I donât see why anyone would think this is a bad idea. This proposal promotes holding ANC and to keep 19.5% APR as long as possible while driving more borrowing demand.
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Thatâs a bold assumption. I think most depositors, and the service providers they use (various fiat on/off ramp apps), will mind having such complexity and risk. Itâs not clean APY. Itâs like saying that most depositors wonât mind if 1/4 their US treasury yield is paid in Russian roubles almost. It totally changes the nature of the product.
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One would say that if you are trying to compare Russian roubles to ANC. Very bad comparison. Especially with this proposal. Before cryptocurrency people paid money for this service. Why do you think this is a bad idea? What donât you understand?
So when the poll?
Or do I have to do it?
I think they are having problems with the requirement of locking aUST up for greater returns⌠@bitn8
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But I would take this proposal a step further and say what if you can BURN something like ANC for stable coins to earn 20% APY. Now the will most definitely drive up borrow demand. I guess it would have been better if Anchor Protocol was Luna Protocol.
Because itâs a distraction from the saUST proposal, which is the only way to save Anchor and ensure it has a (sustainable) future.
Abracadabra needs to be dealt with. Hopefully, the devs can do something fast. This proposal can fix that issue. Making a requirement to stake a portion of your UST deposit to ANC to continue to earn 19.5% apy.
So your true intention was to FUD a good idea because you think itâs a distraction to another idea that has no conflict?
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Donât poll this, It wont pass without developer support.
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Not FUD. Just sharing my opinion.
You are right that it would disrupt abracadabra - that is a plus, but with âonlyâ 1/4 of APY affected, it likely wouldnât be enough to really stop itâs abuse. (Esp. 1/4 of soon lower than 19.5% APY.)
I agree with you.
all proposal need to implement.
OK.
I understand. Lets give them more time.