Anchor Protocol: bLUNA and bETH Collateral Trend

In Anchor Protocol, bonded assets are tokenized representations of staked assets like ETH & LUNA. These bonded assets allow crypto token stakers to gain liquidity and utilize them in defi applications such as Anchor.  When bonded assets are deposited into Anchor as collateral, they can be used as collateral for UST borrowing. In this post, we will look at the amount of bLUNA and bETH deposited as collateral in Anchor Protocol.

On Jan 28th 2022, there was about 3.88 Billions USD worth of bLUNA deposited as collateral, while 444.59 million USD worth of bETH was deposited. That translates to roughly more than 90% of collateral in Anchor is dominated by bLUNA.

What has been the trend in the deposited bonds assets for the past ninety days? Here is a chart showing the trend over the past ninety days. The amount of bonded assets on Anchor peaked during 2021 Christmas time and then onwards they are on downward trend. This is inline with the downward trending we see in broader crypto ecosystem.

This chart shows the percentage of bLUNA vs bETH in Anchor Protocol. As you see in the chart below, bLUNA collateral accounts for more than 90% of total value locked. bETH collateral is has barely touched the 10% during 3rd week of October 2021 but mostly hovering between 5%-9%.

The last two charts shows the net amount of collateral changed, not in USD value but in bETH & bLUNA token, in the Anchor Protocol.

Observations

Here are the few observations from going through the Anchor’s bonded asset deposits

  1. bLUNA donimates the collateral value locked in Anchor and it accounts for 90%+ total value.
  2. bETH collaterals domination reached the maximum of 10% during the third week of October 2021 and it has dropped to 5.5% in early Jan 2022
  3. On 24th Jan 2022 we observed massively withdrawal of bLuna & bETH tokens. Though the amount of bETH withdrew from the Anchor slowed down after 24th Jan, bLUNA withdrawals are going still strong!

Leave a Reply