Overview

Methodology

A Depositor is a user that lends Terra stablecoins to the Anchor money market. Deposited stablecoins are pooled and lent out to borrowers, with accrued interest pro-rata distributed to all depositors.

Borrowers are entities that create bAsset-collateralized loan positions to borrow Terra stablecoins from the Anchor money market.

TLDR: Depositors deposit UST on Anchor to get 19.58% yield on their amount deposited. Borrowers borrow UST on Anchor to get a loan based on the amount of bAsset they put up for collateral.

1. Chart Daily Volume in USD for both Deposits and Borrows on Anchor
2. Compare daily unique depositors vs borrowers to find a relationship between deposit and borrow volume

Analysis

The chart below highlights the daily volume in USD for deposits vs borrows in the past 60 days. We see some clear outliers for both deposits and borrows, but it is evident that daily deposit volume is more than daily borrow volume for most days.

Next, we compare the number of unique addresses that are depositing and borrowing on Anchor. It is clear that again, there are more unique depositors compared to borrowers. (chart looks at past 30 days)

1. Deposit volume > Borrow volume on Anchor in the past 60 days.
2. There are more unique addresses depositing vs borrowing
3. I believe the primary reason why deposits are greater than borrows is due to the fact that Anchor is known for it's industry leading APY on deposits, hence attracting more users that deposit UST. Secondly, I believe that depositing is far more risk free than borrowing(liquidation risk in borrowing) and hence new users tend to stay away from it.

Insights