# Raise bLUNA LTV to 80% **URL:** \ **Category:** General\ **Created:** [January 8, 2022, 2:55pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094 "2022-01-08T14:55:36Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![mariano247](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/mariano247/32/418_2.png) [@mariano247](https://forum.anchorprotocol.com/u/mariano247)\ **Post date:** [January 28, 2022, 6:56pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/41 "2022-01-28T18:56:37Z")
That doesn’t improve anything. It just discourages borrowing, which by the way is the exact opposite of what the protocol is trying to achieve, which is incentivizing borrowing by making it, easier, safer and more capital efficient… ---
**Author:** ![cryptograk](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/cryptograk/32/377_2.png) [@cryptograk](https://forum.anchorprotocol.com/u/cryptograk)\ **Post date:** [January 28, 2022, 7:03pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/42 "2022-01-28T19:03:14Z")
Fair point. But if you are going to be rewarded for borrowing with ANC tokens, then something that helps the token price would encourage borrowing. If I look at the borrow rate at -2%, but the ANC price is constantly falling, then that rate is going to continue to get worse, and the borrow case doesn’t look as strong with ROI. I also know these rewards are not forever, and the protocol does need to stand without them, but I don’t know that we are there yet. ---
**Author:** ![cryptograk](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/cryptograk/32/377_2.png) [@cryptograk](https://forum.anchorprotocol.com/u/cryptograk)\ **Post date:** [January 28, 2022, 7:04pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/43 "2022-01-28T19:04:23Z")
The good news is that Kuji Orca seems to help this in reducing the discount levels that are actually hit. When they incorporate AUST, I think you will have a lot more people willing to liquidate at lower levels and it should never climb the ladder that high. ---
**Author:** ![mariano247](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/mariano247/32/418_2.png) [@mariano247](https://forum.anchorprotocol.com/u/mariano247)\ **Post date:** [January 28, 2022, 7:20pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/44 "2022-01-28T19:20:31Z")
> [@cryptograk](#): > > Fair point. But if you are going to be rewarded for borrowing with ANC tokens, then something that helps the token price would encourage borrowing. Not at all actually. This is something I have criticized quite a lot actually. [Proposal to decrease borrow APRs](http://forum.anchorprotocol.com/t/proposal-decrease-borrow-aprs-to-4-6/2195). Most borrowers dont care about those ANC rewards. All they care about is dumping them to be able to access cheap borrowing. The borrow APR should be lowered to 3-6% which is what most protocols operate at and those ANC rewards should be given in drops, like the icing on a cake maybe financing 1-2% of the entire borrow APR. In contrast ANC tokens are currently being used to finance an unsustainable and absurdly high borrow APR which actually decentivizes borrowing. I think there are some ways of giving ANC utility. But the way you are proposing just doesn’t cut it IMO ---
**Author:** ![bitn8](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/bitn8/32/61_2.png) [@bitn8](https://forum.anchorprotocol.com/u/bitn8)\ **Post date:** [January 28, 2022, 7:59pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/45 "2022-01-28T19:59:51Z")
This is a simple webapp UI change so that people don’t degen ape in and get liquidated right away. We shall change this to at least plus 70%. ---
**Author:** ![cryptograk](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/cryptograk/32/377_2.png) [@cryptograk](https://forum.anchorprotocol.com/u/cryptograk)\ **Post date:** [January 28, 2022, 9:52pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/46 "2022-01-28T21:52:53Z")
Makes sense. Thanks. ---
**Author:** ![atebites](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@atebites](https://forum.anchorprotocol.com/u/atebites)\ **Post date:** [January 28, 2022, 10:08pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/47 "2022-01-28T22:08:29Z")
Sounds great, Wasn’t entirely sure if we were keeping it at 50% or raising it but this is even better. This and v2 is going to make borrowing much more pleasant on protocol. I assume we’ll work out the ANC rewards and bANC once v2 is launched. ---
**Author:** ![bitn8](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/bitn8/32/61_2.png) [@bitn8](https://forum.anchorprotocol.com/u/bitn8)\ **Post date:** [January 28, 2022, 11:32pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/48 "2022-01-28T23:32:21Z")
> [@atebites](#): > > I assume we’ll work out the ANC rewards and bANC once v2 is launched. That is my sincere hope ---
**Author:** ![stevedefazio](https://avatars.discourse-cdn.com/v4/letter/s/d9b06d/32.png) [@stevedefazio](https://forum.anchorprotocol.com/u/stevedefazio)\ **Post date:** [January 29, 2022, 1:39am UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/49 "2022-01-29T01:39:20Z")
so back then, Kujira wasn’t a thing. Now we can log into Orca and see that there are tons of liquidators making bids that don’t even have a chance. I think liquidation illiquidity is a problem that Kujira has alleviated. ---
**Author:** ![atebites](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@atebites](https://forum.anchorprotocol.com/u/atebites)\ **Post date:** [January 29, 2022, 2:02am UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/50 "2022-01-29T02:02:51Z")
almost halfway there guys keep up the votes. Get your friends to buy some cheap anchor and bluna and vote for more dollars now! ---
**Author:** ![rem](https://avatars.discourse-cdn.com/v4/letter/r/5fc32e/32.png) [@rem](https://forum.anchorprotocol.com/u/rem)\ **Post date:** [January 29, 2022, 2:10am UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/51 "2022-01-29T02:10:12Z")
I think we should only increase the LTV when the protocol collateral level is high and market volatility is lower. (Similar to what liquidty doing) Increase LTV in a market like this would increase even more liquidations. Or we can have a 80% LTV pool, but with higher interest rate ( similar to abracadabra.money) to make up the risk for the protocol and increase the revenue. ---
**Author:** ![atebites](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@atebites](https://forum.anchorprotocol.com/u/atebites)\ **Post date:** [January 29, 2022, 3:43am UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/52 "2022-01-29T03:43:02Z")
All the data gathered supports higher LTV on bLUNA already. We don’t need to make any adjustments. ---
**Author:** ![GarkoCrypto](https://avatars.discourse-cdn.com/v4/letter/g/ecccb3/32.png) [@GarkoCrypto](https://forum.anchorprotocol.com/u/GarkoCrypto)\ **Post date:** [January 29, 2022, 2:37pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/53 "2022-01-29T14:37:31Z")
yes that is what i want too ---
**Author:** ![grymjack](https://avatars.discourse-cdn.com/v4/letter/g/ecccb3/32.png) [@grymjack](https://forum.anchorprotocol.com/u/grymjack)\ **Post date:** [January 29, 2022, 4:16pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/54 "2022-01-29T16:16:46Z")
What would be some of your ideas to improve the utility of the ANC token outside of voting and selling for UST? Not sure if tiers of LTV is good answer, maybe tiers of Earn%? Honestly, am curious as you seem to have a high level of knowledge about the space. ---
**Author:** ![grymjack](https://avatars.discourse-cdn.com/v4/letter/g/ecccb3/32.png) [@grymjack](https://forum.anchorprotocol.com/u/grymjack)\ **Post date:** [January 29, 2022, 4:20pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/55 "2022-01-29T16:20:09Z")
Sorry if this is a noob question, but I assume this means the liquidation threshold is also changing? ---
**Author:** ![atebites](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@atebites](https://forum.anchorprotocol.com/u/atebites)\ **Post date:** [January 29, 2022, 4:21pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/56 "2022-01-29T16:21:27Z")
bANC possible after v2. ---
**Author:** ![R0ckstar](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/r0ckstar/32/548_2.png) [@R0ckstar](https://forum.anchorprotocol.com/u/R0ckstar)\ **Post date:** [January 29, 2022, 5:12pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/57 "2022-01-29T17:12:57Z")
Totally agree on this! Should have a very positive impact on Luna. ---
**Author:** ![ColonelSanders](https://avatars.discourse-cdn.com/v4/letter/c/e480ec/32.png) [@ColonelSanders](https://forum.anchorprotocol.com/u/ColonelSanders)\ **Post date:** [January 30, 2022, 7:31am UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/58 "2022-01-30T07:31:32Z")
The amount of bids in Kujira is very low relative to the size of the collateral deposited into Anchor. I don’t expect that number to rise. No one should want to use Kujira. When Anchor itself or another project that doesn’t involve Kujira can run the liquidations (and remove the crazy withdrawal fees), Anchor can begin to consider increasing LTV liquidation thresholds. Without that change, Anchor leaves itself exposed to some pretty catastrophic risk by having LTV too high. ---
**Author:** ![atebites](https://avatars.discourse-cdn.com/v4/letter/a/e0b2c6/32.png) [@atebites](https://forum.anchorprotocol.com/u/atebites)\ **Post date:** [January 30, 2022, 7:51am UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/59 "2022-01-30T07:51:55Z")
Anchor already has multiple liquidators and bluna-luna ast pool is healthy enough for 80%. I’m not sure what your concern is. ---
**Author:** ![mariano247](https://sea2.discourse-cdn.com/flex016/user_avatar/forum.anchorprotocol.com/mariano247/32/418_2.png) [@mariano247](https://forum.anchorprotocol.com/u/mariano247)\ **Post date:** [January 30, 2022, 2:27pm UTC](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094/60 "2022-01-30T14:27:10Z")
> [@grymjack](#): > > you seem to have a high level of knowledge about the space. Haha, thats really flattering but I wouldnt consider myself “knowledgable” There have been quite a few interesting proposals in this forum. The anchor v3 proposal seems to have a very interesting proposition towards increasing anc utility. But I havent delved much into it. The tricky thing with increasing ANC utility is that it shouldn’t be applied in a way that involves any sort of tax or additional inconvenience to the end user. In defi it is too easy to fork a proyect and provide better services. It has to translate into real value provided to the end user rather that barriers. One possible way to do so would be to so could be requiring ANC to boost deposit returns. But it would have to be a small percentage of the entire portfolio so as to not become intrusive or disincentivize people from using it. [Previous page](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094.md?page=2) [Next page](https://forum.anchorprotocol.com/t/raise-bluna-ltv-to-80/2094.md?page=4)