Introduction to lending/borrowing and Kujria

Borrowers offer assets as a collateral on Anchor when they want to put their value to work without selling them. By borrowing agains the assets they hold, they can use the loan without selling their assets.

Anchor lends UST in exchange for bLuna or bETH (and now, Avax and Atom).

Anchor allows borrowers to withdraw up to 80% of the value of the collatral if its bLuna, and 75% if it's bEth.

Liquidators ensure that suppliers of funds are not put out of business by losing capital to bad debt, and by keeping lenders solvent, liquidators ensure there's capital available to would-be borrowers. When a loan is at-risk, a liquidator may opt to liquidate the loan. They are, in effect, stepping in to pay the difference between the total value of the collateral and the total value of the required minimum percentage of the amount borrowed.

Liquidators repay the shortfall on the collateral to the lender on behalf of the borrower. Since the loan is in stablecoin UST, the liquidation is paid in UST. Once an at-risk loan is successfully liquidater, the lender (in this case Anchor) gets back the UST they loaned out, and the borrower has the UST they borrowed. The collateral put up by the borrower becomes now property of the liquidator.

Liquidators are recompensed for their service by means of a premium, i.e. a discount on the price of the asset used as collateral. The discount rate on Orca (Kujria) can vary from 1% to 30%, and bids can be made at any of the premiums.

Analysis

Conclusion

Using the contract of Anchor liquidations (terra1e25zllgag7j9xsun3me4stnye2pcg66234je3u), we can see that the number of unique users placing bids for bETH and bLuna is the following:

I've taken into account those bids which have been activated. Once we activate a bid on Kujira, it executes the message "activate bid" using the Anchor liquidations contract, both for aUST and UST bids, which doesn't allow to differentiate between activated bids.

The chart below shows the number of daily Kujira users, with a really high spike on April 9th (due to the Kujira scavenger hunt!).

Kujira contracts although being very useful, their messages need to be more clear.

For instance, let's check the following transaction:

https://terrasco.pe/mainnet/tx/76AD4532664A3B9325B30A8477A4568E2B7DAC6188A20658A124E0C2F0989820

Is a aUST bid submitted, but there's no way of knowing if the bid is for bETH, bLuna or other tokens. On the other side, we've got the following transactions for claiming liquidations on aUST bids (https://terrasco.pe/mainnet/tx/C0E1FA9DDC7C2E737A53F6AE00C227FB0663B32DCF532601069F60086BE0C0CB), where we have the bids_idx and also the collateral token. And finally, let's check the following three transactions:

https://terrasco.pe/mainnet/tx/15470A7890C499CEC0679C6D182CD415C10CAC42EE11B6BCAE9630AF28681836 -> Activated bid on Anchor liquidation, bid idx 43279 https://terrasco.pe/mainnet/tx/76AD4532664A3B9325B30A8477A4568E2B7DAC6188A20658A124E0C2F0989820 -> Submitted bid on aUST vault, bid idx 43279 (different sender) https://terrasco.pe/mainnet/tx/A8E5AA581459A88C93064812BFCC0053AE749AA343ABA172D508E9D97E1F1D6F -> Activated bid on aUST vault, bid idx 43279 (same sender as above)

But retracted bids, as I asked the Kujira team on Telegram, can be either on submitted or activated bids. And since submitted bids on aUST doesn't show the collateral token, and bids_idx can be reused, I've been unable to trully know the real number of claimed aUST compared to the submitted.

The total number of claimed bids on UST, a grosso modo seems to be 29282 on bLuna and 4493 on bETH, which represents a 46% and 53% respectively.

The table below shows the number of activated, retracted and claimed aUST bids. As I'll explain on my conclusions, I've found it impossible to find the real number of claimed overall, since activated minus retracted is lower than the claimed aUST ones for both bETH and bLuna (because retracted aUST bids can be either activated or not, but only activated aUST bids seem to differentiate between collaterals).