Proposed Modifications to veANC tokenomics

[atebites]

Hello,

This is a short summary of the current leading proposal on forums for improving Anchor tokenomics and boosting borrower demand. This also includes other strongly supported community ideas that would help the proposal gain unanimous community support:

First the OP can be found here, please give it a read: [Proposal] veANC: Evolving Anchor Tokenomics

Some great analysis as to possible issues with the proposal are here:

[Proposal] veANC: Evolving Anchor Tokenomics

Just my two cents, but I don’t think this is the best direction for ANC tokenomics. There is a very good thread here that succinctly highlights the cons of veTokenomics. Curve veTokenomics has played out very well due to three main reasons: Factor #1: Lots of motivated players: Lots of different stablecoin projects fighting to incentivise their stablecoin pools on Curve (Frax, Mim, UST to name a few) Factor #2: Deep liquidity for stablecoin pairs is very fundamental to the utility of stablec…

Next some great community ideas that can be implemented and run along with veANC here:

[Proposal] Borrower Rewards Staking for +10% borrowing APR

This is my take on the Anchor v3 proposal and how we can improve borrower yield (thus driving borrower demand) and reducing emissions. I will post other forum links relating to this later. Borrower incentives are often dumped right away to counterbalance the interest earned, this is how the realized 0% borrowing rate is created. However this creates persistent sell pressure on the token requiring frequent buybacks to maintain price stability. My proposal both enables enhanced positive interest…

Time-locked staking aUST for extra yield

There is a proposal already up to enable staked aUST (saUST) [Proposal] Staked aUST The basic premise of that proposal is that saUST gives higher yield than regular aUST, while giving up aUST composability - so this would mitigate some of the degenbox strategies. I would like to discuss a variant of this, where saUST can be time-locked for extended periods (probably 6/12/18 months as possibilities). This would solve two issues - firstly we would pay out considerably less on the Earn side over…

My suggestions to the OP @tetris @Pong @atari is, following @davidkohcw feedback, to address anchor token emissions runway,

Staked aust can require a minimum veANC requirement to meet the premium yield.

In additions we can extend the token emissions runway with the 5x/10x borrowers rewards staking.

These two strategies solve all 3 negative factors David has risen regarding the tokenomics model and will gather large support from the community from what I can tell. We will poll it on this topic and discuss.

in addition we should redirect the airdrops to borrowers pool should veANC pass to further extend runway: Anchor Combined Prop

Should veANC tokenomics be modified to integrate the two community ideas for giving anchor depositors a reason to hold anchor and extending the borrowers emissions runway?

• Yes, both should be integrated.
• Yes, only the saUST
• Yes, only the staked borrowers rewards
• No, poll veANC as the OP had planned.