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    140. Anchor Collateralization

    In this dashboard, we will study some metrics of the bAssets collateral on Anchor Protocol. So, you must be wondering how Anchor able to pay 19.5% APY on $UST stablecoins deposits right? Well, this is where Anchor generate their income to pay the Earn side. Anchor accepts bAssets which is the bonded PoS, yield-bearing assets like $LUNA or $ETH (for now, more coming soon😎). Anchor collects the rewards of the bAssets and also from users borrowing against their collateral.

    First, let's take a look at daily volume of $bLUNA and $bETH deposited to Anchor as collateral. We saw much higher $bLUNA deposited daily both in term of transaction count and also volume in USD. Highest daily volume of collateral deposit was over 200M USD with almost 50-50 by bAssets.

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    However, users also can withdraw their collateralized bAssets instantly at any time. So, let's take a look at the net flow of bAssets on Anchor. We can see that for $bLUNA, the outflow outweighs the inflows but the opposite scenario for $bETH despite highest daily withdrawal couple days ago.

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    Anchor collateral value has been declining recently. This can be seen from total collateral value on Anchor dashboard. It has something to do with the decreasing yield reserve, the Degenbox and recent drama with Wonderland dev which caused many people losing faith in the project. However, the fundamental of Anchor is very solid so if I were you, I'd buy more $ANC and $LUNA.