UST to ANC Deposit Ratio with optional insurance coverage payable in ANC

The suggestions presented below are about:

  • Keeping earn interest yield as it is
  • Keeping Anchor easy to use without complicating the borrowing part

While offering an idea to:

  • add a source of incomes to the protocol
  • reduce stress on the yield reserve
  • improving the ANC value appreciation to encourage more borrowing
  • offering an optional insurance coverage in anchor, payable in ANC and linked to risk harbor (this only could be discussed separately in another thread )


  • Limiting the maximum amount that can be deposited in earn to a ratio of anc deposited. For example, ratio could be 1 anc to 1000 ust. No limit to amount deposited. Keep the same yield system.

  • ANC deposited are not the same as ANC staked in the governance. They are a frozen deposit that Anchor uses as asset like bEth or bLuna to generate incomes for protocol.

  • ANC deposited are not lost incomes as they appreciate with time and the user can withdraw deposit as long as ratio deposited in earn is below the anc to ust defined.

  • ANC appreciation support the reward system for the borrowers who would consider to keep a token that could be appreciating faster than 20% per year.

  • In the same window where the initial ANC deposit is managed, a check box to insure earn deposit using risk harbor could be offered. Checking the box increase the amount of ANC required to be deposited. Users won’t have to go through all the different insurance link and will have a solution that is simple to use and give him a better peace of mind using Anchor.

Okay, I dont know all the programming restrictions that it could occurs. In the end no percentage of yield neither on the borrower or on the earner changes. The process to start compounding interest on a deposit account should only be set active after initial ANC deposit is done to avoid doing request every second. How to make sure it compounding doesn’t go above the max without doing request every second? Again, I don’t know the technologic limitation but finding a solution might be possible.

Please share your thoughts.