Modify Market Parameters

The mechanism behind Lucra's money market is controlled by a set of carefully determined parameters, which are Target Deposit Rate, Threshold Deposit Rate, Buffer Distribution Factor, Max Borrow Factor, and Valid Price Timeframe. The Modify Market Parameters poll allows users to submit governance polls that adjust parameters that effectively control the Lucra money market.

Modifying the Target Deposit Rate, known as the Lucra Rate adjusts Lucra's target deposit APY, which the protocol attempts to achieve by constantly controlling the NEP emission rate as borrower incentives.

The Threshold Deposit Rate value is the minimum deposit APY that Lucra tries to ensure by making direct deposit rate subsidizations from the yield reserve if the current deposit rate is observed to be below this value. Interest buffer usage from direct subsidization events are limited to a Buffer Distribution Factor portion of the yield reserve's balance per subsidization event.

In cases of excessive and uncontrollable borrow demand, the Max Borrow Factor, which limits the amount of stablecoin liquidity available to be borrowed, can be adjusted to allow lNEP redemptions to occur.

The money market is configured to be somewhat resilient to price oracle downtimes, where price values are considered invalid if they are older than Valid Price Timeframe.

Parameter Name

Description

Target Deposit Rate

The Lucra Rate. Target stablecoin deposit APY of Lucra Protocol

Threshold Deposit Rate

Threshold deposit APY to trigger yield reserve's interest buffer distribution

Buffer Distribution Factor

Maximum portion of the yield reserve that can be distributed per deposit rate subsidization event

Max Borrow Factor

Maximum portion of money market's stablecoin liquidity available for borrows

Valid Price Timeframe

Time window before the money market considers oracle price data invalid

Genesis Values

Parameter Name

Value

Target Deposit Rate

30% APY

Threshold Deposit Rate

28% APY

Buffer Distribution Factor

20%

Max Borrow Factor

90%

Valid Price Timeframe

60 seconds

Poll Format

Field

Description

Optionality

Title

Poll title

Required

Proposal Rationale

Short description of poll rationale

Required

Information Link

External URL for further information

Optional

Target Deposit Rate

Proposed target deposit APY of Lucra Protocol

Optional

Threshold Deposit Rate

Proposed threshold deposit APY of Lucra Protocol

Optional

Buffer Distribution Factor

Proposed maximum portion of the yield reserve distributable per direct subsidization event

Optional

Max Borrow Factor

Proposed maximum portion of money market's stablecoin liquidity available for borrows

Optional

Valid Price Timeframe

Proposed time window before the money market considers oracle price data invalid

Optional

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