Abracadabra's Proposal for CRV Collateral Lending Interest Rate Adjustment Fails to Pass Vote
On August 3rd, TuoniaoX.com reported that Abracadabra's proposal for CRV collateral lending interest rate adjustment failed to pass the vote, with only 27.74% support. The opposition rate was 72.26%, with masterofdisaster.eth casting 10 billion SPELL tokens against the proposal, accounting for nearly 100% of all opposition votes.
On August 3rd, TuoniaoX.com reported that Abracadabra's proposal for CRV collateral lending interest rate adjustment failed to pass the vote, with only 27.74% support. The opposition rate was 72.26%, with masterofdisaster.eth casting 10 billion SPELL tokens against the proposal, accounting for nearly 100% of all opposition votes.
As previously reported, the proposal noted that given the protocol's current significant CRV risk exposure, it proposed applying collateral-based interest rates to two CRV cauldrons. Under this proposal, the interest rate for CRV collateral would include a base rate that depends on the sum of outstanding principal from both CRV cauldrons. The actual interest rate would be generated by combining the base rate with an interest rate multiplier. The interest rate multiplier would depend on the collateral ratio of the cauldrons.
The effect of this proposal would be that all interest would be directly deducted from the cauldrons' collateral and immediately transferred to the protocol's treasury to increase the DAO's reserve factor, thereby reducing DAO risk related to CRV-associated liquidity conditions.