CREAM’s Iron Bank upgrade stablecoin interest rate model
In an effort to push its utilization rate to 80%, CREAM’s Iron Bank has lowered its stablecoin interest rate slope by 50% (between 0% and 90% utilization rate).
The team explained that the new update would increase protocol capital efficiency and allow borrowers to obtain better interest rates at the same utilization rate. For instance, the APY for borrowers will be between 10.96% and 20.2% at a utilization rate of 80-90%.
Before now, the utilization rate of Iron Bank hovered around 40%. This resulted in large amounts of unproductive assets in the protocol. CREAM wrote:
Our goal with the update is to achieve a utilization rate of 80%. At this utilization rate, suppliers will earn high interest while the pool remains liquid for withdrawals.
Meanwhile, 24 hours ago, CREAM introduced flash loans across all the protocols in the ecosystem, including the Iron Bank, C.R.E.A.M. v1, C.R.E.A.M. BSC, and C.R.E.A.M. Fantom. According to the team, the introduction of flash loans is a significant leap in CREAM’s journey to becoming “the most capital efficient money market” in the cryptocurrency space. Following its launch, C.R.E.A.M would offer the largest set of flash loanable assets in the crypto space.