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:
- 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.
- 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