Anchor is trying to attract stable farms with an ease of mind, they just need to be a little better than other defi yields. They dont need to be 20% vs curves 10%. Each increase in % yields have diminishing return on TVL attraction due to limits of crypto ecosystem. Even if rates were to be 100% lots of people outside of crypto would still be hesitant to join to farm anchor, but can more easily steal users from other defi. They just need to be better. I would do something like:
base_yield = (weighted average yield of all other defi farms) + 2-5%
yield = max(base_yield, 19.5)
I think what I would propose would be to change the yield number dynamically every week/month.
Anchor is trying to attract stable farms with an ease of mind, they just need to be a little better than other defi yields. They dont need to be 20% vs curves 10%. Each increase in % yields have diminishing return on TVL attraction due to limits of crypto ecosystem. Even if rates were to be 100% lots of people outside of crypto would still be hesitant to join to farm anchor, but can more easily steal users from other defi. They just need to be better. I would do something like:
base_yield = (weighted average yield of all other defi farms) + 2-5%
yield = max(base_yield, 19.5)
I think what I would propose would be to change the yield number dynamically every week/month.
enforcing deposit limits to whales sounds like a stupid idea in blockchain era where you can create 1000 wallets instantly
Hey great article, how did you make the sexy diagrams?