Show bAsset APY on Bond>Mint screen

Users need to know how much rewards they get from holding bAssets. Although the stability of 20% APY via Earn is very attractive to many, some users may wish to opt for alternative strategies, which may entail holding bAssets for the rewards. Planning such a strategy becomes difficult if users don’t know how much those rewards will be. (And since Provided bAsset staking returns help fund the Earn APY, I suspect that the true staking returns for each bAsset can reach higher than this 20%.)

Therefore, I propose that bAsset reward APY be displayed on the Bond > Mint screen.

Displaying such a figure will increase demand for bLUNA, as it becomes more apparent that holding bLUNA yields rewards (something I didn’t learn until after I had already starting interacting with Anchor). It also increases transparency, and with that more trust. All this translates to more engagement for Anchor Protocol.

I know that tokenized staked assets may be merely a necessity for the design of the protocol, but the idea in and of itself is a beautiful concept that has much utility.
I bet that most users looking to delegate their tokens for staking don’t bother researching much into whether the validator they may choose is a good one or not; they just want high return and low fees. In addition, choosing just one validator risks loss in case that one validator loses uptime or gets slashed. On the other hand, a pool of validators with shared staking rewards and shared slashing fees offers better protection from any single validator’s mistake. As well, there’s no lock up period with bAssets. For these reasons (safety and convenience), holding bAssets becomes an attractive alternative to traditional delegated staking.

Let users see exactly how much staking returns are rewarded when holding bAssets so they can better plan and further demand bAssets. I could see Anchor’s bAssets becoming the most popular form of exposure to staking rewards.

With further demand for bAssets, LUNAtics holding bAssets (for the rewards, but don’t know where bAssets come from) may decide to research and learn about Anchor. And there’s the convenience of already having bAssets that some users may decide to borrow UST via Anchor simply because they already have the bAssets pre-minted.

It’s low effort, high reward, and an obvious decision in my opinion.

I hope the problem, proposed solution, and potential benefits are clear. Please let me know if I can offer more clarity.

Thank you.

3 Likes

I agree on the need for this. @kevinp @EJ_Lee what are your thoughts on having this added to the WebApp?

I was just coming to the forum to suggest this, but would add that the APY should also be presented on the general bASSET page (not only under each bAsset’s dedicated mint/burn/convert pages)