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 |
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 |
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 |
Last modified 1yr ago