There are two points for understanding the ANC buybacks that I cannot solve from reading the docs. I want to understand exactly which revenue sources go into the buybacks.
As you can see ANC buybacks are as follows:
- 10% of bAsset rewards. This is regardless of whether the protocol is cashflow positive or negative.
- 0.1% of Liquidation Fees. Liquidation fees are 1% and 10% of that is used for buybacks so 0.1%. Also occurs regardless of cashflow status.
Reserve Factor. I am unsure what this one would be if it were non-zero.  What is it? The wording is not clear:
Reserve Factor: commission rate applied to deposit interest that is used to purchase ANC tokens
Finally, I do not see the parameter for the portion of Excess Yield used to purchase ANC. It seems to be missing from the docs.  Where is it in the docs and what value is it set to?
Deposit yields in excess of the target deposit rate is accumulated to the yield reserve, with a portion used to purchase ANC. Purchased ANC tokens are then redistributed to ANC stakers.