With 209M worth of UST in debt as of writing, it can be said that Anchor is in a remarkable position given that it is only 4 months old.

Aggregated Stats

Other than borrower groups, it also can be seen that although liquidations occur, they are normally magnitudes lower than the repayment amount initiated by the borrowers. Therefore, it can be assumed that Anchor borrowers normally have the means of repayment during times of extreme volatility. Repayments in this case are used to avoid paying premiums if they should go over the max loan-to-value (LTV) ratio and get liquidated.

Then, there are the "opportunistic" borrowers. These borrowers usually borrow when the price of Luna is showing signs of going up and then spooked into repaying their debts on the next spike down a few days to a few weeks later. The behavior may be explained by the temptation of not having to repay the UST borrowed as long as the collateral's price keep going up, thus keeping their positions leveraged. This group can be found on April 9 (repaid April 18), April 19 and April 22 (repaid April 23), May 24 (repaid May 28), June 1 (repaid June 4), and so on.

Secondly, there are the "intraday" borrowers. This group can be identified on days when are at an extreme, either up or down. These users normally borrow and repay their debts on the same day, judging by how the repayments and borrows both spike to their local peaks on the same day. The hypothesis for this behavior is that this group's borrowers try to leverage their positions on days of extreme volatility in order to grab a quick buck without hurting their initial investments. This plan sometimes backfires, judging from how the repayment is higher than borrowed amount on some occasions. This group can be seen on March 24, March 29, May 13, and May 19.

Based on observations and comparison of these two graphs, it can be said that a few types of users exist on Anchor. Firstly, there are the average users that make up the base of the graph. These users do not have any discernible traits and represent the constant user engagements in Anchor, their presence more most obvious at times when the price of Luna is stable, such as from March 28 to April 5 and June 24 to July 6.

The graph below shows the aggregated amount of borrows, repayments, and liquidations. The liquidation amount compared to repayment amount here shows just how much debt is willingly repaid rather than getting liquidated. Besides that, over 1B worth of UST had been borrowed since Anchor's inception on March 17, signifying the protocol's outstanding performance as a lending platform.

Anchor borrows are repaid in two ways, namely user initiated repayments using UST or liquidations by the liquidations contract, where a liquidator buys up bLuna from the liquidation contract at a premium of up to 30% to pay off a borrower's debt. The graphs below show the amount of UST being borrowed vs the amount repaid or liquidated and the daily added debt vs the price of luna respectively.

Borrows and Repayments