QIP234: Adjust Interest Rates on AERO Vault

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network: Base author: Benjamin.lens implementor: QiDao Guardians implementation-date: Post-approval created: 2024-04-18

Summary

This proposal aims to make AERO vaults at QiDao a competitive and attractive option for AERO holders to source liquidity.

Abstract

The change proposed is to lower the interest rate on AERO vaults from 25% to 10%. No changes are requested for the collateralization ratio.

Motivation

As Chainlink has created an AERO feed, many lending markets will start integrating AERO as collateral. QiDao has to capitalize on its first mover advantage by establishing itself as the place to borrow with AERO. The only lending market that is currently planning to launch AERO as collateral is Sonne, with 30% LTV (333% min CDR).

Specification

Rationale

Lowering the interest rate to 10% will attract more borrowers to QiDao vaults. Community feedback so far has been that the current 25% IR is much to high.

Technical Specification

See parameter change below.

Configurable Values

Call setInterestRate function with "1000" value.