Optimizing wBTC Market Parameters

Dear Paribians!,

intro:
After conducting an extensive analysis of market dynamics and outcomes, the Paribus team is thrilled to introduce a groundbreaking proposal aimed at setting new market parameters for the wBTC Market on our platform. This initiative is a significant step towards differentiating ourselves from competitors and creating a more dynamic and responsive ecosystem.

Challenges and Considerations:

Setting appropriate market parameters involves navigating the complexities of supply and borrow rates, total deposits, total borrows, and total reserves. Our proposal strategically adjusts these parameters, initially focusing on lowering the borrow Annual Percentage Rate (APR) to stimulate borrowing activity. While this adjustment may temporarily reduce earning APY, it is anticipated to normalize rates over time as borrowing activity increases.

Current wBTC Parameters:

Parameters Values
Base Rate Per Block 0
Multiplier Per Block 72317351598
Jump Multiplier Per Block 856164383561
Kink 750000000000000000
Reserve Factor 200000000000000000

New wBTC Parameters:

Parameters Values
Base Rate Per Block 0
Multiplier Per Block 13217351598
Jump Multiplier Per Block 356164383562
Kink 800000000000000000
Reserve Factor 200000000000000000

Here’s the full table for the utilization rate parameters for wBTC:

Utilization Rate Borrow Rate (Annual) Supply Rate (Annual)
0% 0.00% 0.00%
1% 0.03% 0.00%
2% 0.07% 0.00%
3% 0.10% 0.00%
4% 0.14% 0.00%
5% 0.17% 0.01%
6% 0.21% 0.01%
7% 0.24% 0.01%
8% 0.28% 0.02%
9% 0.31% 0.02%
10% 0.35% 0.03%
11% 0.38% 0.03%
12% 0.42% 0.04%
13% 0.45% 0.05%
14% 0.49% 0.05%
15% 0.52% 0.06%
16% 0.56% 0.07%
17% 0.59% 0.08%
18% 0.63% 0.09%
19% 0.66% 0.10%
20% 0.70% 0.11%
21% 0.73% 0.12%
22% 0.77% 0.13%
23% 0.80% 0.15%
24% 0.84% 0.16%
25% 0.87% 0.17%
26% 0.91% 0.19%
27% 0.94% 0.20%
28% 0.98% 0.22%
29% 1.01% 0.23%
30% 1.05% 0.25%
31% 1.08% 0.27%
32% 1.12% 0.28%
33% 1.15% 0.30%
34% 1.19% 0.32%
35% 1.22% 0.34%
36% 1.26% 0.36%
37% 1.29% 0.38%
38% 1.33% 0.40%
39% 1.36% 0.42%
40% 1.40% 0.45%
41% 1.43% 0.47%
42% 1.47% 0.49%
43% 1.50% 0.52%
44% 1.54% 0.54%
45% 1.58% 0.56%
46% 1.61% 0.59%
47% 1.65% 0.62%
48% 1.68% 0.64%
49% 1.72% 0.67%
50% 1.75% 0.70%
51% 1.79% 0.73%
52% 1.82% 0.75%
53% 1.86% 0.78%
54% 1.89% 0.81%
55% 1.93% 0.84%
56% 1.96% 0.88%
57% 2.00% 0.91%
58% 2.04% 0.94%
59% 2.07% 0.97%
60% 2.11% 1.01%
61% 2.14% 1.04%
62% 2.18% 1.07%
63% 2.21% 1.11%
64% 2.25% 1.14%
65% 2.28% 1.18%
66% 2.32% 1.22%
67% 2.35% 1.26%
68% 2.39% 1.29%
69% 2.43% 1.33%
70% 2.46% 1.37%
71% 2.50% 1.41%
72% 2.53% 1.45%
73% 2.57% 1.49%
74% 2.60% 1.53%
75% 2.64% 1.58%
76% 2.67% 1.62%
77% 2.71% 1.66%
78% 2.75% 1.70%
79% 2.78% 1.75%
80% 2.82% 1.79%
81% 3.78% 2.44%
82% 4.76% 3.10%
83% 5.75% 3.78%
84% 6.74% 4.48%
85% 7.74% 5.20%
86% 8.76% 5.95%
87% 9.78% 6.71%
88% 10.81% 7.49%
89% 11.85% 8.30%
90% 12.90% 9.13%
91% 13.97% 9.98%
92% 15.04% 10.86%
93% 16.12% 11.76%
94% 17.21% 12.68%
95% 18.31% 13.63%
96% 19.42% 14.61%
97% 20.55% 15.61%
98% 21.68% 16.63%
99% 22.82% 17.68%

Rationale and Benefits:

This proposal aims to optimize the wBTC Market parameters on Paribus, with the following anticipated benefits:

  1. Enhanced Borrowing Activity: Adjusting market rates is expected to stimulate borrowing activity, attracting more users to engage with the platform and fostering a more vibrant ecosystem.
  2. Improved Capital Efficiency: The proposed changes align borrowing and supply rates more closely with market demand, promoting better capital efficiency within the wBTC Market and benefiting users with competitive rates and increased returns.

We encourage all members of the Paribus Governance Community to review and contribute to this proposal. Your input is invaluable in shaping the future of our platform.

Sincerely,

The Paribus Team

1 Like

I am all for it. Rates across the board make sense to me. Yes from me.

1 Like

Well well, whether you chose to borrow or supply, the rates are pretty good compared to others. The borrowing definitely is appealing!

1 Like

my vote is yes for any progress and anything which makes the user experience better , let’s go

1 Like

Im ok with the proposal, its a good improvement.

This is an easy one, makes perfect sense. I think across majority of markets an adjustment is good so we remain competative; once people start one the platform we will grow without the need for further adjustments.