I am working with active community members, stakeholders, and users of the protocol to enact these changes. App. If you support this change, please delegate COMP to this Autonomous Proposal to: 0x5576a4db81a44cb7158fc8d5ae752cb44f57be76. Coinbase Custody. Governance. ' Exchange Rate. 17: 814: December 9, 2020 Increase DAI Reserve Factor from 5% to 15%. Try Compound Community-built interfaces integrating the protocol. "present value of 1" factor since the present value of 1 factor is the reciprocal of the compound interest factor. Recent Proposals. The Reserve Factor is a percentage of the borrowers paid interest which can be used by the governance or act as an insurance against borrower default which protects all the suppliers. 2: 125: ... Reserve Factor Standardization. The mathematical formula for calculating compound interest depends on several factors. The Compound system currently has a liquidation incentive of 1.05, which means that when a borrower’s debt rises to at least 1 / 1.05 = 95.2% of the value of their cTokens, each liquidation will push them further towards insolvency. Have you tried to contact the big COMP holders? A measure of strength frequently used in Europe is the Reserve Factor (RF). $(window).on('load', function() { Uniform Series Compound-Amount Factor. Proposal 31: Adjusting Reserve Factors. I propose raising the DAI reserve factor from 5% to 15% for the following reasons: De-risk the DAI market: A higher reserve factor would decrease the economics of recursively borrowing DAI and in turn reduce the concentration, leverage, and risk of the DAI market. The community has already signaled a strong interest in raising the reserve factor through a forum poll. It is also expressed regarding peak load and load factor. 3. ga('send', 'event', 'fmlaInfo', 'addFormula', $.trim($('.finfoName').text())); With the strength and applied loads expressed in the same units, the Reserve Factor can be defined as a funcion of the Proof Strength and the Proof Load as shown. Interest rate: The interest rate is also an important factor in your account balance over time. The Compound Interest Calculator, one of the best compound investment calculator options, is a popular way to look at compound interest earned on savings. Asset transfers (transaction fee), and. Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications. A higher reserve factor would adequately move borrow/lend activity from higher-risk assets to lower risk assets to improve the overall protocol risk profile. Increased Reserve Factor. This is a calculated value, and is sometimes referred to, for the sake of clarity, as a realized factor of safety. The maximum amount that they can be liquidated in one transaction is bounded by the close factor. Standardize Reserve Factors: The reserve factors across stablecoin markets are inconsistent. Institutions Earn Manage Reporting. Markets Governance Developers Prices Docs. Compound is a protocol on the Ethereum blockchain that allows users to borrow and lend crypto tokens. 38 Total Proposals. The Comp token represents the administrative rights of the protocol, divided into 10,000,000 fungible tokens. CErc20 / CEther function reserveFactorMantissa () returns ( uint ) C.2 COMPOUND INTEREST (FUTURE AMOUNT OF 1 AT COMPOUND … The high reserve factor just gives lenders a lower rate. For example, USDC which has a fixed price of $1.0, has the same 5% reserve factor as DAI, a stablecoin with relatively higher price volatility. Reserve Factor Overview. Voting by signature lets you place votes across Compound Goverance proposals, without having to send your transactions on-chain, saving fees. Raising the Reserve Factor for DAI from 5% to 15% Especially over long periods, an account with compounding but a lower rate can end up with a higher balance than an account using a simple calculation. engcalc.setupWorksheetButtons(); window.jQuery || document.write('