Introducing Leverage Interest Rate to Incentivize Parrot Stability Pool

  • Stability pools to incentivize USDC and USDT liquidity for PAI
  • PAI interest rate to rise to incentivize USDC stability pool
  • The interest rate will be determined by the imbalance ratio of PAI:USDC in a stable swap pool.
  • A stable vault may have liquidation events if accrued interest dips the collateral ratio below 100.5%
  • The leverage interest rate adjustments will start on November 22nd
  • 2 weeks grace period until stable vaults liquidation is enabled on December 7th
  1. Introduce stability pools to specifically incentivize USDC liquidity for PAI
  2. The protocol will start charging a dynamic Leverage Interest Rate on PAI. These interests will pay the USDC depositors in the stability pools.

Leverage Interest Rate

  • Deposit 100 USDC into Saber to get 100 SBR UST-USDC LP
  • Deposit 100 SBR UST-USDC LP in Parrot to mint 99 PAI
  • Trade 99 PAI for 99 USDC from a USDC:PAI trading pair
  • Deposit 99 USDC into SBR to get 99 SBR UST-USDC LP
  • At this point, the leveraged farmer has 199 SBR LP from 100 starting USDC, nearly doubling the yield.
  • The leverage farmer can choose to repeat the leverage cycle

Phased Introduction of Interest Rate

  • Stable vaults liquidation penalties will be reduced to 0.1%
  • Stable vaults liquidation level will be set to 100.5%
  • 2 weeks grace period before liquidation is turned on





Liquidity Network for Lending & Borrowing

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

You Hate Bitcoin, But You Need It

So What Benefits Can Businesses Gain from Tokenization on EDC Blockchain?

How To Invest In Crypto Like A Joe, Part II: Cultivating An Investor Mindset By Understanding The…

Get NFT Songs — Interact With & Support Artists In Personalized Fan Communities

Get NFT Songs - Interact With & Support Artists In Personalized Fan Communities

Bounty0x Hunter guide

Native Staking platform on HappyFans: how to stake $HAPPY and get high rewards.

How to Choose an Ethereum Mining Pool

Originally published on Instagram

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
The Party Parrot

The Party Parrot

Liquidity Network for Lending & Borrowing

More from Medium

Part 2: Introducing Socean’s Governance Token

Saber launches scnSOL-mSOL pool!

Drift Protocol — January 2022 Monthly Update

Yield Yak x Geode Finance x Eden Network team up to bring liquid staking to Avalanche