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:
sUSDe market uses a rate curve pegged to sUSDe rates. Here is a comparison of parameters:
Old:
low_ratio = 0.35
high_ratio = 1.5
target_utilization = 0.85
New:
low_ratio = 0.35
high_ratio = 2.5
target_utilization = 0.8
Old rate curve is shown with a dashed line, and new one is the solid line:
