Proposal #141
Passed on 17 Aug 2024 with 100.0% of the votes for yes.
Yes
100.0%
100.0% without abstain
Veto
0.0%
of votes cast
Ended
17 Aug 2024
100.00%
of votes cast
0.00%
of votes cast
0.00%
of votes cast
0.00%
of votes cast
The Treasury contract plays a crucial role in managing the calculation and distribution of NLS rewards as incentives to lenders within the protocol. Currently, the utilization of funds in the lending pools is relatively low. Specifically, 1.8 million USDC has been supplied in total, with only 360k USDC actively borrowed.
Upon approval, Proposals 139 and 140 will increase the minimum utilization threshold parameter to 65%, preventing new depositors from entering the pool and further diluting rewards. However, a significant portion of the capital remains underutilized.
The aim of this proposal is to adjust the NLS rewards scale based on the total supplied assets in the pools. This adjustment is designed to maintain overall rewards runway in the long term and provide flexibility to increase rewards when a higher number of borrowers is present.
The proposed thresholds and NLS APRs are as follows:
From 0 to 500k - 7% APR in NLS incentives;
From 500k to 1M - 5.5% APR in NLS incentives;
From 1M to 5M - 4% APR in NLS incentives;
From 5M to 7.5M - 3.5% APR in NLS incentives;
From 7.5M to 20M - 3% APR in NLS incentives;
From 20M to 30M - 2.5% APR in NLS incentives;
Above 30M - 2% APR in NLS incentives.
By voting YES to this proposal, you agree to adjust the existing NLS rewards scale to align with the proposed structure above.