Hello, and thanks for these recommendations,
@ChaosLabs, the main use-case to borrow GNO as it is now is to use it to stake, a bit similar to RPL on Mainnet.
The staking yield is currently ~15%. Placing Slope1 at 7% will likely result in an equilibrium higher than desired as this is a deal “too good” for borrowers.
Would you accept working with our recommended interest rate curve while maintaining isolation mode and very conservative borrow caps?
we designed the curve with the “borrow to stake” use case in mind, these legacy “45% uOpt very high slope2” curves can’t hurt the protocol but are inefficient in nature and end up with a lot of “sleepy” liquidity that doesn’t generate yield for users and revenue for protocol.