Support for alternative stablecoins in Anchor

Hi All,

We wanted to gauge sentiment on an idea for a proposal to the Anchor Community -
We propose adding support for ERC20 stablecoins such as Maker DAI.

Adding support for more stables will help new users bridge into the Terra ecosystem and diversify deposit assets.

As such, we’d like to signal support from the Anchor community in consideration of DAI as a deposit asset in Anchor. Further, we are simultaneously proposing that Maker create a peg stability module (PSM) for UST to improve access to and arbitrage of the stablecoin in non-native markets. We can link that proposal once it is live.

To limit risk to the utilization ratio, there could be a limit on Terra-DAI deposits up to a certain max cap.

Bumping this up - we have a real shot at incorporating UST into the Maker PSM, which will provide liquidity and accessibility for traders and arbitrageurs. Funding a PSM in the Maker ecosystem would accelerate UST as the default algo stablecoin reserve asset.

I would strongly oppose accepting DAI on Anchor. DAI holders who want to use Anchor can use Orion on Ethereum or swap DAI for UST on Curve and bridge their UST on Ethereum to native Terra UST to deposit into Anchor.


How about the PSM component, thoughts? Supporting DAI via Orion could suffice in the meantime.

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From my perspective it’s better to rely on Orion and other third party protocols for these options. Anchor needs to spend its resources on driving more borrowing demand, building better value capture for ANC stakers, and refining a algo for yield. Without these strategic focuses paying yield to other stablecoins would hinder these key strategic moves at this time.

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I agree with bitn8, I would strongly oppose native acceptance of DAI deposits onto Anchor.

That being said, accepting non-UST Terra stablecoins (EUT, GBT, AUT, KRT,…) is a desirable feature that would allow users to have their savings pegged to their local currencies, while maintaining/adding pressure onto LUNA’s supply. Fortunately, that seems to be coming in a couple of months :slight_smile:

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It seems the best way to accomplish this kind of thing would be to just build it in at app level based on consensus of the community.

This was touched upon in the second AMA. Seems like other stablecoins currently lack liquidity for such an integration but we might see some useful developments with Vertex and Mars.

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