This is a sibling proposal to AIP-26 and proposes lowering the AMPL reserve factor from 20% to 10%.
Following API-12, AMPL borrowing & depositing went live on the AAVE v2 market [date=2021-07-24 time=20:22:00 timezone=“UTC”]. Since then, there has been a near 100% utilization rate of deposited assets.
The reserveFactor allows the FeeCollector smart contract to receive part of the interest paid by takers of liquidity. Each asset on Aave has its own reserveFactor.
AIP-26 raises the maximum borrowing rate for AMPL and would result in more fees coming into the system. This AIP proposes (in tandem) lowering the AMPL reserve factor from 20% to 10%. This shares more of the revenue with AMPL suppliers to further incentivize deposits.
- AIP-12 AMPL Listing: https://app.aave.com/governance/18-QmZZ7JqvEx99u7dMNFPBBnew3BgepLCmXRMrNi8y5ndpXn
- AIP-26: https://governance.aave.com/t/arc-raise-ampl-maximum-interest-rate/4996
- Aavenomics: https://docs.aave.com/aavenomics/
call setReserveFactor(0xd46ba6d942050d489dbd938a2c909a5d5039a161, 1000)
On the lending pool configurator contract
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