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Anyone else thinking anchor kinda sus

How is anchor maintaining such a high interest rate

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    What are your thoughts?

    Hey you can check this out https://seedly.sg/opinions/20-fixed-returns-on-your-savings-but-can-we-do-better-than-that it's my take on anchor and my attempt in simplifying how their yields are

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      Chang Yue Sin

      Chang Yue Sin

      Edited 11d ago

      Level 4ยทConsultant at Capgemini

      Assuming that this post is not after watching my video, here is a guide on how anchor works: https://www.youtube.com/watch?v=_02qSGaSsC4&t=216s

      โ€‹

      In short, yields to depositors are from staking rewards. Just think of borrowers putting REITs as collateral into a pool. The dividends from REITs used to pay depositors + the borrowing interest rate. As simple as that.

      โ€‹

      With regards to sustainability, they are doing multiple things such as introducing new collaterals, optimization, yield farm etc. etc. https://twitter.com/anchor_protocol/status/1412614294185943043?s=09

      โ€‹

      The worst case scenario, 20% would fall back to the weighted-average of the collateral yields in the pool in the long-term.

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