Skip to content

Updating information on how ANC captures protocol fees #4

New issue

Have a question about this project? Sign up for a free GitHub account to open an issue and contact its maintainers and the community.

Sign up for GitHub

By clicking “Sign up for GitHub”, you agree to our terms of service and privacy statement. We’ll occasionally send you account related emails.

Already on GitHub? Sign in to your account

Open
pedro-explore wants to merge 4 commits into
base: master
Choose a base branch
from
Open

Updating information on how ANC captures protocol fees #4

Show file tree
Hide file tree
Changes from all commits
Commits
Show all changes
4 commits
Select commit Hold shift + click to select a range
f05edea
Update modify-anc-parameters.md
pedro-explore Jul 14, 2021
0dd5dfe
Update anchor-token-anc.md
pedro-explore Jul 14, 2021
198b357
Update anchor-token-anc.md
pedro-explore Jul 14, 2021
9cf0868
Update anchor-token-anc.md
pedro-explore Jul 14, 2021
File filter

Filter by extension

Filter by extension
Conversations
Failed to load comments.
Loading
Jump to
Jump to file
Failed to load files.
Loading
Diff view
Diff view
4 changes: 2 additions & 2 deletions protocol/anchor-governance/modify-anc-parameters.md
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -8,14 +8,14 @@ The **Modify ANC Parameters** poll enables users to submit governance polls that

`Epoch Period` is the the minimum time delay required between subsidization events, which handle reward claiming of bAsset collaterals, direct deposit rate subsidization, and readjusting the ANC emission rate based on the current deposit rate.

The `ANC Purchase Factor` determines the portion of bAsset rewards and collateral liquidation fees \(bid fee\) that is used to purchase ANC tokens.
The `ANC Purchase Factor` determines the portion of flow into the yield reserve (from bAsset rewards, liquidation fees \(bid fee\), and excess yield) that is used to purchase ANC tokens.

`Staking Reward Factor` defines the portion of purchase ANC tokens that are distributed as staking rewards to stakers of ANC.

| Parameter Name | Description |
| :--- | :--- |
| `Epoch Period` | Minimum time between operations for bAsset reward collection, deposit rate subsidization, and ANC emission rate adjustment |
| `ANC Purchase Factor` | Portion of bAsset rewards and collateral liquidation fees \(bid fee\) used to purchase ANC |
| `ANC Purchase Factor` | Portion of flow into the yield reserve used to purchase ANC |
| `Staking Reward Factor` | Portion of purchased ANC distributed as staking rewards to ANC stakers |

## Genesis Values
Expand Down
8 changes: 4 additions & 4 deletions protocol/anchor-token-anc.md
View file
Open in desktop
Original file line number Diff line number Diff line change
Expand Up @@ -24,19 +24,19 @@ ANC tokens generate a buying pressure that increases proportionally with Anchor'

### Protocol Fees

ANC captures protocol fees generated from Anchor, where 10% of value flowing into the yield reserve used for the value accrual of ANC tokens. Anchor's protocol fees are sourced from bAsset rewards, excess yield, and collateral liquidation fees.
ANC captures fees generated by Anchor Protocol. These fees are sourced from the flow into the yield reserve which comes from bAsset rewards, excess yield, and collateral liquidation fees. `ANC Purchase Factor` (currently 10%) of this value flowing into the yield reserve is used to purchase ANC tokens, which are then redistributed to ANC stakers. The `ANC Purchase Factor` can be adjusted through governance.

#### bAsset Rewards

A portion of rewards from deposited bAsset collaterals are used to purchase ANC, with the remainder used to replenish the yield reserve. The ratio of bAsset rewards used for ANC purchases can be adjusted thorough governance if the yield reserve's inventory rises to a sufficient level.
Rewards from deposited bAsset collaterals are used to replenish the yield reserve.

#### Excess Yield

Deposit yields in excess of the target deposit rate is accumulated to the yield reserve, with a portion used to purchase ANC. Purchased ANC tokens are then redistributed to ANC stakers.
Excess yield over the target deposit rate, from borrower interest payments, is accumulated in the yield reserve.

#### Collateral Liquidation Fees

Whenever a loan is liquidated, 1% of the liquidated collateral value is sent to the yield reserve, which a portion of which is used to purchase ANC. This fee is applied separate from [bid premiums](loan-liquidation.md#premium-rate).
Whenever a loan is liquidated, 1% of the liquidated collateral value is sent to the yield reserve. This fee is applied separate from [bid premiums](loan-liquidation.md#premium-rate).



Expand Down