# Reinventing Anchor - idea for the future of Stablecoins (AST)

**URL:** <https://forum.anchorprotocol.com/t/reinventing-anchor-idea-for-the-future-of-stablecoins-ast/5093>\
**Category:** General\
**Created:** [May 14, 2022, 6:16am UTC](https://forum.anchorprotocol.com/t/reinventing-anchor-idea-for-the-future-of-stablecoins-ast/5093 "2022-05-14T06:16:18Z")\
**Posts on this page:** 1\
**Page:** 1

<div class="post-metadata">

**Author:** ![ZedKingsley](https://avatars.discourse-cdn.com/v4/letter/z/7c8e57/32.png) [@ZedKingsley](https://forum.anchorprotocol.com/u/ZedKingsley)\
**Post date:** [May 14, 2022, 6:16am UTC](https://forum.anchorprotocol.com/t/reinventing-anchor-idea-for-the-future-of-stablecoins-ast/5093/1 "2022-05-14T06:16:18Z")

</div>

I’m underwhelmed by the idea that MKR/DAI is the best stablecoin that crypto can come up with. Anchor protocol is best positioned for the safest non-ponzi stablecoin of the future. Here’s why:

Fundamentally, bAssets are incredible – pooling the staking yield of all the best chains, it becomes a true defacto anchor yield of all crypto staked coins.

Why not use bAsset yields collateralize a stablecoin reserve, and by lending bETH (or something), you are allowed to borrow pro rata against that reserve (50% overcollateralized). Hold bETH, earn fully collateralized AnchorStable (AST), at probably ~3% or so?

EXAMPLE: Jimmy holds 100 bETH. Jane holds 1,000 bAVAX. After one year, say they yielded ~4 ETH ($8k) and 50 AVAX ($2k). So Jimmy has a claim to 80% of the pool, and Jane to 20%. This means Jimmy can borrow up to ~$4,000 AST against the mixed bag pool of ETH and AVAX, and Jane can borrow up to $1k AST. It’s over collateralized, just like DAI, but against a basket of cryptos best staking coins. No death spirals, no over indexing. Distributed risk.

IT’s the best of DAI meets the best of ANC. Thoughts?