rise while rewards APR remains static, decreasing the incentive to borrow
2) People repay their loans, reducing the total borrowed amount and decreasing the interest rate on loans to push the overall APR to >0
3) We just bounce back and forth around 0% overall, we’re in equilibrium
4) Overall rewards APR - borrow APR bleeds until it’s in equilibrium with Anchor Earn at 19/20%
Or something different?
Borrowing APR is dynamics, as always... and it is reasonable to pay interest when borrowing..
I know both of these things, just wondering what people think will happen (in terms of the behaviour of Anchor users)
There is a new proposal on Anchor ... you could search a bit. Would guess they will evolve over time, given recent competition appearing...
https://t.me/anchor_official/156172
That’s got nothing to do with my question - which was about human behaviour, nothing to do with the protocol itself or any of the mechanisms. Everything is working as intended. I’m just wondering out loud what people will do now. Abandon borrowing, hold steady, or a small repayment flush to bring everything back in ‘balance’. At the moment it seems like the latter is happening.
Well...I abandoned my loan.....now wait as your first scenario describes. What about you ?
Sitting still, don’t see the need to move in or out at this stage.
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