ARC: Update AMPL interest rate curve to account for over-approximation in compounded interest

I think @pakim249 covers a lot of rational ground, but fair to see the other perspective too.

@Lester having lost 500 USD over the last days trying to compete for withdrawal, I can tell you this is a pretty bad user experience. On top of having to watch it all the time, or build a bot.

If we accept this is a 16m USD test with users money, can we then at least discuss implementing a warning or something on entering the Ampl pool saying that lenders shouldn’t expect this to behave like a normal pool and that their liquidity may well get trapped on the platform for a period of time.

This pool will never get to 100-500m with the current implementation. My best guess is that you’ll have a pretty small pool as soon as lenders can leave.

@danbainbridge from a lender’s perspective the reduced risk potential is for me negated completely by the fact that you know you won’t be able to exit position when you want to.

@cykadelics lenders are gaining value? Factually speaking, no. They are gaining AMPL on paper which they cannot access until the price of AMPL will be lower. The only time they’ll be able to exit position is once we hit $1.27 or lower and it isn’t worth for bots to borrow anymore. Unless they somehow watch the dashboard all day and try to spam a 300 USD Tx and get lucky dumping their position on the next un-informed lender that comes along…

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I’m sorry, I don’t have the time or energy to read everything, I only write to show my interest in the problem being solved. I have Ampl in the pool and like to withdraw it and as of now I’m not able to.

Either if you stop lending out ample to give me the chance of taking out my own ampl or if you raise the interest rates to a degree whe I’m not loosing money.

Thank you evryone who make this forum and coin work

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We need a change now. It is really a bad experience that depositors cannot withdraw, and neither can you borrow. No one is going to want to deposit in AAVE at current AMPL prices when the rebase is x3 or x4 more than the deposit interest. In the same way, everyone will want to borrow.

If it is clear that the% of rebase is the one that defines the situation of the pool in AAVE, it is clear that the% of pool fees must also be related to the percentage of rebase.

Otherwise we are going to miss out on a very good opportunity to generate a lot of long-term revenue for the protocol, as well as ruin AAVE’s reputation.

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There is a mooniswap pool that was created so you can exit the pool at 100% utilization.

I will say as the MC and utility grows on $AMPL you will start to see different market dynamics here. We noticed ample around 5% utilization when in negative rebase. I expect this to rise to 50% over time as more users realize more AMPL can be “put to work” through aave and other platforms.

You can’t think of AMPL as a normal market. It’s elastic money and it lives and breaths with the market conditions.

https://mooniswap.info/pair/0xce4cf5dca6aee3b48b28a846b6253533e6790129

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We can do better in creating incentive for long fern holders. Try!

I think this should be addressed before the next liquidity crunch as the curves just don’t seem to add up. It’s also doesn’t seem like a real fix for the lending/borrowing curve, but at least this fixes that didn’t add up to begin with. In long term, I think the curves should be less sensitive to utilization and be more in tune with the rebase, but in the long run, if the AMPL market cap grows, this problem will not be as visible.

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For posters asking about or reporting inability to withdraw please read the most recent updates here: