Clearpool Enhances Interest Rate Mechanism for Greater Borrower Flexibility

Clearpool has further enhanced its interest rate mechanism for permissionless pools, significantly improving flexibility for borrowers. This advancement empowers borrowers to incorporate a premium to the interest rate parameters (Ym, Y1 & Y0) within their pool. Upon requesting a premium or discount, the interest rate mechanism updates on a T+1 basis. Borrowers cannot decrease their parameters below their base rate, as voted on by Clearpool Oracles.

It is important to note that the Clearpool Oracle system remains unchanged, playing a critical role in securing the interest rate mechanism. Oracles will continue to perform their essential function by voting on the interest rate parameters every epoch (currently two weeks), which will serve as the base rate for AA-rated borrowers.

This enhancement presents numerous advantages as it enables borrowers to promptly adapt to shifting market dynamics. Moreover, the adjustment of interest rates allows borrowers to expeditiously attract additional liquidity whenever required, incentivizing lenders with increased rates. These improvements demonstrate Clearpool’s commitment to providing a robust and efficient lending ecosystem for all participants as we pioneer on-chain credit.