Everyone know this massive market correction made many people be liquidated and thus removing a lot of borrowers from the system, where it lead to create a huge imbalance from depositors and borrowers making the borrow APR 18.49% where the deposit APY 18%, which this is not sustainable in the long run.
Do said the true interest rate for depositors under stress conditions it’s 10-12% I believe, that’s where the system ultimately should fall.
My concern here is it’s better to have a lower yet still pretty attractive yield than breaking the system.
Also I never understood why people want Terra / Anchor to partner with other to get more non crytpo savy depositors from the real world, I understand the more UST , the higher burn lunas, but if they would not use the borrowing function leading to another imbalance of the anchor system deposit yield payment system. What we really need for Terra eco system is more UST usage… I would really like to hear thoughts on this last point, how ultimately the system could even work if this happens where massive amount of UST flows to deposits but don’t borrow as much.