To date, the sole application of Interest Rate Risk Oracle has been performing sub-par and furthermore, the Risk Oracle overwrites the Risk Stewards if a manual update is pushed. The spike in wETH Borrow Rates due to a temporary improvement in stETH staking yields triggered a refinancing event that led to AUM, that had taken months to secure, moving away from Prime. This event discourages the builders from moving the capital back to Prime due to the uncertainty the automated methodology.
The Prime wETH reserve, where Interest Rate Risk Oracle is being trialed, is facing lower utilisation and Aave DAO is generating less revenue as a result. Whilst a lot of effort went into generating a native wstETH yield on Prime, the wETH utilisation on Prime is less than Core where the Interest Rate Risk Oracle is not implemented and the wstETH native yield rate is lower than Prime.
Base upon our observations, a three day cadence on the Risk Steward is not the blocker. The amount of time between updates can be improved, adjusting the Slope1 from 9.50% to 7.50%, takes x4 0.50% updates and 9 days to fully implement. This thread is 9 days old and only 1 update has been progressed.