Planning to move this proposal on chain in the next week unless there are any objections!
Update on market status and impact on proposed changes:
While total borrowed remains at the 90,750 COMP borrow cap, utilization has increased to 15.8% due to recent withdraws. This yields a current borrow rate of 7.18% and supply rate of 0.82%.
Assuming constant utilization, the new interest rate model would set a borrow rate of 11.32% and supply rate of 1.34%. If borrowings increased to reach the new cap without any change in supply, this would lead to utilization of 25.8%, borrow rate of 15.32%, and supply rate of 2.96%.
Given current high yields for LPing COMP on Balancer/Aura, it seems possible that borrowing may hit the new cap of 150,000 COMP despite higher borrow rates.
On Chain Actions:
- Comptroller > _setMarketBorrowCaps > cCOMP > 150,000E18
- cCOMP Interest Rate Model > updateJumpRateModel > (0.04E18, 0.2E18, 2E18, 0.5E18)
Note that baseRatePerYear, multiplierPerYear and jumpMultiplierPerYear values above have been normalized to account for the 15 second block time hard coded into the interest rate model contract (versus current 12 second block time in Ethereum PoS). Values were multiplied by 0.8, which accounts for the difference in block times and will result in the intended APRs being achieved in the rate model contract.