Earn Anchor Deposit Rate in UST pools

Hi @josedelphi and thank you!

I like your suggestion. Effectively it increases the bottom line (higher APR) by making sure that all USTs in a pool are earning the Anchor Deposit rate. While in my implementation there would be always a fraction that is not earning it. The only downside that I can think of, as you mention is complexity. While in the sliding window implementation, you are really depositing and withdrawing only below/above a certain % of UST in the pool, here you are doing it every transaction. You are essentially hitting the aUST/UST virtual pool every swap transaction. Since you are rolling them in one blockchain transaction I think it doesn’t really matter. Therefore the only consideration left is the complexity in the UX. Since effectively all the pools with UST are now going to be aUST pools.

I cannot comment on that, but tbh if it is earning a higher APR and it is not costing any slippage or transaction fees, I think this works quite well and I second it.

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There’s now a bounty to build this idea as a virtual constant product pool which “swaps” UST<>aUST by depositing or withdrawing from Anchor. The bounty is on the Astroport Discord server (the #dev-chat channel).

The virtual pool approach is the one proposed by @josedelphi


i m curious on mars interaction with astro and nexus

Seems like an interesting idea. Although it may contribute to Anchor’s imbalance between depositors and borrowers, shrinking the yield reserve.

I agree with @stefan’s willingness to be wary of the smart contract risk incurred by Anchor however given its track record and current community audit, I believe it will become less of a risk factor.

Sounds like some intresting solutions have been posted above. I entrust the devs and endorse a healthy bounty to create a new XYK pool using aUST.

That yield is currently just sitting there untouched. It’d be great if Astro could build in a function for bLuna providers to claim the yield.