Good evening, little question : why it's not possible to

In on another hand, I can also do that "game" without that restriction by deposit USDC and borrow DAI instead USDC Perhaps a good compromise would be let that situation happens only if all asset in that situation do not represent more than x% of the total of all deposit minus all borrows of that token

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07.03.2022

HelpfulBrother

Draazzzz
In on another hand, I can also do that "game" with...

Sure but they're not the same asset. I think the compromise could be possible but it makes the system more complex e.g. what happens when someone is allowed to borrow then the threshold is reached, is that position changed to a different stable rate or back to variable. It's an interesting idea though, feel free to suggest at governance.aave.com there may be appetite for it.

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07.03.2022

Draazzzz Автор вопроса

HelpfulBrother
Sure but they're not the same asset. I think the ...

Yes it would be more complex (at least the code). For your sample, no, existing position should not never change from fixed to variable and the rate from fixe rate cannot change (or it's not a fixed rate). In that case, nothing should change. But if it's really necessary, the fixed rate should be cut in two : one fixed rate for the value below the threshold and another one in variable. It's too complex. Perhaps another solution would be to have only fixed rate with term (1 month, 3 months, 6 months, etc) if the token borrowed is the same of the colateral. I will not suggest that to the governance of aave because here we can use another stable coin (DAI for instance). I was thinking more on another plaftorm based on AAVE code where only one stable coin would be available.

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07.03.2022

HelpfulBrother

Draazzzz
Yes it would be more complex (at least the code). ...

Stable rate can be rebalanced under the right conditions so it's not 100% stable, just more resistant to rate movement. I think most markets will have more than 1 stable choice so you'll always be able to borrow another stable at stable rate. v3 will also allow higher LTV when borrowing stables on stables.

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07.03.2022

Draazzzz Автор вопроса

HelpfulBrother
Stable rate can be rebalanced under the right cond...

Oh, I was not aware about that not 100% stable. Do you have a sample of "right conditions" ? Yes most markets but not all ;) For v3, good to know :)

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07.03.2022

HelpfulBrother

Draazzzz
Oh, I was not aware about that not 100% stable. Do...

Sure, https://docs.aave.com/faq/borrowing#when-could-my-stable-rate-be-rebalanced

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07.03.2022

Draazzzz Автор вопроса

HelpfulBrother
Sure, https://docs.aave.com/faq/borrowing#when-co...

Thanks :)

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07.03.2022

HelpfulBrother

Draazzzz
Thanks :)

All good, thanks for the chat 🙌

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07.03.2022

Draazzzz Автор вопроса

HelpfulBrother
All good, thanks for the chat 🙌

👍

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07.03.2022

HelpfulBrother · Accepted Answer

HelpfulBrother

This is by design as you could 'game' the stable rate by depositing an asset, borrowing enough at a stable rate that your deposit generates more return than you borrow, which negatively impacts the protocol.

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07.03.2022

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Good evening, little question : why it's not possible to

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