Hi @lbsblockchain,
Thank you for the feedback.
The Gauntlet-provided Slope1 parameter has not been incorporated, as increasing Slope1 from 7% to 40% is a dramatic change. Such an increase would have an immediate affect on borrow rates and quite possibly lead to negative feedback on the forum. We shared our approach above and hoped for further dialogue.
Llama believes a more prudent approach would be to increase the Slope1 parameter gradually over several proposals, gauging how the market responds. Increasing Slope1 from 7% to 40% is not something that has been done before and there is no historical data indicating how the market would respond.
As Llama’s proposal moves in the same direction as Gauntlet’s, both Llama and Gauntlet are directionally aligned. Llama is more than willing to continue optimising the interest rates over time.