The massive Anchor DeFi ponzi is rapidly plunging deeper into a death spiral. Deposits skyrocket while Borrows wane. They can’t reduce their 20% ponzi yield without triggering a mass exodus.
by DontMicrowaveCats TL;DR- Anchor Protocol is one of the biggest Ponzi schemes in DeFi. They promise people who deposit UST stablecoin to their platform an eternal 20% yield. The only way they can pay this yield is through borrower interest payments and the “Yield Reserve”. The Yield Reserve is basically just the protocol’s internal fund … Read more