[Gauntlet] - Updated Borrow Fee Recommendations (10/11/24)

[gauntlet]

Recommendations Summary

Based on the current market dynamics and asset performance, we recommend the following adjustments to Jupiter’s borrowing rates:

• SOL: Decrease from 0.008% to 0.007% per hour
• ETH: Decrease from 0.008% to 0.007% per hour
• BTC: Decrease from 0.008% to 0.007% per hour
• USDC and USDT: Decrease from 0.01% to 0.009% per hour

Methodology Overview

Gauntlet utilizes asset volatility measures, realized utilization, and a target utilization level of 80% to derive recommendations.

Capped-Based Implementation

Gauntlet’s methodology for deriving borrowing rate parameters can result in large recommended changes. To ensure parameter changes do not create unintended side-effects, we cap all changes by 20% between parameter recommendations. Gauntlet plans to re-assess conditions weekly and continue processing reductions if the market sees fit.

Supporting Data

SOL:

ETH:

BTC:

USDC:

USDT:

Utilization:

[Polin3]

Not sure i understand the data, whats the reason you think rates should drop?

[SolanaSultan]

too expensive and it can be afforded allowing more people the desire to use the PERPS?

We want people to Use the Perps but not abuse them… Hence the give and take.

[Qwerl32]

How could they abuse them?

[SolanaSultan]

Just referring to the fact that too low of a fee would hurt the system, causing the perps to not generate enough. Sorry for confusion.

[fanatik0]

Utilization has spiked to 90%+ and Gauntlet hasnt shown up in weeks for recomendations, are we still paying them for their service?