According to ChainCatcher news, DeFi lending protocol OpenLeverage has launched a vote on the OLIP-10 proposal, which aims to improve its existing interest rate model and enhance its ability to respond to market changes. The proposal says that due to recent increases in market volatility, the current model, which increases the maximum annualized rate by 20%, is no longer sufficient to keep up with market changes. The new proposal adjusts the setting of the maximum interest rate to more flexibly reflect fund utilization. When the utilization of each fund pool reaches the interest rate model threshold, the maximum borrowing rate will increase by 20% every 12 hours. This process continues up to a maximum of 2000%. On the contrary, when it is below the critical value, the maximum rate will be reduced by 30% every 12 hours until it reaches the predefined minimum value.
It is reported that the new model can ensure that interest rates respond to utilization changes in real time and adjust the interest rate curve according to market conditions. The expected benefits include: market-responsive interest rates, interest rates can be adjusted quickly to respond to utilization changes, accurately reflecting market fluctuations; balancing supply and demand, and dynamically adjusting strategies to maintain the balance of the lending pool, thereby maintaining market liquidity. After the proposal is passed, it will be tested and gradually implemented for a period of time to minimize potential risks.
