From the chart above we can deduce that after the max LTV increase, people borrowed UST from Anchor with the intention of depositing some or maybe all of the amount back into Anchor. We can see that the main UST deposit growth periods pointed out on the Total Deposits chart (July 22-24 and 26-29) are also mostly days where majority of depositors on Anchor also borrowed. Thus, increasing both the daily deposited and the total deposited amount of UST.

We can see that in the past two weeks the total deposited UST amount on Anchor has increased around 32%. Main growth seems to occur between July 22-24 (More than 50M UST) and July 26-29 (Again more than 50M UST). To understand what might have caused these increases we are going to take a look at the daily borrowed UST amount and the daily deposited UST amount.

How did the total deposited UST amount change?

Conclusion

• The development making the most impact on the daily UST deposit amount on Anchor in the previous 2 weeks seems to be the max LTV being increased to %60.
• Both the daily UST borrows and deposits peak after the max LTV increase and overall have a higher daily average in the following days.
• This is explained by the fact that during the days where there was the most growth for the Anchor total deposit amount, depositors also borrowed implying that they borrowed UST from Anchor to deposit it back into Anchor.

Since we also included the daily UST borrow totals, we can see that both the total UST borrows and deposits peaked on July 23. Meaning that something must have happened that would increase the total volume on the Anchor Market.

On July 22, close to 11 PM EST, Max LTV was increased to 60%. This meant that borrowers could borrow more UST before their loan would be liquidated. This increased daily borrowed UST drastically on the 23th and after experiencing a brief fall, raised the average daily borrowed UST amount in the following days.

It seems like the max LTV increase also increased the daily UST deposit amount which peaks on the 23rd and the average daily deposit amounts seems to increase compared to previous days.

Lets try to find out why the max LTV increase also increased the daily deposited amount

Daily Deposits and Borrows - What might be causing the changes?

Why did I include borrows on an analysis about daily deposits? The answer becomes clear when we look at the chart below.

Before we begin, lets refresh our memory on some of the terms used on Anchor using the docs.

Depositor: A user that lends Terra stablecoins (Only UST for now) to the Anchor money market. Deposited stablecoins are pooled and lent out to borrowers, with accrued interest pro-rata distributed to all depositors.

Depositors receive newly minted Anchor Terra (only aUST for now) in exchange for their deposit. aTerra tokens represent a depositor's share in the stablecoin pool and can later be redeemed to claim the initial stablecoin deposit, along with accrued interest and depositor subsidies.

Max Loan-to-Value (LTV): Borrows can be made until the loan's LTV ratio reaches the MAX LTV, calculated based on collateral types, their prices, and deposit amount. Loans with a LTV ratio higher than MAX LTV can be liquidated, and thus it is important for borrowers to closely maintain their LTV ratios as changes in collateral prices may occur.

Introduction