Thanks for sharing! I believe the community needs to agree on a framework or methodology to set supply and borrow caps asap, so I would love to get input from other contributors!
Two questions that came to my mind:
- Is a good idea to adjust the borrow cap primarily based on the
UOptimalvalue? It’s the IR’s purpose to drive liquidity of the pool, not the borrow cap imo. - Borrow cap should be based primarily on market liquidity, contracts risks, asset maturity, bridges risk, etc.