# Update interest rate configs for Bridge USDC across multiple markets (Arbitrum)

**URL:** <https://gov.silo.finance/t/update-interest-rate-configs-for-bridge-usdc-across-multiple-markets-arbitrum/389>\
**Category:** Arbitrum Executive Proposals\
**Created:** [July 6, 2023, 7:30am UTC](https://gov.silo.finance/t/update-interest-rate-configs-for-bridge-usdc-across-multiple-markets-arbitrum/389 "2023-07-06T07:30:12Z")\
**Posts on this page:** 1\
**Page:** 1

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**Author:** ![ayham.eth](https://yyz2.discourse-cdn.com/flex032/user_avatar/gov.silo.finance/ayham.eth/32/8_2.png) [@ayham.eth](https://gov.silo.finance/u/ayham.eth)\
**Post date:** [July 6, 2023, 7:30am UTC](https://gov.silo.finance/t/update-interest-rate-configs-for-bridge-usdc-across-multiple-markets-arbitrum/389/1 "2023-07-06T07:30:12Z")

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## 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

 ![image](https://canada1.discourse-cdn.com/flex032/uploads/silo/original/1X/e9a154df9f3f77fab12ed160b496f45ffd9a7386.png)

stableHighCapV2: Moderate Interest Rate curve

 ![image](https://canada1.discourse-cdn.com/flex032/uploads/silo/original/1X/75010fddf3e40976bf9f51c48e0798ce3e09b7e9.png)

volatileOpt80Base15: Aggressive Interest Rate curve

 ![image](https://canada1.discourse-cdn.com/flex032/uploads/silo/original/1X/0836ba4e27d0b1721f7f5d10cd7abd1cec212ad6.png)

## 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 |