Two questions trying to understand ANC buybacks

General
1

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.

Screenshot 2021-07-13 023942
Screenshot 2021-07-13 0239421879×951 216 KB

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.
  • 0% Reserve Factor. I am unsure what this one would be if it were non-zero. [1] 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. [2] 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.

2

Essentially 10% (ANC Purchase Factor) of whatever goes to the yield reserve is used to buyback ANC.

Reserve Factor is actually a deprecated parameter - I should get this removed from the docs.

As for the excess yield → all excess yield is sent to the yield reserve, 10% (ANC Purchase Factor) of which is used to buyback ANC.

3

Thanks for the reply. ANC Purchase Factor thus should read that it is bAssets, liquidation, and excess yield. I will try to make those changes on the docs for the next me trying to understand it.

All none-excess yield goes into the Money Market wallet I assume.