Dynamic Rate, Mvmt. I

Q170. A recent governance proposal (https://forum.anchorprotocol.com/t/dynamic-anchor-earn-rate/3042) offers a dynamic Earn Rate as one solution to the problem of Anchor Protocol’s sustainability. Assess the following two questions: Based on defensible assumptions for key inputs (e.g. Anchor’s collateral blend and growth, as well as rates paid to borrowers), define a target range (+/- 1.5%) for the Anchor Earn rate that you think would be sustainable without regular capital infusions Assess the impact of declines in “earn rate” for other protocols, e.g. Aave, Compound, on key protocol metrics (e.g. user growth/decline, rate of user growth/decline, capital deposited, etc.)