Abracadabra proposes 200% loan interest rate increase to mitigate CurveDAO risk
Curve has faced multiple setbacks, such as the Conic, JPEG’d, and Curve hacks, which have impacted its total value locked (TVL) and caused ripple effects on the price and liquidity of CRV tokens. As a result, Abracadabra Money is considering raising interest rates to mitigate its exposure to CurveDAO’s native token, CRV. Abracadabra Money proposes rate adjustment In an August 1 announcement, Abracadabra Money proposed adjusting interest rates on collateral-based rates across CRV cauldrons. The proposal suggests charging interest on the cauldron’s collateral before moving into the protocol’s treasury, similar to what the DAO did with Wrapped Bitcoin and Wrapped Ethereum cauldrons. You might also like: EU’s MiCA rules could prohibit MEV activities on Ethereum The adjustments will be 30% on a principal of $0M-$5M, 100% on a principal of $5 to $10 million, and 200% on a principal of $10 to $18 million. They will be combined on the collateral ratio...