I posted this in the Governance group on telegram as well, but figured I’d share it here too, sorry in advance if this isn’t done correctly!
So looking on the community board, twitter, and telegram there’s a bunch of people that deem the venus borrow APY of 233% as being concerningly high for only 94 wallets
My idea is to utilize the addition from VIP-11 to add the JumpRateModel for XVS borrowing as well
So basically, if 80% of the borrow for xvs is used (or lower if we have control of that), tack on interest for an addition 220ish %, that way the people that are borrowing are only making about 13% apy which would better match the supply APY and people won’t think only 94 wallets are getting an unfair advantage
**If this was implemented, I’d probably recommend putting a message box or something when the user attempts to borrow stating that this is what’s happening and do to it at their own risk since they will need to remember to properly portion their rewards to pay back the loan
I’m not sure how feasible this is, but would love to hear your thoughts!
Thanks for your time