Proposal Idea: Change APY calculator when there is no liquidity to withdraw

Originally submitted by castiel

Change APY calculator when there is no liquidity to withdraw.

It doesn’t make sense to put money in the protocol and not be able to withdraw whenever you want.

Today we have the example of USDT, whoever supply money cannot withdraw because it is all borrowed. And there is no USDT to borrow for new users.

Solution: dramatically increase the APY in favor of suppliers at the expense of borrowers when exceeding, for example, 10 or 5% of reserve.

This way we bring more suppliers to balance.

Also, this propose will increase liquidity of Venus Protocol.

Please take a look at https://app.aave.com/, https://app.cream.finance/, https://homora.alphafinance.io/earn it work like this already.

7 Likes

can you provide an equation? which is the present equation? This idea has in general very good merit.

Yeh, this associated with the Interest Model.

yes the interest model should be reveived and rectified