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Extra FinanceExtra Financeby0x182FBAE99347223D3F22B27c0612466e381DfA770x182F…fA77

Increase the OVN/USD+ LP borrowing limit and seek capital directly from Overnight

Voting ended almost 2 years agoSucceeded

The demand for the OVN/USD+ pool is far greater than the current supply.

Whenever someone decides to lend a bit of USD+ it gets borrowed within 5 minutes and the utilization rate is always around the 95% limit. There have been multiple people who openly said that they want to borrow larger amounts --> 200K, 550K and even 1 million. Given this fact and the fact that many of us DeFi users are glued to our seats and phones, refreshing the lending page on Extra to see if there is new capital to borrow like Eagles, I suggest increasing the credit on the pool to at least 2 million. In a perfect world, it could even be increased to 3 million.

Furthermore, I want to propose that Extra Fi seeks direct capital from Overnight. Why is this important and smart? Overnight generates yields on their stables from Delta-Neutral strategies and USD+ on Base offers around 15-30% APY at the moment. Each USD+ coin is backed by USDC. If Extra Fi deposits let's say 1 million USDC for USD+, Overnight will have more capital to work with, Extra can make above average returns on stables from the interest from the Farmers --> 50%+ and on top of that when the TVL increases in the Farming pool Extra makes more money from the 5% performance fee. The borrowers are happy, the lenders are happy and both protocols are able to thrive.

To summarise:

  1. Increase the cap to at least 2 million to satisfy the demand
  2. Seek direct capital from Overnight to satisfy the borrowing demand and make money for everyone involved --> above average returns on stables for Extra and lenders due to interest and the 5% performance fee due to a greater TVL

Off-Chain Vote

Increase the Cap to 2 million
1.73M veEXTRA51.5%
Do not increase the Cap
7.29K veEXTRA0.2%
Seek 1 million USD+ from OVN
1.54M veEXTRA45.7%
Do not seek 1 million from OVN
88.03K veEXTRA2.6%
Quorum:6730%
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Timeline

Apr 03, 2024Proposal created
Apr 04, 2024Proposal vote started
Apr 07, 2024Proposal vote ended
Apr 07, 2024Proposal updated