RFP: New Pool Rate Adjuster
Description
New pools have a difficult time finding product-market-fit due to the 10% maximum starting interest rate. This makes it difficult to attract lenders in cases where the desired rate is greater than 10% or during periods of low-risk 10%+ yields.
This tool would also be helpful to restore pools that have had their rates pushed so far out of range that the pool became abandoned due to lack of interested parties who could push the rate back.
This request is for a tool that can adjust the interest rate of a new or low-liquidity pool. It would do so by taking both a lend and borrow position in order to create the conditions required for rate changes.
About the Author and/or Supporters
I am a delegate and grant recipient in the Ajna community. Read more about me here.
I have heard support for this idea from a handful of investors and users.
Scope
Create a smart contract tool and basic UI that performs the described actions above.
Expectations
The capital required for rate changes should be minimal. The tool should be loaded with gas tokens, quote tokens, and collateral tokens to perform the several transactions required for these interest rate shifts.
Budget
1,000,000 AJNA tokens.
Concerns
- Should enable withdrawals of unused and unstuck assets.
- Should prevent usage on pools with some benchmark level of activity or # of positions.
- Probably more will come up as we think through the idea.
Reporting
- Basic progress update every 2 weeks after receiving the grant.
Timeline
- The faster the better.
Selection Criteria
- Cost
- Timeline
- Quality
- Applicant experience
- References to former work
- Quality of written proposal
- Past performance (if any)
How to Propose
Please post your proposal to the Draft Grant Proposal section of the forum, using the recommended template.