[GIP-20] Update Fees & Interest rate curves
AI summary
This proposal suggests several changes to Gearbox Protocol's fees and interest rate curves in preparation for its V2 launch. It aims to optimize economic incentives for both liquidity providers (LPs) and users who leverage their assets for farming. Key changes include increasing the protocol's share of interest paid by borrowers from 10% to 50% (meaning 33% of interest goes to the DAO), and adjusting interest rate curves for various assets like ETH, BTC, USDC, and DAI to align with lower farming yields in the current market. It also sets initial V2 Credit Account limits and discusses liquidation fees.
If passed, the DAO will receive a larger share of interest income, potentially increasing its treasury for future initiatives like a referral program. Liquidity providers will receive a smaller percentage of the interest paid by borrowers, but the proposal suggests their main reward will come from GEAR tokens. Borrowers will see adjusted interest rates, which are intended to make leverage farming more viable given current market conditions. The changes are designed to balance the protocol's financial health with user incentives.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Summary
This proposal includes a batch of changes related to the protocol parameters before the launch of v2: interest rate curve parameters, protocol fee split from borrow-lend spread, V2 Credit Account limits for the start, and liquidation fees in general.
Motivation
In the near future, v2 will be launched, the discussions on the configuration of which are already actively going on in the community (here and here). Based on these…