Barbedouce
@barbedouce8
eUTxO lover & Indigo POG member. Ubiqwity dev #crypto #cardano
Here are the links to my previous threads which explain the terms in detail:- x.com/diwalost/statu… x.com/diwalost/statu… Feedback, criticism and suggestions are always welcome. Thanks for reading this thread..🙏 @Indigo_POG
$iUSD parameters update - Part 2 Prop. #89 was passed to optimize $iUSD parameters with respect to algorithmic interest rates. Base Interest, NTCR, CTCR, & Upper Interest Limit were explained in Part 1. Remaining terms are explained here👇 @Indigo_protocol @Indigo_POG @IndigoPWG
Key Takeaways: - • Minimum interest is applied if ITCR < NTCR. • Even if ITCR is above NTCR but redeemable supply >= 5%, int is min. • If redeemable supply < 5%, higher interests kicks. • Maximum interest is applied once ITCR => CTCR depending upon redeemable supply.
Once the value to ITCR goes beyond NTCR, the interest starts to increase. Even if the value of ITCR > NTCR but Redeemable supply is 5% or more, interest remains minimum at base Interest. Only once the redeemable supply is below 5%, higher interest mechanism kicks in. @Indigo_POG
Once we have these values, we can calculate the value of Final Interest Rate as per the Formula depending on various situations. The calculation shows that if ITCR < NTCR, minimum interest rate equal to Base Int is applied by the protocol even if the Redeemable supply is zero.
If redeemable supply < 5%, the value of Discount Rate starts to increase and the discount on interest starts to decreases. At 0% supply in redeemable zone, the value to Discount Rate becomes 1 and at this point no discount is available on interest meaning max interest applied.
If the supply of an iAsset in the redeemable zone is 5% or more, the value of Discount Rate will be zero. (Refer attached calculation). The interesting thing to note about Discount Rate is that it's value ranges from 0 to 1 where 0 means Max Discount & 1 means no discount.
The formula for calculation of Discount Rate is shown in the below image. The value depends on Redeemable supply, Buffer Rate & Total Minted Supply of iAsset concerned. As buffer Rate is decided by DAO Vote, the value of Discount Rate effectively depends on % of redeemable supply
The calculation shows the values of Variable Interest rate in different scenarios depending on the value of ITCR. In case ITCR < = 0, the value of this factor will always come out to be zero. Once the value of ITCR > NTCR, the value starts to increase. (See attached image).
Variable Interest Rate is calculated as per the formula in the below image. This formula shows the value of Variable Int rate depends on ITCR, NTCR, CTCR, Base Int & Upper Limit Int. All these values except ITCR are fixed by DAO Vote, so its value changes as per changes in ITCR
Final Interest Rate to be applied to a CDP is calculated as per this formula:- Final Interest Rate = Base Interest + [Discount Rate * Variable Interest Rate] Base Interest is Fixed by DAO Vote for each iAsset. Other 2 terms in the above formula are calculated as follows:- 👇
A comprehensive framework to decide the Final Interest on CDPs is proposed in the proposal. Here is a step by step breakdown of the proposal & calculations based on different scenarios. To understand various terms used, you can refer to my previous threads (links are at the end).
**Refining Algorithmic Interest Parameters for iAssets** As decided through DAO Vote, Indigo's governance forum activity has moved to Clarity DAO and 1st proposal regarding Algorithmic Interest Parameters for iAssets is submitted to Clarity DAO. @Indigo_protocol @IndigoPWG
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There must be some really smart investors using Indigo Protocol (app.indigoprotocol.io) if they pay almost 25% to borrow iBTC and still make a profit. I hope I can learn how they do it. Does anyone know how they do it?
En tout cas, ça fait rigoler, mais tu seras le premier à venir stacker tes BTC de façon ultra safe (sans bridge ni wrap), grâce à Cardano 🫡 Mais va falloir DYOR, t’es resté bloqué en 2017. ça représente bien le ct FR ici
Super impressed with how Indigo enables fully automated and secure CDP management! No need to hold keys, yet still ensures safety and clear strategies. 👉 Follow Indigo to explore more smart DeFi tools!
Fully automated CDP management—executed on-chain, with your keys, your control. This is Indigo Autopilot: 🔹 Strategy-based execution 🔹 Locally hosted 🔹 No key custody Smart position management and automation is being built for everyone! 🟣
Just a reminder that Cardano's stablest stable coin has returned over 20% on dollars over the past year on @Indigo_protocol , and it's still doing it.