Sean Bulpin

Cape Town, South Africa.
Noordehoek Life
Horse life
beach bum
live freely

[Sean Bulpin @scbulpin]

@HatomProtocol Send it back to $3

[Sean Bulpin @scbulpin]

@vaken_crypto @HatomProtocol I've lost so much money holding. So so sad

[Hatom Labs @HatomProtocol]

🚨 Parameters Update :

Interest rate models are the curves that dictate lending and borrowing rates in money markets, based on utilization rates.

They're the core math component enabling supply and demand to balance, while ensuring security and liquidity in peer-to-pool models.

We are preparing an update to their parameters which should be implemented tomorrow at the earliest to maximize the efficiency of the protocols, make rates more stable and predictable, while offering better rates for both borrowers and lenders.

Our current params have been static since launch ~2 years ago, designed for initial market discovery. Since then, strong demand for stablecoin borrowing has kept utilization constantly above the optimal point, leading to volatile and unpredictable rates.

The feedback of historical data allows them to be optimized and customized in order to best respond to the economic dynamics of the chain.

Money markets are managed by several parameters:

- Uopt (Optimal Utilization Rate) : the targeted percentage of utilization defining the equilibrium point between supply and demand to ensure maximum efficiency, while ensuring the liquidity of the pool. 

- R0 : represents the initial borrowing rate at 0% utilization of the pool

- Slope1 : represents the targeted borrowing rate at the optimal utilization rate

- Slope2 : represents the borrowing rate at 100% of pool utilization

Three pools will be included in this update: $USDC, $USDT, and $EGLD money market.

For stablecoin pools, the average borrowing rates over the last six months have been higher than 12.5%. This provides an initial anchor point for the rate that borrowers are willing to pay, allowing to set new parameters without disrupting the market, and thus maintaining rates very similar at the current utilization rate.

- Uopt : 80% → 85%
- R0 : unchanged at 0%
- slope1 : 4% → 11.5%
- slope2 : 75% → 50%

The safe increase in the optimal utilization rate will reduce borrowing costs while slightly increasing the lending rate, but both will become much more stable as the pool constantly fluctuates between 80% and 85% utilization.

The decrease in the rate at 100% utilization will reduce the jump around the optimal point while staying high enough at high utilization to protect liquidity and funds accessibility.

For the EGLD money market, the volatile nature of the asset and its potential use for leverage requires greater certainty regarding the pool utilization in order to ensure greater liquidity for safe liquidations.

However, the low volatility of the amounts deposited in the pool, low-risk use as collateral and its primary borrowing usage for leverage staking allows us to slightly increase the optimal utilization rate for greater capital efficiency.

- Uopt : 65% → 75%
- R0 : unchanged at 0%
- Slope1 : unchanged at 4.5%
- Slope2 : 80% → 60% 

This will allow for greater utilization for leverage staking and short-term arbitrage, while enabling lenders to obtain better rates.

As stated above, these changes will only slightly alter the current instantaneous rates to bring them closer to their average rates, without changing the risk profile of the positions currently held in the protocol.

In addition to these changes, we are preparing other updates and improvements to the protocol in the coming days and weeks.

Stay tuned for upcoming announcements!

[Sean Bulpin @scbulpin]

@MartiniGuyYT What's happening with egld ?!?

[Sean Bulpin @scbulpin]

@joewu_official Maybe in the next cycle. 4 years time lol

[Sean Bulpin @scbulpin]

@VorteXz171 You bought so much though ? Did you sell everything ?

[Sean Bulpin @scbulpin]

@evcawolfCZ Hilarious

[Sean Bulpin @scbulpin]

@beniaminmincu Send it baby

[Sean Bulpin @scbulpin]

@LayerZero_Core @0xSoulProtocol Will soul boost htm ?

[Sean Bulpin @scbulpin]

@MariuszMarchel Wait till after dead bounce

[Sean Bulpin @scbulpin]

@_CryptoThunder_ lol we are actually lower than the bear market price and btc is still at $80 000. Imagine if BTC retraces back to $70 000 - egld would be trading at $10 -11

[Sean Bulpin @scbulpin]

@VorteXz171 How much EGLD do you have now ?

[MDX @MDXreal]

I’m going to give $10,000, a full paid trip to Dubai and free tickets to my event on the 28th to someone who reposts this post in the next 72 hours (must be following me so I can dm you if you win!)

[Sean Bulpin @scbulpin]

@VorteXz171 @Veroc_Daniel @GRM_Web3 I'll take 5 !!

[Sean Bulpin @scbulpin]

@VorteXz171 @Veroc_Daniel @GRM_Web3 Scbulpin

[Sean Bulpin @scbulpin]

@EdvinasLobanova @Adam39083347114 Lol

[Sean Bulpin @scbulpin]

@puka_pako @Romsty @sacamento123529 @Veroc_Daniel @MCularea Oh boy here we go lol

[Sean Bulpin @scbulpin]

@future_kid18 Still broke lol

[Sean Bulpin @scbulpin]

@solver_cs @flippifi No bulls here lol

[Sean Bulpin @scbulpin]

@MariuszMarchel Lol