[EXAIP-17] Interest Rate Model Parameters Update for USDC.e

• Proposal ID: EXAIP-17
• Proposer: Exactly Core Team
• Date: January 9, 2025

Summary

This proposal introduces an update to the Exactly Protocol's Interest Rate Model (EXAIP-08) parameters for the USDC.e market. The successful integration of the USDC native market (EXAIP-11) has caused a gradual decline in liquidity within the bridged USDC.e market, prompting this adjustment.

Technical Implementation

The proposed changes are intended to discourage market manipulations in a market with low liquidity, preventing other users' normal flow of withdrawals.

By adjusting the Interest Rate Model parameters, this proposal seeks to deter manipulative behavior while maintaining the functionality of the bridged USDC.e market during the migration to native USDC.

New curve parameters USDC.e

Conclusion

EXAIP-17 updates the Interest Rate Model parameters for the USDC.e market to address the challenges its declining liquidity poses. These adjustments ensure fair borrowing conditions while supporting the ongoing migration to the native USDC market.