Hello,
On behalf of Franklin DAO we would like to share our thoughts on the [ARFC] Aave V2 Interest Rate Curve proposal and explain our support.
Voting in favor of the proposal supports a more efficient and optimized interest rate curve, leading to a healthier ecosystem and stronger growth potential for the Aave v2 platform.
- Gauntlet initially outlined two high level benefits: Mitigating risk and building reserves.
- Optimized Utilization: By their elasticity model, the new interest rate curve will likely lead to optimized utilization of the platform by fostering a more attractive borrowing and lending environment. This could lead to a healthier balance between borrowers and suppliers. The relative token specific analysis of this dynamic were helpful in seeing the impact of this proposal.
The mix up in the specification table seems confusing, but as Gauntlet mentioned it seems that the gist of this proposal can be taken from the forum post and relative token specific analysis.