What would the earn rate be without ANC borrower rewards?

What lending/earn interest rate would be sustainable if Anchor didn’t incentivize borrowing with rewards?

Luna’s APY is current 17% with 9.5% of that coming from ANC and MIR airdrops.

Would it be fair to assume with no borrower rewards and no ANC/MIR airdrops, the interest rate would be in the 10% range (the 7.85% Luna staking APY + approx 5% borrower rate - a margin for ANC staking and interest reserve)?

Any thoughts would be appreciated!

20% , esp with other staking collateral being added.

I think the interest rate for the borrower loans should be listed as a daily rate. like 0.05% daily interest.

That will get you to the same high total APY, but not the scary and confusing looking 38% APY which is more than a credit card.

I know we incentivized the loans with ANC, but I’m just stating for the general public 38% interest on loan looks scary and they aren’t necessarily going to go through and figure out how that is ok.

@40MillionMultiVac Your misunderstanding the APY. Right now Anchor is paying you to borrow through incentives, not charging. So yes it is a bit confusing how it is presented here. Maybe it could be more clear. But I am not sure the daily APY would clear that, but might also be helpful to have.

I just know that lending % as a daily, weekly, and monthly rate is all I ever see when borrowing margin. When I lend crypto I see the average APY.

The borrower is thinking short term. The lender is the only one considering a yearly APY of the loans after the incentives diminish perpetually.

If it said, 0.04% daily interest rates, and 44% APY earned a year in ANC with incentives, then I think it would work a lot better.

Makes sense. @ryanology

Seems like a nice visual modification to have. Adding to our list of WebApp improvements