Yaron Velner
@yaron
.@onetruekirk is suggesting to use sDAI as a debt asset https://twitter.com/OneTrueKirk/status/1766635873469362628?s=19 My concern is that the sDAI interest rate is not *directly* controlled by market forces, but rather by gov vote. Hence, this asset has somewhat of a synthetic flavor, which makes it less predictable.
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onetruekirk.eth
@onetruekirk
Agreed that borrowers prefer predictable rates, but will note that a utilization based rate isn’t necessarily predictable either, and may be inadequate to maintain liquidity without governance making adjustments to the curve (see Compound v3 above 99% utilization with ~30% rates)
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Yaron Velner
@yaron
Predictable is best. And yeah, both maker and compound/aave interest rate are unpredictable. But compound and aave rates are more connected to the entire DeFi ecosystem interest rates. While sDAI is only indirectly connected via trial and error adjustments that try to keep the psm full.
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