BIP#46: Adjust USDT Pool’s Parameters

Background

This proposal outlines the intended adjustments to the USDT pool parameters on BendDAO. By offering more attractive rates, the goal is to increase the BendDAO user base, enhance liquidity, and foster sustainable growth of the protocol.

Summary

These adjustments aim to create a more appealing, sustainable, and user-friendly borrowing environment that can adapt to market changes and user behavior, thereby ensuring BendDAO's position as a leader in the NFTFi space.

Specification & Motivation

Responding to evolving market dynamics and aiming to maintain BendDAO's competitive edge in the NFTFi sector, this proposal suggests adjustments:

• baseRate: From 10% to 7% Increased Attractiveness for Borrowers: A lower base rate makes borrowing more affordable, attracting a larger user base looking to leverage their NFTs.
• slope1: From 16% to 8% This change means that interest rates will increase more gradually as utilization rises, avoiding sharp rate hikes that could deter borrowing.
• slope2: From 200% to 100% This adjustment can balance the need to manage liquidity risk with the goal of not discouraging borrowing.
• Decrease the Protocol Admin Fee by 10% Competitive Rates for USDT Suppliers: In an effort to remain competitive and attractive to USDT suppliers, the proposal recommends reducing the protocol admin fee from the current 30% to 20%.

On-chain voting

Voting Quorum: Approximately 42M veBEND (10% of the total supply)

Pass Rate: Over 80% Approve.

The voting will last for 3 days.