Modify Market Parameters

The mechanism behind Anchor's money market is controlled by a set of carefully determined parameters, which are Target Deposit Rate, Threshold Deposit Rate, Buffer Distribution Factor, Max Borrow Factor, and Valid Price Timeframe. The Modify Market Parameters poll allows users to submit governance polls that adjust parameters that effectively control the Anchor money market.

Modifying the Target Deposit Rate, known as the Anchor Rate adjusts Anchor's target deposit APY, which the protocol attempts to achieve by constantly controlling the ANC emission rate as borrower incentives.

The Threshold Deposit Rate value is the minimum deposit APY that Anchor tries to ensure by making direct deposit rate subsidizations from the yield reserve if the current deposit rate is observed to be below this value. Interest buffer usage from direct subsidization events are limited to a Buffer Distribution Factor portion of the yield reserve's balance per subsidization event.

In cases of excessive and uncontrollable borrow demand, the Max Borrow Factor, which limits the amount of stablecoin liquidity available to be borrowed, can be adjusted to allow aTerra redemptions to occur.

The money market is configured to be somewhat resilient to price oracle downtimes, where price values are considered invalid if they are older than Valid Price Timeframe.

Parameter Name	Description
Target Deposit Rate	The Anchor Rate. Target stablecoin deposit APY of Anchor Protocol
Threshold Deposit Rate	Threshold deposit APY to trigger yield reserve's interest buffer distribution
Buffer Distribution Factor	Maximum portion of the yield reserve that can be distributed per deposit rate subsidization event
Max Borrow Factor	Maximum portion of money market's stablecoin liquidity available for borrows
Valid Price Timeframe	Time window before the money market considers oracle price data invalid

Parameter Values

Up-To-Date

Parameter Name	Human-Readable Value	Raw Value (In Contract State)
Target Deposit Rate	20.5% APY	0.000000044021551233 (per-block rate)
Threshold Deposit Rate	19.5% APY	0.000000041874158490 (per-block rate)
Buffer Distribution Factor	10%	0.1
Max Borrow Factor	95%	0.95
Valid Price Timeframe	60 seconds	60

At Protocol Genesis

Parameter Name	Human-Readable Value	Raw Value (In Contract State)
Target Deposit Rate	20% APY	0.000000030572045778 (per-block rate)
Threshold Deposit Rate	18% APY	0.000000040762727704 (per-block rate)
Buffer Distribution Factor	10%	0.1
Max Borrow Factor	95%	0.95
Valid Price Timeframe	60 seconds	60

Poll Format

Field	Description	Optionality
Title	Poll title	Required
Proposal Rationale	Short description of poll rationale	Required
Information Link	External URL for further information	Optional
Target Deposit Rate	Proposed target deposit APY of Anchor Protocol	Optional
Threshold Deposit Rate	Proposed threshold deposit APY of Anchor Protocol	Optional
Buffer Distribution Factor	Proposed maximum portion of the yield reserve distributable per direct subsidization event	Optional
Max Borrow Factor	Proposed maximum portion of money market's stablecoin liquidity available for borrows	Optional
Valid Price Timeframe	Proposed time window before the money market considers oracle price data invalid	Optional