Curriculum·Graduate·G105
Protocol Financial Statements
Anchor Protocol and Terra, culminating in May 2022.5 percent on the UST stablecoin, and where that yield came from was readable on-chain: not from borrower demand, which was far smaller than the deposits, but from a yield reserve that was visibly draining, for which Anchor asked the Luna Foundation Guard for about 450 million dollars in February 2022.
Start with lesson 14 lessons · about 2.1 hours · free account to read in full
Lesson 1 opens on
Anchor Protocol and Terra, culminating May 2022
5 percent a year on the UST stablecoin, a rate it advertised as stable and near risk-free. Where that yield came from was readable on-chain. Anchor earned income from borrowers, but borrower demand was far smaller than the deposits it had to pay, so the gap was covered by a yield reserve, and that reserve was visibly draining.
The lessons
- G105-01A protocol's balance sheet on-chainRead a protocol's on-chain assets, reserves, and debts as a balance sheetabout 31 min · opens on Anchor Protocol and Terra, culminating May 2022
- G105-02Where the yield actually comes fromSeparate the three sources of a yield: revenue, a reserve subsidy, and token emissionsabout 31 min · opens on OlympusDAO, 2021 to 2022
- G105-03Solvency, and reading a runDistinguish solvency from liquidity, and explain why an asset-liability mismatch causes a runabout 31 min · opens on Celsius Network, June to July 2022
- G105-04The off-chain hole a query cannot seeState the hard boundary of on-chain financial reading: off-chain liabilities are invisibleabout 31 min · opens on Three Arrows Capital, June to July 2022