Introduction

Anchor is a savings protocol on the Terra blockchain that provides lending and borrowing services. Users are able to lend stablecoins and earn a stable yeild of ~20% APR. This stable yield is backed by the yield reserves that is continually replenished using rates paid by borrowers.

To borrow on Anchor, you'll need to deposit bonded assets (bAssets) as collateral against which your borrowed stablecoins are hedged.

This mini dashboard takes a dive into bAsset provision on Anchor, and providers who borrow and place loans in earn.

Method

We present a layered approach in our investigation where we first determine the total number of bAsset providers. At the next step, we determine the number of the providers who have ever borrowed and count them. The number of earn depositors are further filtered from the previous set.

The loan to value ratio which is popularly known as LTV, is the maximum amount of stablecoins that a user on Anchor can borrow with respect to the user's amount of bAssets provided. Since bAssets fluctuate in value, LTV may change with time.

The graph below shows the total number of Terra wallets who have provided collateral for Anchor, either in the form of bLUNA or bETH.

The next graph below also shows the number of providers who borrow after providing collateral.

The number below also represents the borrowers who directly deposit into Anchor Earn.

Findings & Conclusion

As of 10 AM GMT, September 8, 2021, it was found that out of 26,108 bAsset providers, 21,854 borrow against their collateral, and 18,570 of those deposit the collateral back directly into Anchor earn.

The average leverage risk (LTV) across these groups of investors could not be determined due to time constraint and complexity of computation.