fix(rate_model): increase MAX jump rate and full rate #1233
Conversation
This file contains bidirectional Unicode text that may be interpreted or compiled differently than what appears below. To review, open the file in an editor that reveals hidden Unicode characters.
Learn more about bidirectional Unicode characters
spazcoin
force-pushed
the
fix/expandMaxJumpModelRates
branch
from
2e23d73
to
96a2715
Compare
Recently all USDT on Polkadot was borrowed, leading to Moonwell USDT borrow rates of 192% and Interlay $492k of USDT max borrowed, resulting in Interlay USDT borrow rate pegged at 45-50%. The negative thing was that there was no remaining USDT lending liquidity for lenders to withdraw their capital. Interlay referenda 96 was approved to adjust the USDT/USDC lending params to set the jump rate to 20% and the full rate to 150% with optimal utilization of 80%. After community and team discussion, this solution was agreed to use the higher full rate to push lending back down towards the optimal lending utilization. https://interlay.subsquare.io/democracy/referenda/96 Unfortunately the referenda failed to execute because the 150% proposed full rate exceeded the hard-coded max value of 50% for the full rate. https://interlay.subscan.io/block/4905046?tab=event&event=4905046-0 In this commit I recommend: * leave 10% as max base rate * increase "jump rate" hardcoded max from 30% to 100%. We were already considering 20-30% for USDT. * increase "full rate" from 50% to 500%. I definitely support having limits since people might submit a value with wrong number of zeros accidentally. But let's place the limits higher than any "reasonable" value that we might set in governance. I can see us potentially having a market with jump rate 50% and full rate 300%.
spazcoin
force-pushed
the
fix/expandMaxJumpModelRates
branch
from
96a2715
to
adbb2c5
Compare
|
Thanks! It shouldn't be a problem, but I'll add some basic tests in a separate pr |
sander2
approved these changes
Sep 3, 2024
Sign up for free
to join this conversation on GitHub.
Already have an account?
Sign in to comment
Add this suggestion to a batch that can be applied as a single commit.
This suggestion is invalid because no changes were made to the code.
Suggestions cannot be applied while the pull request is closed.
Suggestions cannot be applied while viewing a subset of changes.
Only one suggestion per line can be applied in a batch.
Add this suggestion to a batch that can be applied as a single commit.
Applying suggestions on deleted lines is not supported.
You must change the existing code in this line in order to create a valid suggestion.
Outdated suggestions cannot be applied.
This suggestion has been applied or marked resolved.
Suggestions cannot be applied from pending reviews.
Suggestions cannot be applied on multi-line comments.
Suggestions cannot be applied while the pull request is queued to merge.
Suggestion cannot be applied right now. Please check back later.
Recently all USDT on Polkadot was borrowed, leading to Moonwell USDT borrow rates of 192% and Interlay $492k of USDT max borrowed, resulting in Interlay USDT borrow rate pegged at 45-50%. The negative thing was that there was no remaining USDT lending liquidity for lenders to withdraw their capital.
Interlay referenda 96 was approved to adjust the USDT/USDC lending params to set the jump rate to 20% and the full rate to 150% with optimal utilization of 80%. After community and team discussion, this solution was agreed to use the higher full rate to push lending back down towards the optimal lending utilization.
https://interlay.subsquare.io/democracy/referenda/96
Unfortunately the referenda failed to execute because the 150% proposed full rate exceeded the hard-coded max value of 50% for the full rate.
https://interlay.subscan.io/block/4905046?tab=event&event=4905046-0
In this commit I recommend:
I definitely support having limits since people might submit a value with wrong number of zeros accidentally. But let's place the limits higher than any "reasonable" value that we might set in governance. I can see us potentially having a market with jump rate 50% and full rate 300%.