Try Quests to earn cryptoWhat Influences Anchor Collateral Ratio to Change and How Does It Affect Different Metrics?
This dashboard analyzes the Anchor Collateral Rate over the last two weeks and tries to identify what caused the changes in the ratio. Also takes a look at how these changes affected different metrics.
Conclusion
- The Collateral Ratio crashes on the 23rd, caused by the sharp increase of the borrow amount after users reacted to the increase of max Loan-to-Value to 60% by borrowing a lot more UST and steadily increases afterwards with peaks and falls of smaller size
- Whenever the Collateral Ratio increases sharply the TLV also increases thanks to the increase in the Total Collateral Value. Decreases of the Collateral Ratio seem to be less impactful on the TLV.
- Days after sharp changes on the Collateral Ratio have lower total Borrow and Deposit UST Volume compared to the previous day
It seems like days after sharp changes on the Collateral Ratio (July 24-27-30) have lower total Borrow and Deposit UST Volume compared to the previous day. We ignore Jul 22 because the day after it also has a sharp change.
Overall Anchor TLV keeps increasing outside of few exceptional days. We can see that whenever the Collateral Ratio increases sharply the TLV also increases thanks to the increase in the Total Collateral Value (July 22-26-29). Decreases of the Collateral Ratio seem to be less impactful on the TLV since its usually caused by an increase in the total borrow amount instead of a decrease in the total collateral value
Peaks are caused by total borrow amount not increasing together with the collateral value. However, the crash on the 23rd is caused by a huge increase in the total borrowed UST. This is influenced by the Max TVL being increased to 60% on the same date, allowing people to borrow more before their loan being liquidated.
We can see that the ratio peaks on the 22nd, crashes on the 23rd and steadily increases afterwards with smaller peaks and falls. To understand what caused these changes we need to check the numerator (Total Collateral Value in UST) and denominator (Total Borrow Amount UST) separately.
Dataset and Assumptions
Before we begin I need to make some assumptions as I have noticed some differences in the values between the query results and the data displayed on anchor dashboard. The Total Collateral Amount (UST) varies by 5-10M from the numbers in the dashboard and the Total Borrowed Amount (UST) was around 40M more than the numbers in the dashboard. I could not identify the reason for these differences. Thus, I am writing down my assumptions for you to be able to check if there was something wrong with my assumptions or the datasets. I am still moving forward with my analysis because the general trend in both of the values are the same with my results.
Assumptions:
- Assume only borrows and repayments affect the total borrowed amount. I have checked and liquidations are rare and capture a really small amount compared to the total borrows. Thus, I did not include them in the analysis.
- Assume only collateral withdrawals and collateral deposits affect the total collateral in bLUNA and use (daily average LUNA price) *(Net Collateral Change in bLUNA Amount) to find the daily change in collateral value.
- Assume UST price as $1