Adjustment of USDC and USDT Market Rates on Fluid

Governance
1

Summary

This proposal aims to adjust the market rates for USDC and USDT on the Fluid platform, reflecting the current market conditions and optimizing liquidity utilization.

Proposal

The Fluid team proposes adjustments to the USDC and USDT market rates to align with evolving market conditions and ensure a competitive and efficient liquidity environment.

Current Rates:

  • Utilization 0%: Rate 0%
  • Utilization 80%: Rate 12%
  • Utilization 93%: Rate 18%
  • Utilization 100%: Rate 33.34%

Proposed Rate Curve Adjustment:

  • Utilization 0%: Rate 0%
  • Utilization 80%: Rate 10%
  • Utilization 93%: Rate 15%
  • Utilization 100%: Rate 25%

Reason

To ensure the Fluid platform remains competitive and attractive for both lenders and borrowers, adjustments to the market rates for USDC and USDT are necessary. The proposed changes are inspired by proposed rate changes made on MakerDAO here. These changes promote better utilization of the protocol liquidity.

Result

This proposal updates the USDC and USDT rate curves on Fluid to better match current market conditions.

Proposal on Atlas

Status: Passed :white_check_mark:

IGP#15 - Integrate Ethena’s sUSDe into Fluid

2 Likes
3

To clarify, this is making borrowing cheaper, is that correct? Considering Maker is increasing the rate (stability fee), wouldn’t the proposed rate be higher rather than lower?

4

Hey @Doo_StableLab the link above was incorrect, the proposed changes lower the borrowing rate they are being proposed here:

2 Likes