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Pauljlei proposed adjustments to interest rate parameters and reserve factors for USDT and TUSD stablecoins on Aave's Ethereum V2 market to mitigate 100% pool utilization risk and build reserves. The community was invited to provide feedback, with a Snapshot vote scheduled in two weeks, and MarcZeller expressed support for the proposal.
The discussion primarily revolved around the proposal by Pauljlei to adjust interest rate parameters and reserve factors for USDT and TUSD stablecoins on Aave's Ethereum V2 market. The aim of these adjustments is to mitigate the risk of 100% utilization in a pool and build reserves via protocol revenue to cover future insolvencies or expenses. The proposal was based on the analysis of the latest market data and the high utilization of USDT and TUSD.
Concerns were raised about USDT due to increased scrutiny on reserves following fallout from FTX. To protect suppliers and encourage borrowers to pay back their debts quicker, Pauljlei recommended moving the optimal utilization from 0.9 to 0.8 and increasing slope 2 from 0.6 to 0.75. TUSD was identified as a token that experiences delays in returning to optimal utilization. To encourage additional supply and make recursive borrowing profitable when surpassing the optimal utilization point, Pauljlei recommended decreasing reserve factors from 0.1 to 0.05 and increasing slope 2 from 0.75 to 1.0.
The community was invited to provide feedback on the proposed changes, with a Snapshot vote scheduled to take place in approximately 2 weeks. Pauljlei also provided an informational post about the services provided by Gauntlet, emphasizing that the information provided should not be relied upon for investment purposes. The Snapshot vote was published and voting was set to begin in 24 hours. MarcZeller responded positively to the proposal, stating that the Aci is supportive and will cast a YAE vote. The discussion concluded with Pauljlei stating that they plan to move forward with AIP early the following week unless the community voices otherwise.
Posted a year ago
Last reply 10 months ago
Summary updated 2 months ago
Last updated 09/12 13:52