Update RAI & FRAX Parameters in Pool 9

Summary

We propose the following parameter updates for RAI and FRAX in Pool 9: the collateral factors should be set to 80% and the interest rate models should be changed so that the pool targets a 16% borrow rate when utilization is 80%.

After testing the 16% borrow rate at 80% utilization for 2-4 weeks, we would like to further decrease the rate to 11% @ 80% utilization.

If these parameters are voted in, all governance for the pool will subsequently be removed.

Background

The FRAX/RAI/USDC/DAI pool has been online for months and is one of the top 5 pools on Fuse. In order to encourage further growth and lower borrow rates for RAI and FRAX, we propose that the RAI & FRAX collateral factors and the interest rate models should be updated.

Abstract

This proposal presents new parameters for the RAI and FRAX stable assets in Fuse Pool 9. These new parameters are meant to lower borrow rates for both assets and attract more capital. If the parameters are voted in, all governance for the pool will be removed.

Motivation

This proposal can optimize RAI’s and FRAX’s parameters in Fuse Pool 9 and attract even more capital, thus growing Fuse’s TVL.

Vote Details

FOR: Change the parameters for RAI & FRAX in Fuse Pool 9 and allow Frax and Reflexer to remove governance from the pool.

AGAINST: do nothing.

Forum post for discussion: https://forums.rari.capital/d/132-update-rai-frax-parameters-in-pool-9