After last time liquidation crisis,
Interest Base Rate has been adjusted from 10% to 20% in the name of helping more ETH depositors earn more interest and prompt more NFT holders to repay ETH.
In my opinion,
A suitable liquidation threshold，80% now, which can cover a 20% floor price drop during the 24 hours liquidation auctions, is the most important and enough to protect the safety of the Protocol.
Interest should be decided by market, supply and demand, not by the Protocol.
The current lending and borrowing rates at Venus are 1.04% and 2.18% respectively now,
while 4.91% and 26.52% at Benddao.
Even the borrowers pay as high as a 20% plus interest,
the lenders will not eat the whole pie as more eth will come and lower the Utilization rate and thus the lending rates.
The income of the lenders is decided by market, while the income of the Protocol is decided by the borrowing volume and a share cut of rates difference.
If the Interest Base Rate will be reversed to 10%, there will be more borrow and more income for the Protocol.