Yield reserve is dropping day by day?

General
1

Is this something that we should be concerning about? or am i just fuss about it? . Thanks for your answer

1 Like
2

Here are the facts:

  1. There is just over 1 month left on the yield reserve at the current deficit of $1.3M per day.
  2. The Abracadabra degenbox is extracting approximately $722k of interest per day.
  3. Yields are currently tracking at 11.5% and on a clear downwards trajectory.
  4. We are in a bear market.
  5. Cross chain borrowing is likely to take a while to roll out and produce an impact.

Reference: Grafana

If there are no changes and we run out of reserves then we may see a sudden drop of yields from 19.5% down to a possible 8%-12%.

With $6 billion on deposit, what percentage of those funds are going to immediately exit Anchor and out of UST? At what figure is that going to put downside pressure on the UST peg and set off a panic? A what price level are we going to see a liquidation cascade in Abracadabra?

I am concerned enough about these risks to have moved all of my funds out until we get more clarity on the situation.

I am interested to hear how others are seeing this right now.

6 Likes
3

I share the same concerns. I don’t think we would be in this situation if the auditing on the bSOL and bATOM contracts wasn’t taking so long. The backlog at auditing firms really shouldn’t be what kills this protocol. I think it would be worth TFL’s funds to infuse ANC with more capital until some of the audits are complete.

2 Likes
4

There are 4.01B UST not lend out, this should be put into a UST USDT liquidity pool for income.

3 Likes
5

In the last bear market I remember they (TFL) added to the reserve. I don’t know what ll happen this time, does anyone have any thoughts on this?

2 Likes
6

Currently your cost for borrowing UST is 12.2%+6.6%,. Cost less than earn 19.47%.

1 Like
7

Sorry but whit this imballance it would only be a drop in the sea. With another 70 M€ you would add about a month at this (accelarated) decline. We need to find a new balance with the outcome that reduced yields will scare away most of the funds deposited. Which is exactly what this protocol needs…

2 Likes
8

We only need a month or two until bSOL and bATOM contracts are ready I think

1 Like
9

This could generate significant $$$. APY on Astroport is like 30-100% for UST-LUNA so that would cover us for a long time. Can we push this idea some more?

1 Like