12 May 2022 13:15, UTC.
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The Anchor protocol community has proposed lowering the target UST deposit rate of return to 4% per annum. It is assumed that this contributes to the restoration of parity of the algorithmic Stablecoin with the U.S. dollar.
The author of the “emergency proposal,” Daniel Hong, was one of the developers of the original Anchor smart contract. He explained that lowering the deposit rate would stop additional USTs coming into circulation.
3/ I believe TFL should have done this first, but I’m doing it as one of the three people who worked on the initial contract design of Anchor.
I equally love everything I have done in my lifetime, regardless of how I feel about it later on
– Daniel Hong 🪄 (@unifiedh) May 11, 2022
Anchor uses a floating interest rate. If approved, the initiative would lower the minimum to 3.5 percent and the maximum to 5.5 percent. The vote on the proposal will last until May 18.
As of this writing, the rate of return on the record is 19.64%.
Since the start of the crisis in the Terra ecosystem, nearly 9.5 billion UST has been withdrawn from Anchor. The largest outflow of funds was recorded on May 9 – 3.33 billion UST. The yield reserve of the protocol is also almost depleted.
As a reminder, BlackRock and Citadel have declared no involvement in the collapse of UST.
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