MIP-019: Increase Synth interest rates to 2% #19
Description
Gradually increase Synth interest rate to 2%
Summary
Gradually increase the synth interest rate to 2% in the next 3 weeks
Abstract
Currently Synth interest rates on Metronome are 1%. TVL is nearing $20m on the platform, and many users have been earning high yield, even > 100% APY on msUSD.
Increasing the Synth interest rate to 2% will allow Metronome to continue product development and liquidity incentives into the future, with minimal earnings impact for product users.
Changing the interest gradually over a three week period will allow users ample time to change their positioning should they desire.
Expectations
Upon passing of this proposal, the Synth interest rate for all Synth assets will increase from 1% to 1.5%.
After two weeks have passed, the interest rate will then move from 1.5% to 2%
Specification
Increase Synth Interest rate to 1.5%, and then to 2% after a fourteen day waiting period.