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.
- 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.