Abstract:
After Ethena announced points for sUSDe and USDe markets on LlamaLend, utilization of the market briefly went up to 100%. This is a sign of the maximum borrow rates being not high enough given the market demand.
Therefore, I propose to modify the rate curves.
Specification:
USDe market uses a usual (non-custom) rate curve for LlamaLend:
rate = (max_rate / min_rate)**utilization * min_rate
Here is a comparison of parameters:
Old:
min_rate = 0.5%
max_rate = 25%
New:
min_rate = 0.5%
max_rate = 40%
Old rate curve is shown with a dashed line, and new one is the solid line:
