RariCapital

Summary: This proposal outlines an update to the interest rate curves of non-stablecoin assets in an effort to attract their liquidity into various Fuse pools. The interest rate curves of these assets should be higher than the current average (from Cream/Compound/Aave) to account for the added risk. This proposal is being proposed at the same time as a similar one for stablecoin assets: https://vote.rari.capital/#/rari/proposal/QmePE8nRiVy4markC1doqv4CRRuUV4zrbPtMVNxhYwKYx4

Background: CREAM has more aggressive curves for all of the governance tokens that we offer. Compound and Aave have similar curves. We should be attracting all of this liquidity. Additionally, we should be compensating users for the added risk of the pool-based nature of popular pools.

Abstract: CREAM has done great work in exploring interest rate models so we should adopt their model, but increase the rates by 25% (relative; not directly). You can view that model here, under governance+seed: https://docs.cream.finance/lending/interest-rate-model

This should effect the following pools:

• Pool 1
• Pool 2
• Pool 3
• Pool 4
• Pool 5 (not pool 0)

This will not effect:

• Dai
• USDC
• (any other stablecoin)
• ETH
• WBTC (these were captured in the other IRM proposal previously linked)

Motivation: Ensure that the Fuse DAO pools are competitive and able to compensate lenders and borrowers for offering the risk that they are taking when entering into pools.