Summary
This proposal updates the Interest Rate Model (IRM) of the anDOLA market on Frontier from the current utilization-based JumpRateModel to a constant rate model.
Rationale
Frontier is a deprecated product, and leaving excess DOLAs supplied to its markets exposes the protocol to unnecessary risk. A utilization-based model can attract additional liquidity and create fluctuating borrow incentives that no longer serve Frontier’s purpose. Moving to a constant borrow rate makes the market simpler, predictable and better aligned with a wind-down posture, while reducing governance and monitoring overhead.
Specification
A ConstantIRM contract will be set to anDOLA that returns a fixed borrow rate per block. The suggested rate is ~2.5% APR (matching the current effective borrow rate of the existing model), but governance may set a different constant depending on risk preference.
- anDOLA: Address: 0x7Fcb7DAC...3f0a8a670 | Etherscan
- constantIRM: Address: 0xd3d6ddb2...e17e6f1a7 | Etherscan
- borrowRatePerBlock: 9512937595
On-Chain Action
- anDOLA._setInterestRateModel 0xd3D6ddB266dC9db2B71B095840c3B98e17e6F1A7