Proposal to Set the Minimum DBR Streaming Rate to 5m/year
Summary
Increase the minimum DBR streaming rate parameter configurable by the Fed Chair from 0 to 5m/year.
Background
The DBR streaming rate is adjustable within a minimum and maximum rate that is defined (and adjusted) by DAO governance. The Fed Chair multisig holds the operator role on the DBR distributor, which gives the power to adjust the DBR streaming rate within the minimum and maximum. The DBR streaming rate is set depending on the global lending target of DOLAs lent out on FiRM; a higher lending target would mean a higher DBR streaming rate. The lending target is determined based on multiple factors, such as overall DOLA demand, AMM Fed POL, DOLA bad debt and risk appetite.
Objective
This proposal seeks to increase the minimum DBR streaming rate from 0 to 5m/year. This level is thought to be an important level as a minimum to ensure global borrows on FiRM can not be targeted for less, which is important to remain competitive in this current market. On top of this, with many INV stakers on FiRM doing so to receive the DBR streamed, this minimum gives more predictability regarding the claimable DBR for these users.
The DBR streaming rate is set at a global per second basis. The issuance rate of 0.15854896 per second is equivalent to 5m/year.
The current maximum rate for DBR streaming per year is 12m (0.380517504 per second); this proposal does not seek to adjust this.
On-Chain Action
- Set minimum the minimum DBR streaming rate to 0.15854896