Add factors to reduce unlocked supplies APR

Proposal ID
CiqtsVfsCjgRXYKswAdvAyTSNo56gvCWBCqLqYknS3p

Introduce a new factor, UnlockedSupplyAPRFactor, which will adjust unlocked supply APR by

new unlocked supply APR = actual unlocked supply APR * factor / 100.

Developer team must implement a modification in the smart contract code in order to apply this equation and reduce borrowing APR accordingly, in order to reflect reduction of total supply interests.

Set initial value of this factor to 20 for all assets.

Transaction Payload

{
  "type": 12,
  "version": 2,
  "data": [
    {
      "key": "34N9YcEETLWn93qYQ64EsP1x89tSruJU44RrEMSXXEPJ_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 20
    },
    {
      "key": "474jTeYx2r2Va35794tCScAXWJG9hU2HcgxzMowaZUnu_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 100
    },
    {
      "key": "6XtHjpXbs9RRJP2Sr9GUyVqzACcby9TkThHXnjVC5CDJ_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 20
    },
    {
      "key": "8LQW8f7P5d5PZM7GtZEBgaqRPGSzS3DfPuiXrURJ4AJS_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 100
    },
    {
      "key": "DUk2YTxhRoAqMJLus4G2b3fR8hMHVh6eiyFx5r29VR6t_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 100
    },
    {
      "key": "DG2xFkPdDwKUoBkzGAhQtLpSGzfXLiCYPEzeKH2Ad24p_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 20
    },
    {
      "key": "WAVES_UnlockedSupplyAPRFactor",
      "type": "integer",
      "value": 20
    }
  ],
  "senderPublicKey": "3gQ8QUfoGQW6YVuhUv3zuqsbmxbV5F2FAuDXJqVKD6C9",
  "fee": 100000000,
  "feeAssetId": "WAVES",
  "timestamp": 1655907720000
}

Martin, This proposal is not good.

1 Like

On math, if locked stay with 43.33 and not locked is 8.66, where go the 34,67% of unlocked ones?

With different interest rates, how the LP tokens will be valued?

Vires is about lending not about staking by locking funds.
The interest come from borrow, with low difference between lock and unlocked user will decide based use collateral in some investment making interest APY, instead just lock and get best APY reducing APY generation on system.
Now the low difference between lock and unlocked exists because borrow and import LP are suspended and vires got a large amount 100M USDT and more than 65M USDC, in a normal situation probably owners of this locked could be use borrow collateral against locked APY, thing probably will not happen if lock have biggest APY, consequence is less borrow reducing APY for locked and unlocked users, because lending is about borrow not about stake

Benefits:
-Incentivizes locking and rewards people committed to Vires/Waves - Only benefit if have huge usage and borrow and imports are locked, if else have no benefit
-Easier for Sasha to repay with less new debt accruing every day - this is benefit for who exactly, and when will not be sasha owner of debt, how know if is this the intention of account owner, is subjetive understanding
-Less of a backlog for gVires token payouts - casualness
-Helps utilization drop below 100% and restore confidence in Vires protocol - based on 100 but usage drop bellow 20 or 10, caused by excessive lock, is good for lending system and user interest or convert everything in a stake system? confidence comes from APY borrow makes, not by extra capacity stake token in lending system

Again lowering apy while it’s impossible to withdraw… This is getting borderline criminal

2 Likes

-Low unlocked APY possibly discourages new deposits (not that there are many now)

new deposits can be made with locked supplies, even as short as 3 month periods.

-If Sasha doesn’t repay, it will take longer for his account to reach 0% health for liquidation

Sasha is repaying at the pace enough not to generate too big depeg pressure on USDN. In additional, less accumulation of interest rates makes less competition for withdraw. So it not only easies debt payment but also competition for withdraw.

On the contrary, if less debt is accumulated and more the locked supplies are encouraged, there will be less competition for withdraw, so there will be more available to be withdrawn. People that want to withdraw will be able to do it faster.

The low difference come from the fact that many people locked initially due to an initial high difference. This different does not exist anymore.

The interest come from borrowing, and locked supplies would receive most of it.