TL;DR
If the proposal meets no objections, we will affect the following changes:
-
Change interest rate configs for USDC from stableHighCap to stableHighCapV2 in the following markets: $ARB; DPX; OHM; MAGIC; wstETH; GMX; wBTC; rETH.
Image 2 displays APRs at different utilization points. -
Update interest rate configs for USDC from stableHighCap to volatileOpt80Base15 in the following markets: GNS; rDPX; JONES; PREMIA; UMAMI; UNI; CRV.
Image 3 displays APRs at different utilization points.
Why
- Higher borrow APRs for USDC will likely stimulate the growth of our biggest markets (ARB, OHM, etc.)
- Risky assets should have steeper interest rates congruent with the risk USDC depositors take on.
- For assets characterized by low AMM liquidity, having steep rates will likely discourage large borrowing beyond a certain point, protecting the solvency of those markets.
How IR curves compare
- stableHighCap sets conservative interest rates (APRs) - Image 1
- stableHighCapV2 sets moderate interest rates (APRs) - Image 2
- volatileOpt80Base15 sets aggressive interest rates (APRs) - Image 3
stableHighCap: Conservative Interest Rate curve
stableHighCapV2: Moderate Interest Rate curve
volatileOpt80Base15: Aggressive Interest Rate curve
Suggested changes
| Market | Curent USDC IRM Type | New USDC IRM Type |
|---|---|---|
| ARB | stableHighCap | stableHighCapV2 |
| DPX | stableHighCap | stableHighCapV2 |
| OHM | stableHighCap | stableHighCapV2 |
| MAGIC | stableHighCap | stableHighCapV2 |
| wstETH | stableHighCap | stableHighCapV2 |
| GMX | stableHighCap | stableHighCapV2 |
| GNS | stableHighCap | volatileOpt80Base15 |
| rDPX | stableHighCap | volatileOpt80Base15 |
| JONES | stableHighCap | volatileOpt80Base15 |
| PREMIA | stableHighCap | volatileOpt80Base15 |
| UMAMI | stableHighCap | volatileOpt80Base15 |
| UNI | stableHighCap | stableHighCapV2 |
| rETH | stableHighCap | stableHighCapV2 |
| CRV | stableHighCap | volatileOpt80Base15 |
| wBTC | stableHighCap | stableHighCapV2 |