Modify Market Parameters
Last updated
Last updated
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 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
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
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