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SamUchiha proposed a new interest rate model for Aave, the Aave Interest Rate Uber Model v0.1, aiming to address issues with the current model and introducing features like a base rate insurance fund pool, Productive and Lazy token pools, and VIP user treatment. Despite concerns about the complexity of implementing a new model, the discussion suggests that the current Aave model could be improved, and the proposed model offers a potential solution, requiring further discussion and consideration.
The discussion primarily revolves around a new interest rate model for Aave proposed by SamUchiha, known as the Aave Interest Rate Uber Model v0.1. This model aims to address several issues with the current model, such as heavy reliance on token pool utilization, equal treatment of stable coins and Gov tokens, problematic token distribution, lack of incentives for larger liquidity providers (LPs) and borrowers, and the inability of aToken holders to influence interest rates1.
The proposed model introduces several key features, including a base rate insurance fund pool, Productive and Lazy token pools, VIP user treatment for LPs and borrowers, and interest rate changes based on voting results of aToken and AAVE token holders. It also suggests halting all token distribution and saving it for future distribution to stable coin pools when their earning rate falls below the base rate1.
SamUchiha also proposed a system to connect aToken holders' opinions about interest rates to Aave governance, including a forum for discussions, a Snapshot for voting, and a multisig wallet for fund storage and AAVE vote delegation1. He also suggested that Aave should adopt the EIP-2535 standard to actively change interest rates and compete with other protocols3.
However, Eboado highlighted the complexity of implementing a new model and expressed skepticism about the potential impact of applying the same rate as stablecoins to gas tokens on liquidations5. Despite these concerns, SamUchiha emphasized the need for improvements in the interest rate model of Aave and suggested that working on the interest rate should be a priority6.
In conclusion, the discussion suggests that while the current interest rate model of Aave is performing satisfactorily, there is room for improvement. The proposed Aave Interest Rate Uber Model v0.1 offers a potential solution, but its implementation and impact require further discussion and consideration.
Posted 2 years ago
Last reply 2 years ago
Summary updated 2 months ago
Last updated 09/12 13:53