[Proposal] veANC, Anchor Voting Escrow Tokenomics

if you hold veANC and borrow against bLUNA (or any other collat type offered on Anchor), you can vote to increase the amount of ANC emissions when borrowing (making it more “powerful” by lowering the cost to borrow)

example: stader labs wants to attract more users to borrow against LUNAx therefore I buy up a bunch of ANC, vote lock that shit, then try and route more anc emissions to users who borrow against LUNAx

This is my current understanding and it might be flawed so take with a grain of salt


no emission control on this proposal.

your example is maybe previous veANC model.

  1. Is the initial gauge boost function meaningful only when borrow model v2.1 is applied?

  2. If you entrust LUNA, do you mean that it will be exchanged for liquid staking assets that are exchanged inside the anchor? And when you adjust the ratio, do you mean to adjust the gauge with veANC?

  3. If number 2 is correct, what are the benefits of LSD providers allocating more of their LSDs? Is it trading volume?

  4. After passed the poll, when applied veANC?

So, just to make sure I understand correctly, beyond the voting power, the fundamental value of veANC is that it entitle lockers to 50% of all the staking rewards generated by the assets deposited in the protocol. However, to be eligible to you share of those staking rewards, you need to vote every time there is a governance poll. Did I get that right?

What if there is a period with no poll - do veANC lockers that voted on the latest poll still receive 50% of the staking rewards?

Read the article again.

veANC has no staking interest by default.

If you vote instead, you will receive 50% of the existing ANC staking interest for a limited time.

You do not receive staking interest on the deposited assets.

Early veANC seems to be used to simply increase the influence of protocols rather than simply benefit stakers.

Excellent! I will vote for sure.

Want to give a quick update because it’s not a straight forward integration:

Once live all new ANC stakes will only be able to stake through veANC locking. All previous ANC stakers will keep getting rearwards but have no voting power until they unstake whereby they will only get rewards and voting power if they veANC lock. Going forward this will be the only way to lock your tokens going forward and get rewards.

So eventually this will move to a model where all staking rewards and voting power will be based on veANC and voting.

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Correct the gauges are determined by veANC voters. This will determine how much Luna will be swapped for each LSD on the backend by Anchor protocol. So for example if the Luna gauges are 60/40 stader/ lido the idea is that anchor will swap the Luna 60 40 for Lunax and stluna respectively.

It should go live right after the vote executes. It will be more meaningful when the v2.1 baskets are live.

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No, it goes back to the standard reward mechanism that eventually will migrate 100% to being based on veANC. However since you can’t force people to unlock from their current staffing m staking there will still be carry over from original ANC stakers that don’t unstake into the veANC model who still will receive rewards as well.

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Thank you for updating.

  1. Is receiving 50% of the staking rate when voting is an additional benefit?

  2. Existing stakers do not have voting rights until unstaking, and do they receive staking interest as before?

  3. If I lock up with veANC, will voting power and staking interest be boosted at the same time?

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I still don’t quite understand, isn’t the amount of LUNA being exchanged only if the protocol holds LUNA or ETH?

In order to lend LUNA or ETH to users, the protocol must own the asset, how can this be explained?

Does this mean that when v2.1 goes live, the bLUNA in the anchor will change proportionally?

In the case of ETH, does it mean that the bETH you currently hold fluctuates according to the gauge?

I just want to know where to get the LUNA for exchange by gauge?

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Exactly to all 3 points

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I think you’re misunderstanding the baskets. The protocol is not lending anything but UST. In the new basket model users will be able to borrow against Luna, ETH etc in a one-click fashion. The protocol will then use the gauges that are voted on by veANC to determine on the back end how much of that Luna is swapped in to the proportional LSDs.

bLUNA naturally be slowly phased out as well as bETH in favor of stETH etc.

This is just a high level summary overview and will be a more detailed post coming up in the next few weeks


Thank you for your answer.

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When will live after the poll?


Target release date on Wednesday this week!

If borrowers deposit un staked Luna. And anchor stakes it in the background. Does that mean borrowers will get bLuna back? Or will they have to wait the 21 day unstaking period?

Sorry I don’t understand it. I am just a simple investor who wants the price of Anc to go up, or, as I have quite a lot, be able to use it as collateral to borrow against. I cannot see the benefits of voting. Where is the benefit for someone like me?

See the original post


I think this is a step in the right direction. Governance tokens aren’t being used sufficiently in todays market for their intended purpose: governance. The only way the value of a governance token should increase is by making it valuable to participate in governance. The average investor can still stake and sit on the sidelines and watch the big money lock up a lot of veANC to increase their share of the ecosystem. Not much benefit for the average ANC holder just looking for price appreciation. However, the price is likely to appreciate anyway by heavy whale (LSD protocols) participation. Common investor can catch crumbs this way while big money businesses jockey for market share. Isn’t this how capitalism works anyway? Anchor is playing the long game looking to establish itself for years to come as the most sustainable earning and borrowing protocol in all of DeFi. The objective was clearly not to pump the token right away. I like it! Even as a small investor I like it! I see LSDs offering incentives to stake ANC within their own protocols rewarding the average user and sharing the wealth. ANC price will continue to bleed until short sighted “investors” are mostly out. Easy to be patient on results with brilliant changes like this.