Summary
A proposal to update IR parameters for TUSDOLD and TRXOLD as a continuation of their deprecation from the Venus markets.
Motivation
This proposal aims to continue the deprecation of TUSDOLD and TRXOLD from the Venus markets. The plan involves adjusting the Interest Rate curves to further incentivize borrowers to repay their loans involving these tokens.
Following these updates, we will continue to monitor the assets and the impact of these parameter updates on their usage. Based on the observed effects and future market conditions, we will continue to supply recommendations as necessary.
TUSDOLD
The current total supply is 598.65K, and the total borrow is 626.99K, setting the utilization of TUSDOLD at 104%, with the borrow APY at 92.59%.
In order to expedite repayments of TUSDOLD loans, we propose moving the kink from 80% to 40%. Given the current utilization rates, this modification is anticipated to drive the borrow APY to approximately 151%, providing a stronger incentive for users to repay their loans.
Following are graphs representing the current IR settings (displayed on the left) compared to our recommended modifications (displayed on the right).
TRXOLD
The current total supply is 963.59K, and the total borrow is 142.05K, setting the utilization of TRXDOLD at 14%, with the borrow APY at 18.16%.
In order to expedite repayments of TRXOLD loans, we propose moving the kink from 60% to 1%. Given the current utilization rates, this modification is anticipated to drive the borrow APY to approximately 42%, providing a stronger incentive for users to repay their loans.
Following are graphs representing the current IR settings (displayed on the left) compared to our recommended modifications (displayed on the right).
TUSD
The current supply and borrow cap for TUSD are at 81% and 100%, respectively, with the CF still set at 0%, meaning it is not enabled to be used as collateral.
As we persist in observing the market dynamics and the effects of the contract swap, we do not suggest any alterations to these parameters within the scope of this proposal. This decision is based on our commitment to ensure stability and sustainability.
Recommendations
| Asset | Current Kink | New Kink |
|---|---|---|
| TUSDOLD | 0.8 | 0.4 |
| TRXOLD | 0.6 | 0.01 |