YIELD RESERVE is going down really fast 1 1,5 2 mil per day.
In my opinion if you barrow from anchor then you can put all the money back in ust to get the 19.5% for example if you barrow 10k then you can put 10k in anchor.
There are to many protocols that drain the anchor yield for no reason at all.
There are lottery’s that put each day millions in anchor and just taking money from it not borrowing or not contributing to the anchor protocol. Ex: Inkprotocol, loterra, whitewhale and so many others.
I will like to have something like this to put my savings for the next 20 30 years and then living out of the yield but because there are whales putting milions in anchor just for the yield my dream is just a dream.
A ordinary working human in Europe will never be able to put more then 1 - 3k each month.
In my opinion there must be a limit on what you can deposit to get the 19.5%. YES … PUT 500UST EACH MONT FOR THE NEXT 20 YEARS.
Does anyone have any analysis on rent seeking protocols that are just plugging into Anchor to suck out the 19.5%?
Obviously Abracadabra are one of the big ones with $750M parked in there and looping it back in. Do we have a list of any others?
I believe many of the dead OHM forks / DAO’s have multi millions of UST just sat in there and I am certain this is just scratching the surface.
Any changes that target the Earn side should have these protocols firmly in the crosshairs.
Here’s a small one I found recently while randomly browsing my Discord servers, just a cool $1M per year in interest. This crapped out OHM fork (WAGMI) is by all accounts dead…
I realy think to resolve the problem is to put a limit per month how much you can deposit and only people that barrow from anchor to be allowed to deposit = how much they borrowed … the second one is to block this protocols that take advantage only of the yield and 3rd once you put a limit on deposit you need to return the money to the whales like people that hold more then 500k and let them deposit with the limit. Only then the 19.5 return will be stable if not each year it will be the same problem. One of this days there will be a domino effect and ust and terra will be 0
Definitely, there has to be a drastic change regarding the amount that can be deposited, it has to be capped. Then let’s say beyond 100k, the yield must go down, and more drastically than what has been proposed… say 14% ? if not Anchor just becomes another tool to make whales/rich people richer and that is not the initial idea of crypto, I believe. Imo, the fact that 500k can be deposited and earn the same yield as the 500, 5000, 10000 ust etc, person is insane. It shouldn’t be and can’t go on… I like to think of Anchor protocol as a wonderful and balanced tool designed to unable regular people to reach some kind of financial freedom and certainly not to become another fun tool for the rich to easily pile up more. So why not make 2% yield or less beyond 500k? That’s a strong statement!
Of course addressing “Vampire dapps” that drain the yield reserve is also a necessity, an urgent one.
I tink putting just a limit on deposits like 2 3 4 5k will fix it.
Yes if you deposited 10 years each month now you have the milion in… and getting like 8%.
I hope they will put the limit.
Keep the 19.5% just to help you build income and when you pass a limit like 100k then you get only 15% after getting to 200k getting only 10% and when are you at 500k giwing you a stable 8%.
No bank is helping you build you future and this will help ust because you will invest each mont in it and you want to keep it forever
This isn’t workable, as the dialogue around the Polychain/Arca proposal just made clear.
The only solution is a hard cut on the deposit yield to 14-15%.
Which is still a great yield.
No one is saying that is a bad idea but this will not help because the protocols and whales are still there sucking anchor protocol dry.
On March 8 at 13:47. The yield reserve was 457,258,110 ust.
Right now is 447,591,140UST.
That is 10 mil in 3 days
If not there is a simple way of resolving the issue: temporarily kicking the whales and all the protocols that are taking advantage of the 19.5%.
Implement low returns for 250k ex 15% … lower return for more then 500k ex 10%
Put big fees for taking out money ex 3 4 5 % for 50k 100k… bigger fees for withdrawing more then 100k like 8 9 10%
This way more money for the yield reserve and more money in to anchor
If in 3 days anchor gave away from the yield reserve 10 mil… then in this rate in 4 months the reserve will be 0 … so what next? Burning terra to get yield reserve? This is a never-ending thing. This is not a solution. Yes the BTC that they bought to be like a last plan
Since there’s 10B of UST sitting, most of it idly, perhaps a solution would be to limit new deposits.
Or cap new deposits.
sAVAX is coming soon, followed by ETH, bATOM as well as many other chains. Let’s see what this does for the YR before screaming the house is burning down. The injection of the YR was meant to give time for these changes to be implemented. There is also algo rate in the works as well to address sustainability.
We can reassess once we see how this all plays out.
Yes. Sadly time is running out. I think Mariano’s proposal is still one to implement ASAP. That should reduce vampiric looping without removing usability.
That and increasing borrowing is all that can be done. Obviously any caps are out of question, as anyone can create however many wallets they want. And term locks are likewise impractical, as it would remove many add-on app functionality, and make the dynamics so much more complicated (do flex deposits then get 0% or negative APY if reserve is dry, in order to meet the locked term guaranteed rates?).
According to Luigi’s site there’s exactly 116 days runway until YR runs out, even with the rising Luna price, YR are getting significantly reduced each day.
7 days ago the runway was 150 days, just for reference.
What this means, is that we need to act QUICK, start being proactive and focus on finding solutions ASAP.
Problem is, it will take a long time until we find a suitable proposal, then it will take even more time to discuss it thoroughly and find ideal parameters, then it will take a long time until the proposal is tested thoroughly and most (if not all) possible attack vectors and bugs are ironed out. I’m not a dev, but I’m sure no significant protocol change can be rushed, so I guess now’s late.
Exactly! The 116 days is at current rate of depletion. The depletion keeps accelerating, however. In reality it’s likely 2-3 months before the reserve runs out, factoring in the accelerating depletion trends.
I rather have a protocol that helps me build my retirement fund 1mil$ then living out of the returns.
But people are so greedy that they think that in 15 years they still want 19,5% returns on 1 mil $ even if they dont have 10k now.
If you know a protocol that offers more then 12% on USDT just let me know.
You think anchor will exist in 20 years?
I only joined the party couple of days ago. Im not a whale, just an average joe who thought that finally he found a goose who lays golden eggs. But it looks like whales are killing our goose.
What is the solution? And what is the plan b?