So Terra has its own “degenbox” in which you can give aUST as collateral and lend UST back, deposit it on Anchor and then do the same trick again.
Guess what, it’s already busted (as it should be). You can deposit your aUST and lend UST back for 17,5% – basically no gains but still taking the risk of liquidation.
Abracadabra still has 2.5% borrow rates, that ponzi needs to collapse fast, otherwise its just destroying the Yield Reserve.
This is such a bad take.
a) There is nothing about the Abracadabra Degenbox that has any characteristics of a ponzi scheme or ponzi tokenomics. That is blatantly wrong. I encourage you to go read what a ponzi scheme is.
b) The notion that the Abracadabra Degenbox is depleting the yield reserve is not a good reflection of reality. Anchor *wants* as much UST deposited as possible. That’s what that product is there for. The team also needs revenue sources to offset Anchor Earn yield, which is why the team is introducing additional collateral types.
Lol, are you new here?
I think you’ll find most people are not borrowing UST when depositing aUST as collateral…