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


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.


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.