[LIP-13] Interest Change Pilot on USDC.e

We would like to test the impact on TVL and fee generation of a change to the interest rate model. Currently Lodestar offers 2 USDC markets. One for the native USDC and one for birdged USDC. These markets currently have the same interest rate model and market parameters.

This proposal seeks to change the interest rate model (IRM) of the bridged USDC (USDC.e) market to the following configuration: Move kink from 80% to 90%, with market scaling such that the borrow APY is 5.5% at 90% utilization compared to the current value of 10.5%.

The idea behind this change is it should be cheaper to borrow funds at all utilization values along the IRM curve, leading to more loans. Even though each loan will be paying less interest, if more USDC.e is lent out, this should overcome and surpass the fees lost to cheaper borrowing rates, leading to overall higher fees to LODE holders. With a higher market utilization, this should also bolster the market forces that incentivise liquidity providers to provide USDC.e liquity to the market. While some of this is assumptions about how the behavior of users will change in response to the new IRM, this pilot seeks to determine the efficacy of this strategy across the entire app. This proposal will test this IRM change on USDC.e only at first.

Voting Instructions:

Vote Yes if you agree to:

Deploy a new interest rate model for the bridged USDC market with a kink at 90% and scaling factors that result in an 5.5% borrow APY at 90% utilization.

Vote No if you are against it.