Back to Basics I: Deposits and Borrows

Question wants us to show visually how and why deposit and Borrow amount on Anchors are different. i did this by investigating a 6 month period and as expected data shows that Deposits are Always more than Borrows. for those who might not be familiar with lending in crypto, this is crucial to know that when you collaterize an asset to get a loan, your asset is in risk of liquidation in the face of sharp price dumps.

what one must do is that keep their loan's Health Factor as low as they can take the risk. if value if collateral drops below the amount Borrowed, anchor will liquidate collateral to keep the system safe and running and make sure to secure it's interest.

overall chart shows that area under line getting bigger in both Deposits and Borrows which means a steady growth in anchor loans.

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Back to Basics I: Deposits and Borrows