Clarification on 0% yearly CORE loans

Are these still planned? In the deployment, rates are currently set to 20%

The protocol decided to take a systematic approach with cLend. Launching governance is a priority at the moment. You or anyone can propose the 0% core loan. Not sure what the rationale will be for that but I will be voting nay for any proposal that does not prioritize the Treasury

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You or anyone can propose the 0% core loan

Technically proposals will have a minimum number of CoreDAO, so that ppl take official proposals seriously and not overwhelm the system with random requests. They will also have to meet a quorum to pass. So this is not entirely accurate.

I do expect more ppl to revisit the initial 0% loan article - there are pros and cons to locking more core for longer periods of time → reduced supply being one of them. I’m not leaning for/against just yet until we see more research.

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Has anyone confirmed that the lending contracts are setup to allow variable loan rates depending on time? In other words can the current contracts support 0% at 1yr vs x% at 0.5 yr

How it is setup, it doesn’t allow variably decreasing rates based on loan life, It is set up with a flat APR that means that the APR will always be the same but interest paid will be a higher percentage of the loaned amount the more time that has elapsed. There is a threshold level that once it is reached(1.1x the loan amount) that liquidation is allowed. Which means that with an APR of 20%, you will be liquidated after 6 months has elapsed.

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I honestly think keeping the interest rate above 0% is better for the growth of the protocol. Interest payments will help expand the treasury allowing the protocol to grow.

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