Terra-170.Dynamic Rate, Mvmt. I
-- Q170. A recent governance proposal (https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042) offers a dynamic Earn Rate -- as one solution to the problem of Anchor Protocol’s sustainability. -- Assess the following two questions: -- Based on defensible assumptions for key inputs (e.g. Anchor’s collateral blend and growth, as well as rates paid to borrowers), -- define a target range (+/- 1.5%) for the Anchor Earn rate that you think would be sustainable without regular capital infusions -- Assess the impact of debrines in “earn rate” for other protocols, e.g. Aave, Compound, on key protocol metrics -- (e.g. user growth/debrine, rate of user growth/debrine, capital deposited, etc.)