Got a product idea and would love to get the community’s feedback.
Context & opportunity
At the moment, Anchor gives 20% returns to UST stablecoin depositors, which is fantastic, from what I understand better than any other stablecoin savings product out there.
The thing is, most dollar stablecoin holders use USDT, USDC or DAI, all Ethereum-based. These holders are used to these coins, they trust them and it would be hard to persuade them to jump ship to the Terra ecosystem.
The total mkt cap of these three ERC20 stablecoins is about $55B, 30x+ larger than UST’s $1.7B. If we could find a way to bring some of that $55B into Anchor, it would be incredible for the protocol and ANC & Luna holders.
An incredibly simple to use app with a nice UI/UX that:
- Takes deposits of ERC20 stablecoins a’la BlockFi
- Converts the ERC20 stablecoin into UST behind the scenes
- Deposits the converted UST into Anchor earning 20% APY
- Allows withdrawals any time in the same ERC20 stablecoin
The value proposition for USDT/USDC/DAI holders is that they can make ~20% interest without having to wrap their heads around the Terra/Luna/UST/Anchor ecosystem.
The value prop for Luna and Anchor stakeholders is the potential to bring demand for billions of UST, and billions in deposits into Anchor, immensely growing the value of the product.
Question marks in my head
How to think about insurance? While probably necessary for mainstream adoption, could it be possible to release a v0.1 without? This would de-complicate a proof of concept by a lot.
What is a reasonable business model that covers the costs, including ERC20 <> Terra interactions, team compensation and other admin/legal expenses? A starting idea is to maybe offer 18% savings interest and keep the rest (20% sounds sexier though, wondering if there is any way to make that viable). Anyway, the concept comes first. If there is sufficient interest and the proposal seems solid, happy to model the financials further. Not sure yet how quickly an MVP can be launched and whether funding would be necessary.
Please share your thoughts and whether you:
- see any holes in my reasoning
- see ways the idea could be improved
- are aware of any competitive alternative solutions
Last but not least, I’m also a developer, got a decent amount of experience building mobile and web apps and I’ve been running a small software agency in London, UK. If there is a good amount of interest among the community, it might be possible for me to lead the project & development, particularly the UI/UX and frontend layers and the business side. Might need some consultation regarding how to engineer the relevant blockchain integrations.