1/ With the passing of Prop 26, $ANC tokenomics are getting an upgrade! 🎉

Let’s dive into what the move from $ANC to $veANC will look like & how it impacts voting, staking rewards, & the soon-to-come collateral gauges which could lead to the #AnchorWars⚔️ 🧵 2/ At a high-level, $veANC, also known as vote-escrowed or vote-locked $ANC, will replace $ANC as the voting token for the Anchor ecosystem & introduce vote locking periods to the tokenomics model.

1/ As discussed in this last week’s semi-dynamic Earn rate AMA, the Earn rate will update today, May 1st, to exactly 18% APY @ 12pm EST.

Let’s recap some of the details around the semi-dynamic Earn rate 🧵

For a more detailed view into the new rate, check out this thread 👇

https://twitter.com/anchor_protocol/status/1507052921745256449

2/ The Anchor Earn rate adjusts dynamically by up to 1.5% each month based on if the yield reserve appreciated or depreciated. The floor is 15% APY & the ceiling is 20% APY.

1/ Following @AcalaNetwork’s plans to join @wormholecrypto, Acala & the Anchor Protocol community will be working together to grow the decentralized stablecoin space through a variety of integrations spanning the @terra_money & @Polkadot ecosystems! 🎉🎉🎉

Anchor 🤝 Acala 2/ Acala & @KaruraNetwork, Acala’s Kusama-based parachain, will expand Anchor’s collateral options with the addition of Liquid DOT ($LDOT) & Liquid KSM ($LKSM), Acala’s yield-bearing liquid staking derivatives. 💥

1/ There have been a few questions from the community about the difference between $wasAVAX & $sAVAX that this thread will answer.

So let’s break down the key differences between these two assets for our @avalancheavax frens! 🔺🧵 2/ Let’s start with $sAVAX. What is it?

❇️ $sAVAX is a version of $AVAX that a users gets after they stake their $AVAX with @BenqiFinance

❇️ $sAVAX is an asset native to the Avalanche blockchain 🔺

1/ Avalanchooooorrs, the Anchor front-end devs have been working hard for you guys to implement the new “Add to Wallet” feature that allows you to quickly add $UST, $aUST, & $ANC to your MetaMask or WalletConnect wallet with the click of a button. 👇 2/ Simply click on "Connect Wallet" in the top right of the Anchor Web App, choose your wallet, and then click on your wallet address in the top right to reveal the "Add to Wallet" feature.

1/ With the passing of Prop 20, Anchor will now implement a more sustainable semi-dynamic Earn rate!

Let’s cover what this will look like 🧵 2/ In its simplest form, this proposal involves two parameters on the Earn side and we will breakdown each one:

1. Frequency - How often the rate can change.
2. Cap on Rate Adjustments - How large the rate changes can be.

1/ It’s happening – $sAVAX is now live as a new collateral option on Anchor!

You can now borrow $UST via @wormholecrypto with $AVAX as collateral through the xAnchor implementation of Anchor on @avalancheavax 2/ To add $sAVAX as collateral on Anchor, first navigate to Benqi, connect your MetaMask or other supported browser wallet, and convert $AVAX into $sAVAX. You will then have $sAVAX in your wallet.

staking.benqi.fi/stake

1/ Don’t forget to vote on Prop 20 currently live on Anchor to implement a semi-dynamic earn rate!

app.anchorprotocol.com/poll/20

Let’s dive into the proposal a little more in the thread below 👇 2/ Much discussion over the past several months in the Anchor community has revolved around the long-term sustainability of the protocol. A monsoon of deposits attracted by the fixed, high-yield for $UST on the earn side has outpaced collateral inflows, depleting the reserve.

1/ Thank you to @ZeMariaMacedo, @atari7600, @retropong, & @retrogrademoney for dropping the tokenomics knowledge on the Anchor community on last week’s AMA! Also, big thank you to @danku_r for hosting 🙏

Listen to the recording here 👇

twitter.com/i/spaces/1nAKE…

Highlights 🧵👇 2/ @retrogrademoney posted a proposal to the Anchor Governance Forum to upgrade the $ANC tokenomics model. Retrograde is a new protocol (Similar to Convex on ETH) building on Terra that is ushering in a new governance structure & is working closely on @astroport_fi & Anchor.

1/ Poll 15 on Anchor Governance which increases $bLUNA LTV to 80% passed and will be executed today, Monday, Feb 7th. LTV language has changed to “Borrow Usage” to show the loan ratio.

A few changes to note 👇 2/ The Anchor webapp 50% borrow limit has been increased to 75%. Keeping it 5% below the 80% Borrow Usage reduces the likelihood of liquidation.

1/ Let’s talk about Anchor’s V2 Borrow Model which will enable Anchor to rapidly onboard compound liquid staking derivatives like $LUNAx or $sAVAX as new collateral types.

What does the borrowing process look like in V2 & how does interest for borrower’s work? 🧵👇 2/ Let’s start with how interest works. In the new model, instead of yield from liquid staking derivatives like $bLUNA being redirected to depositors on the Earn side, the user’s collateral assets ($LUNAx in our example) will appreciate over time like $aUST.

1/ As discussed in today’s Anchor Community AMA on Spaces, Anchor’s V2 Borrow Model is a new idea that could enable new forms of collateral such as mSOL & LunaX to be added much faster than the existing model. 🧵👇 2/ As it stands today, bAssets can take upwards of 2-3 months to be added to Anchor due to third-party protocol integrations & audits. This reduces Anchor’s efficiency & expediency in listing new collateral.

1/ Prop 13 seeking to use the Anchor Community Fund to issue refunds to users affected by the Anchor Oracle Price Feeder issue on December 9th, 2021 is now live for voting 👇

app.anchorprotocol.com/poll/13 2/ If this proposal passes, the market rate equivalent of Anchor tokens, plus a 5% boost, will be withdrawn to a vesting smart contract that linearly unlocks the funds over a 2 month period to avoid market instability.

1/ December was Anchor’s best month yet with over $2.6B new $UST deposits. 🚀 The surge in deposits helped propel Anchor’s TVL over $10B just 9 months after launch. But that’s not the only thing that happened in December… 🧵 2/ Total bLUNA and bETH collateral on Anchor Borrow experienced significant growth increasing 83% MoM from $3.1B to $5.67B. 📈

1/ Following up on the December 9th oracle issue that impacted a number of Anchor Protocol users, we’d like to provide additional clarity on the situation and highlight the varying avenues being discussed to allow those users to be made whole.

https://twitter.com/anchor_protocol/status/1469416650675929088

2/ We noticed almost immediately that the first wick in the $LUNA price to $58.44 (below the market rates on exchanges) was erroneous as a result of the Anchor Oracle Feeder ingesting stale prices.

1/ At 08:43:37 PM on December 9th (UTC), the Anchor Oracle Price Feeder registered a $bLUNA price of $58.44, significantly lower than the reported $LUNA price on exogenous exchange venues, quoted as ~$66.10 on Binance’s LUNA/USDT pair at the time. 2/ The inaccurate price reported by the Anchor Oracle Price Feeder caused erroneous liquidations for 239 users who had open borrow positions below the max LTV of 60%. In total, ~690,727.489 bLUNA (~$37.249M total discounted value) were liquidated.

1/ We’re going to begin providing some more granular updates regarding Anchor’s technical progress behind the scenes due to popular demand in the community -- starting now.

We also plan on building out these updates to include a broader range of items moving forward. 2/ Development Updates

Over the past month, the Anchor team has primarily been working on:

- Launching the new Liquidation Queue Contract -- currently live.
- Hired a new developer to work on the Anchor backend and SDKs.
- Working on new Oracle contracts using @chainlink.

1/ Proposal 6 to register the new Liquidation Queue Contract has now passed the governance process. Liquidations for $bETH and $bLUNA collateral will soon be routed to the new Liquidation Queue contract (details below).

app.anchorprotocol.com/poll/6 2/ The successful Proposal 6 will execute at a block height of 5,187,130, roughly translating to the following times:

11/05/2021 -- 08:12 PM PST
11/06/2021 -- 12:12 PM KST
11/06/2021 -- 03:12 AM UTC

1/ The Terra Columbus-5 Mainnet is now live and the Anchor contracts have been successfully migrated!

The 3-hour window for users with open borrow positions on Anchor has now commenced. The web app is now accessible. 2/ The price oracle feed will resume on Thursday, 09/30 at 17:05:00 UTC. We will post an update once the 3-hour window period ends.

1/ In preparation for the Columbus-5 mainnet migration, Anchor USERS and DEVELOPERS should once again read through the steps below attentively for the Anchor contract migration execution for Col-5.

https://twitter.com/anchor_protocol/status/1438311757458534403

2/ Additionally, Anchor.js, AnchorCLI, and Anchor Earn SDK versions for Bombay-12 and Columbus-5 were recently released, usable by external developers.

1/ bETH is now live on the Anchor web app!

You can now borrow $UST against bETH, a wrapped version of the stETH staking derivative for ETH 2.0.

We teamed up with @LidoFinance to provide a guide to using bETH on Anchor.

blog.lido.fi/collateralisin… 2/ What is bETH?

bETH is a token that represents stETH tokens on the Terra blockchain, with bETH staking rewards claimable in the form of UST.

Anchor borrowers that deposit bETH as collateral accrue $ANC rewards, effectively meaning that they get paid to borrow against ETH.