# Why $anc will hit $0.1 and how it will destroy anchor protocol
**URL:** https://forum.anchorprotocol.com/t/why-anc-will-hit-0-1-and-how-it-will-destroy-anchor-protocol/3967
**Category:** Mechanism
**Created:** [March 25, 2022, 2:20pm UTC](https://forum.anchorprotocol.com/t/why-anc-will-hit-0-1-and-how-it-will-destroy-anchor-protocol/3967 "2022-03-25T14:20:05Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@Andrewhou](https://forum.anchorprotocol.com/u/Andrewhou)
#### Post date: [March 25, 2022, 2:20pm UTC](https://forum.anchorprotocol.com/t/why-anc-will-hit-0-1-and-how-it-will-destroy-anchor-protocol/3967/1 "2022-03-25T14:20:05Z")
I am sure everyone knows why the yield reserve is depleting
Because there are 11m total deposits while only 2.8m total borrow.
Why?
Because $anc is continuely dropping even when other coins rally.
Why?
Because Anc-Ust staking reward is only 17.67% on anchor. So any reasonable person will sold $anc for $ust and deposit back to anchor. So $anc price is continuely dropping.
lower $anc price means even less borrow amounts, because borrowing rewards are paid partly by $anc.
It’s a dead spiral.
Simple logic above.
I dont know why people are ignoring the elephant in the room.
VeANC may not be the best way to boost anchor ecosystem, but it is a feasible way to make anchor self-sustained which is verified by many Defi apps.
Semi-dynamic APY ? Come on！
I am so disapointed.
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### Author:  [@JonathanSmith](https://forum.anchorprotocol.com/u/JonathanSmith)
#### Post date: [March 27, 2022, 8:52am UTC](https://forum.anchorprotocol.com/t/why-anc-will-hit-0-1-and-how-it-will-destroy-anchor-protocol/3967/2 "2022-03-27T08:52:00Z")
V2 will solve most of these, V2 won’t need $ANC rewards, so all ANC buybacks will go stakers.