The following examines whether given todays Borrow NET APR it makes sense to Borrow vice just deposit into Earn. I will once again try use simple equations to make the data visible. I am using rates from the protocol on July 28th 2021 in the examples below. I will use 200 UST as input to use cases. I will also use a low loan to value (LTV) of 45% in example to mange risk given the 60% liquidation threshold.

 Anchor Borrow - https://app.anchorprotocol.com/borrow

   Anchor Borrow allows you to deposit collateralized form of LUNA (bLUNA) and take out a Loan. The protocol is incentivized  to pay you to borrow. If it goes above 60% your face liquidation.

Net APR = Distributed APR - Borrow APR

60.1% - 16.95% = 43.15% expected returns

Borrow Value / Collateral Value = Loan to Value (LTV)

90 UST / 200 UST collateral value = 45% LTV

Borrow Value * Net APR = Expected Returns

90 * 43.15% = 38.835

Expected Return / Collateral Value = Expected Net APR to Collateral

38.835 / 200 = 19.4175%

Anchor Earn Rate = 19.43%

The above shows that you earn less than the 19.43% that Earn is currently paying. This indicates that it is now a more complicated decision than a few weeks ago. You risk Liquidation if the price of bLuna goes down. The benefit is that you are getting a return on your HODL Luna that you do not want to Stake. You will also soon be able to use other Crypto than Luna as collateral. The other consideration is that Earn pays you UST while Borrow pays you ANC. The price of ANC has been dropping for a while now. It is up to you to decide if you want to stack your ANC or convert it to either UST or more LUNA.

Please review my other articles at https://www.publish0x.com/crytpo-adventure-by-ira