🧑🏻‍🚀Agora post on bolstering sustainability for Anchor is now live! ✅TFL will be capitalizing Anchor’s yield reserve with 50 million SDT (~70 million UST) from its Stability Reserve Fund. ✅As a lynchpin of the Terra ecosystem, capturing ~22% of UST’s outstanding supply, this enables sufficient time for the introduction of more collateral types and self-sustainable protocols improvements coming in the next couple weeks and in V2. ✅Assuming a 35% utilization (current) with a 35% average loan LTV, the reserve boost will enable Anchor to support a 20% APY of $500M worth of deposits for an additional period of around 1.5 years. ✅The deployment is a one-off solution that will prevent the need for future intervention, allocating a significant runway for the protocol to introduce self-sustainable mechanics even during periods of low borrowing demand. ✅Note that this replenishment is funded by TFL and causes no burden on the LUNA community fund. UST will be acquired via on-chain swaps, thus incurring no downward pressure on LUNA. ✅ The planned upgrades to Anchor on the short-term horizon: 💥Introduction of bETH as collateral 💥Yield farming bAsset vaults 💥New liquidation mechanism (liquidation queue) 💥Increase bLUNA max LTV to 60% 💥 Other new collaterals: Following bETH, other PoS staking derivatives including bATOM, bSOL, and bDOT will be added as collateral to Anchor (estimates suggest that these Anchor can sustain $10B in deposits without relying on reserves in long term) 💥Algorithmic adjustment of long-term Anchor rates 💥Diversification of yield sources 🌈 For more details👇🏻 🔖 Agora thread: https://agora.terra.money/t/bolstering-anchors-sustainability/1516 🌍Retweet: https://twitter.com/anchor_protocol/status/1412614294185943043

Weekly draw for 4 prizes $5 $15 $30 and $50 in $BGL equivalent! More information - https://t.co/PjYeNuJaMc Join now - https://t.co/HxTlrFmi5T