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    141.Staking.Yield.Mvmt.II.Anchor.APY

    Anchor Protocol launched March 17, 2021, is the latest pioneering savings protocol built on the Terra ecosystem. Offer low volatility yields of up to 20% on Terra UST Stable Coin deposits. The platform connects a lender looking for a stable return on its stable coins and a borrower looking for stable coins from borrowable assets. Now, we want to talk about the situation that reserve yield reach to zero. In this circumstances the real APY of Anchor protocol is calculated based on the Luna staking yield and incentives of Anchor protocol.

    Introduction: As mentioned in the first section to calculate the real APY of anchor protocol without considering reserve yield, we should consider:

    • Amount of staked Luna
    • Staking rewards
    • Anchor airdrop
    • Anchor incentives (APY from borrowers and bassets)

    By considering these values the anchor APY is estimated as below:

    According to the results, the real APY of anchor protocol is going to be very changeable due to the lack of yield reserve. the comparison of these results with other stablecoin yield is presented in the following section.

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    In this section, the real APY of Anchor protocol is compared with Venus binance smart chain USDT stablecoin yield. According to the comparison, without considering reserve yield to Anchor protocol, its APY is very fluctuating but based on the staked Luna, can be very profitable in comparison with other stablecoin yields.