BIP#39: Lower Base Rate

BIP#39
Title: **** Lower Base Rate****
Idea(BRC): Discord
BIP by: Hill | BendDAO.xyz
Created: 2023-07-02
Status: Community Review
BIP Editor: Hill | BendDAO.xyz

Background

The current interest rate curves were updated on 2022-09-19 for Ethereum Merge. The base lending interest rate has increased from 10% to 20% to maintain competitiveness in ETH supply on BendDAO. Current Rase Rate: 20%
More details: Interest Rate Model - Portal

Motivation

Following the evolving market dynamics and considering the goal of maintaining BendDAO’s competitive positioning in NFT-Fi, this proposal aims to lower the base rate of the ETH Interest Rate Curve.

  • Competitive Rates: Lowering the base rate will provide more competitive borrowing rates, potentially attracting more borrowers to BendDAO.
  • Increased Liquidity: By attracting more borrowers, BendDAO TVL will increase, enhancing overall health and stability.
  • More profit-sharing: By attracting more borrowers, veBEND holders will earn more protocol lending revenues.

Specification

Current Base Rate: 20%
Proposed New Base Rate: 15%

  • Yes, lower the base rate
  • No, keep the current base rate

0 voters

1 Like

Looks like we have 10 votes, can move it to next step for snapshot, LFG.