CoinVoice recently learned that on August 3, the 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 responsiveness to market changes. The proposal states that due to the recent increase in market volatility, the current model has increased the maximum annualized interest rate by 20%, which is no longer sufficient to keep up with market changes. The new proposal adjusts the setting of the maximum interest rate to make it more flexible to reflect fund utilization. When the utilization rate reaches the "inflection point" set in the interest rate model, the maximum borrowing rate will increase by 20% every 12 hours until it reaches the maximum allowed interest rate of 2000%, and will remain stable thereafter. Conversely, if it is below the "inflection point", the maximum interest rate will decrease by 30% every 12 hours until it reaches the predefined minimum maximum interest rate, and then remain stable.
The new model ensures that interest rates respond to utilization changes in real time and adjust the interest rate curve according to market conditions. Expected benefits include: market-responsive interest rates, interest rates can be quickly adjusted 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. [Original link]
