BIP#39: Lower Base Rate

Summary

Following the evolving market dynamics and considering the goal of maintaining BendDAO’s competitive positioning in NFT-Fi, this proposal aims to lower the base rate of the ETH Interest Rate Curve from 20% to 15%.

• Competitive Rates: Lowering the base rate will provide more competitive borrowing rates, potentially attracting more borrowers to BendDAO.
• Increased Liquidity: By attracting more borrowers, BendDAO TVL will increase, enhancing overall health and stability.
• More profit-sharing: By attracting more borrowers, veBEND holders will earn more protocol lending revenues.

Background

According to the rules of community governance:

• Phase 1: Idea or Draft
  • Minimum number of supports: 10 - Pass
  • Discord Idea: https://discord.com/channels/897709643948761148/1125056372690665564
• Phase 2: BIP
  • Minimum number of voters: 10 - Pass
  • BIP#39: https://governance.benddao.xyz/t/bip-39-lower-base-rate/501
• Phase 3: On-chain voting
  • Voting Quorum: Approximately 49M veBEND (10% of the total supply)
  • Pass Rate: Over 80% Approve.
  • The voting will last for 3 days.

The current interest rate curves were updated on 2022-09-19 for Ethereum Merge. The base lending interest rate has increased from 10% to 20% to maintain competitiveness in ETH supply on BendDAO. Current Rase Rate: 20%

More details: Interest Rate Model - Portal

Current Base Rate: 20%

Proposed New Base Rate: 15%