OOKI

This snapshot vote would approve modifications to how borrowing interest rates are tuned on Ooki protocol by implementing a floor or lower bound limiting how low borrowing rates can fall. This minimum interest rate floor only affects borrowing rates and does not impact lending rates, as the lending rates are a function of how much interest is being paid and the pool size

If approved, this snapshot proposal would adjust the minimum borrowing interest rates such that borrowing rates would be unable to reach below a certain threshold value regardless of the pool utilization. The minimal interest rates would be configured to the following values:

Minimal interest rate of 0.8% for stablecoins and 0.1% interest for all other coins.

This snapshot proposal will be used to enact the above changes for all Ooki chains that Ooki protocol is deployed on. If this snapshot vote passes, then there will be an onchain vote on Ethereum. This onchain vote will be combined with a vote for i-tokens as collateral.

The rationale for implementing a minimal borrowing interest rate is to stabilize interest rates and increase the amount of funds available for borrowing. This change would affect any pools where the borrowing rates fall below the minimum threshold. Once sufficient data is collected that pools are working efficiently the minimum borrowing rate floor can be removed.