Modify NEP Distribution for Lucra Protocol

The Modify NEP Distribution poll can be used to submit polls that adjust parameters related to borrower NEP distribution. NEP distribution to borrowers are controlled by 3 parameter values, Borrower Emission Cap, Increment Multiplier, and Decrement Multiplier.

Calibration of the borrower NEP emission rate will be used to control stablecoin borrow demand, which in turn affects the stablecoin deposit rate. The emission rate will be adjusted based on the relation between the current deposit rate and the target deposit rate.

If the current deposit rate is calculated to be below the target, the borrower NEP emission rate is increased by a factor of Increment Multiplier. Otherwise, if the current deposit rate is above the target, the emission rate decreases by a factor of Decrement Multiplier.

To prevent the emission rate from spiking and having an excessively high rate, the emission rate is capped to the Borrower Emission Cap. The emission rate also has a minimum rate of Borrower Emission Floor to allow a minimum baseline of NEP incentives for borrowers.

Genesis Values

Poll Format

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