Ok @bitn8 here is the updated model and proposal idea based on all feedback - focused on earn:
- Institute a yield curve on earn, no lockup - details in the model.
- Ensure the borrow APR/Dist. APR to never exceed the earn APY so that borrowers can’t make free money by going back into earn.
- Provide a circuit breaker that turns off new deposits if the collateral/deposit ratio exceeds 90%.
Model for yield curve:
Note*
Yield curve would be based on aUST minting, so every time new aUST is minted from a deposit, the yield curve starts for those funds.
Tiered approach accomplishes similar ends but would have lockups, so we suspect most will prefer yield curve
Estimates are in blue