I’ve read the docs and studied the code, i’m also quite familiar with fixed income markets and the whole Luna eco-system. Just don’t see the point of denying that the current Anchor rate is dependent on borrowing demand. Without attracting a proportional amount of borrowers, the Anchor rate (in its current form) wouldn’t be sustainable.
The suggestion is just a much cleaner, easier to understand way of value producers doing something similar to this proposal from GET. I think it would be revolutionary.
Exactly, the anchor rate is dependent on enough borrowers, when the borrower’s incentives dry out it’ll be difficult for the protocol to keep yielding 20% to depositors, especially in bear market times. I hope someone comes out with a proposal to have the terra protocol directly subsidize the interest rate for depositors with new UST in bear market times, the newly printed UST debt could then be repurchased by the protocol when market conditions get better and when it has a surplus so the liability isn’t held by luna holders long term. At the same time temporary incentives given in new Luna in the borrow side can be given to converge both sides appropriately, when both sides are at equilibrium the incentives could stop again.
You can check experiments like The Coming Era of Tokenized Essays
Indeed a great idea to increase use case. I recently wa brainstorming a way to finance charitable work using blockchain tech, and Do’s idea is indeed also workable in this area. A group of donors can contribute to a pool of fund using anchor, and the charity can draw from the fund by having unlock milestones set in the smart contract. I can see multiple use case for this framework, somebody pls do it!
Will a prototype pylon protocol be available on the testnet in time for the DeFi Connected Hackathon?
Hi Do, something similar to https://www.kiva.org/ ?
Thinking similar as at first brought to mind patreon.com . Similar and both have so many uses beyond
Ya agree, and somewhat a separate topic and if anyone comes up with a better idea/method, can be proposed and voted on. Liquidations may lead to cascades during market downs, as with recent btc 10 bil leveraged positions liquidated (I figure some bLuna borrowers liquidated too, separately impressed with comparative ust stability to other stables). Another post here in governance I think mentions an Alchemix style loan program… mayhaps that’s good maybe not, just an example.
Would you be interested in collaborating on this project? I am going to start working on it for the DeFi Connected hackathon.