Changes to markets in Silo Llama (updated)

Proposal Discussion
1

Change 1: Change crvUSD IRM parameters

Reason: We propose slight changes to slow APR growth/decrease when utilization is outside the optimal region to give borrowers ample time to adjust positions without paying excessive rates. The change will help retain borrowers.

Suggested change

stableHighCapV3: {

uopt: 800000000000000000n,

ucrit: 900000000000000000n,

ulow: 600000000000000000n,

ki: 110103,

kcrit: 237823439878,

klow: 26424826653,

klin: 3170979198,

beta: 11574074074074,

ri: 0,

Tcrit: 0,

},

What does the change do?

  • It slows APR growth when utilization is outside the optimal region (above 80%.)

  • It slows down the APR decrease when utilization goes down from a point above optimal to a point below.

Comparison

Change 2: Change CRV IRM parameters

Reason: The Change moves the max opt point (uopt) to 65%, effectively resulting in stable APRs when utilization (U) is in the region 1% to 65% rather than 1% to 50%. The change will help increase borrows for CRV and retain current borrowers.

Suggested change

volatileOpt65Base9p1: {

uopt: 650000000000000000n,

ucrit: 900000000000000000n,

ulow: 300000000000000000n,

ki: 146805,

kcrit: 317097919838,

klow: 105699306613,

klin: 4439370878,

beta: 69444444444444,

ri: 0,

Tcrit: 0,

},

What does the change do?

  • APRs start growing when utilization is above 65% rather than 50%, which is in effect today.

  • APRs start declining when utilization moves down from a point above 65% to a point below.

In the event we hear no objection, we will move to execution. As always, we will share unexecuted transactions with the community for transparency and execute within 24-48 hours of posting the transactions publicly.

Change 3: Update crvUSD price provider
The new price provider (oracle) reads the price of crvUSD from the Curve crvUSD-USDC pool instead of crvUSD-USDT pool.

Execution:
Queuing transaction to affect change 1 and 3. The tx will be executed by Feb. 23, 2024.

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