VIP-032 Revert maximum Borrow APR of BTC back to 80%

Proposal ID

BTC maximum Borrow APR was reduced to 40% “temporarily” in VIP-004.
Now, BTC utilization has kept high.
I propose to revert BTC’s maximum Borrow APR back to 80% in order to attract liquidity providers.

Transaction Payload

  "type": 12,
  "version": 2,
  "data": [
      "key": "8LQW8f7P5d5PZM7GtZEBgaqRPGSzS3DfPuiXrURJ4AJS_DPoint",
      "type": "integer",
      "value": 800
  "senderPublicKey": "3gQ8QUfoGQW6YVuhUv3zuqsbmxbV5F2FAuDXJqVKD6C9",
  "fee": 50000000,
  "feeAssetId": "WAVES",
  "timestamp": 1672820000000

Can someone explain what benefit this change will provide? Attracting new capital by offering a high APY for lenders is a double-edged sword. In trust minimized situations like the state we are at in Vires, a BTC lender will think whether the same faith awaits them such as coerced conversion to USDN when BTC just like USDT/C ends up with a bad debt. Secondly which borrower in their right mind would borrow BTC at this high rate of interest when they can do it more cheaply on protocols like AAVE’s Polygon and Avalanche chains?

I have documented these in a public blog-post a week ago. Here is the link for a comprehensive analysis.

Best regards and a happy new year…