Thread by @TerraLUNADaily

Anchor's Satellite: How #TeFi Project Impacts Anchor

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1/n Issue
For a lending platform such as @anchor_protocol, increasing amount of deposits into protocol is a important factor.
The main purpose is to help Anchor have a stable amount of $UST to serve the loans.

In thread below, we'll talk about how #TeFi helped Anchor does this.

@anchor_protocol 2/n Projects that impacts on Anchor

Can you remember the last hackathon on #Terra - #Spacecamp? That's when the contest found projects to help Anchor solve this problem.
They include: @orion_money, @ApolloDAO, @angelprotocol,...

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 2.1/n @orion_money

The #cross-bank has a mission to convert stablecoins outside of terra such as $USDT, $BUSD into $UST, which are then deposited into Anchor.

https://twitter.com/TerraLUNADaily/status/1456613545777324037

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 2.2/n @angelprotocol

With the commitment to contribute a part of revenue from more than 40 terra projects.
Protocol has send money from donations to Anchor Protocol to generate $UST flow to be used for charity activities.

https://twitter.com/TerraLUNADaily/status/1461554283573252096

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 2.3/n @ApolloDAO

The protocol that facilitates cost-efficient and secure auto-compounding returns.

With "Self Repaying Loan" function in version 2, Apollo DAO will help maximize the profit of depositing $UST into Anchor.

https://twitter.com/TerraLUNADaily/status/1457022906181976069

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 2.4/n
Besides the stable interest rate of 20%. With the seigniorage mechanism, these projects that increase the demand for $UST will also capture value for $LUNA.
It is for the above reasons that these projects will receive great support from the #Terra community in the future.

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 3/n Conclusion

In order for the lending platform to operate healthy, the protocol is necessary to have a strategy to improve capital efficiency.
In other words, Anchor needs to increase its output: $UST loans.

There are 2 ways to do this 👇

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 3.1 Increase $UST loanable on collateral

With option 1, the risk comes from Altcoins falling in price according to $BTC, resulting in collateral assets being sold off for liquidation. To minimize risk, both users and project reduce their LTV lv. This's a huge problem in Lending.

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 3.2 Increase the amount of collaterals to serve more users

Currently, the collateral tokens that are accepted on Anchor are still very few: $bLUNA, $bETH and soon $bSOL.

Looking at #AAVE, it can be seen that this protocol is accepting more than 10 collaterals.

@anchor_protocol @orion_money @ApolloDAO @angelprotocol 3.2
Hopefully in the future Anchor will accept more collaterals for large cap tokens like: $DOT, $AVAX or even put $BTC into #TeFi.
It will be huge for both Anchor &
@terra_money ecosystem

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