Target businesses for Anchor API

I think all long term holders understand that driving UST adoption is the single most important thing. The community activity on twitter is strong and I think if some of that energy was channeled towards lobbying businesses that could easily integrate Anchor API and start offering their clients ~20% yield, then UST adoption could go stratospheric.

I’m sure there are other ways we can lobby in addition to twitter. I.E, AMAs, linkedin with founders etc…I wanted to start this thread as a way to brainstorm targets and strategies for lobbying so the community can help drive adoption of Anchor and increase UST demand.


Maybe we could work together to construct a proforma tweet that will have maximum impact? These are just some ideas but would be great to hear other people’s thoughts.

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Since Luna is burned to acquire UST, I don’t actually know how much UST can potentially be minted and if it is enough for a mass adoption cycle. Two weeks ago 20M LUNA was burned to mint UST, bringing the total burned LUNA to 50M. That’s already 5% of the total LUNA supply.

To drive adoption, either LUNA price needs to skyrocket or new ways to mint UST created.
I imagine the devs have some great ideas about this?

Luna price and Luna # burned is an exponential relationship.

Remember the reduced amount of Luna means that each Luna receives a larger and larger proportion of staking rewards.

Here’s an illustrative example:

$100 network fees / 100 Luna supply = Each Luna receives $1 of staking rewards
If all Luna but 1 is burned…
Same $100 network fees / 1 Luna supply = Last Luna receives all $100 of staking rewards

The last Luna would be worth billions of dollars. Imagine that.

But what when the bear market hits, the luna price falls and the demand for UST goes up?
In such a case, Terra would have to burn more and more LUNA for increasingly lower prices to keep up with the demand for UST.

I respectfully disagree with your first statement. Other folks with more knowledge please let me know if I’m wrong.

Demand for UST = Demand for Luna

Supply and demand factors may unhinge temporary in a ‘panic selling’ environment but UST and Luna are fundamentally linked.

I refuse to assume LUNA will never enter a bear market where the demand for UST outshines the demand for LUNA. Just trying to figure out different scenarios and how that might play out.

I think it’s important to remember that the cashflows paid to Luna holders that provide it’s fundamental value are not correlated to the crypto market since much of it is generated through real world transactions in Korea and Mongolia (I hear soon Vietnam as well).

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can we please keep this topic to anchor business initiatives.

I know the team over at Zengo Wallet, who already support Luna and UST have this on their list of protocols to add to the app, Hopefully others are as well. I don’t think Gemini or blockfi will gravitate towards Anchor because they have their own block-chains centered around er20 and pay rewards in their own chain coins. It would be counter intuitive really. It’s better to look at and target noncustodial wallet with decent traction like Trustwallet, Dhama etc.

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ZenDog, it is true that the demand for UST = demand for Luna, but the supply side of Luna is elastic. So Luna can still loose value per token while have more demand at the same time. Elastic supply is still experimental so we don’t actually know what will happen once the bear market hits.

But let’s get back to the main point of this post, targeting businesses, because this is how I actually ended up here on this forum. Let’s say I have a license to offer financial services to all EU citizens, including taking deposits from the customers. What I want to do is offer a simple savings account service where customers deposit their money in their own currency to accrue interest. The API is not the issue here, but rather the lack of several important components. For example, being allowed to only save in UST rather than other currencies increase risk and reduce the rate as you’ll need to hedge your currency risk. It would be great if we could save in euros/EU(R)T. Another is the lack of insurance services, especially more complex ones (being worked on by other projects, but still very experimental and cover mainly contract risk). Traditional insurance services can be used here, but are extremely expensive due to the nature of the crypto space. But the biggest issue I see with Anchor is the 20% interest rate because it is not clear how exactly this could be maintained. Staking does not provide enough return to cover the interest paid to savers, and once the ANC rewards are down no one in their right mind will borrow at 30%(!!!) rate for an OVERCOLLATERALIZED loan (this is obviously insane compared to regular financial services).

The points mentioned above are not as important for “inward” looking approach where we target current crypto users/businesses. But to keep the “outwards” focus of the Terra ecosystem, there are some real obstacles that need to be tackled. Insurance services is the way forward the way I see it and also a discussion about the interest rate (20% cannot be sustained and I have not seen any real attempt to address this or maybe I have just not been looking hard enough). Just out of curiosity, is there a way to see where the 20% currently being paid out is coming from? If I got 100UST in interest last month, could we tell exactly where these 100 came from (e.g. 70 from staking, 30 from interest charged to borrowers)?


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This thread inspired me to create a LinkedIn Group as a means of creating awareness among businesses. If we can create content / discussions of educational value there, ultimately we can run ad campaigns on LinkedIn targeting business owners and financial officers. If we create value, perhaps Terra would be interested in underwriting the media spend as an investment in the platform.

Things you can do to help:

  • Join group (obviously)
  • Tutorials or tips for businesses
  • Invite those in your network who may stand to gain
  • Let me know if there are other ways you’d like to help - we’re all time constrained, so every bit helps
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