TechFlow reported that DeFi lending protocol OpenLeverage has proposed an interest rate model adjustment. The proposal states that the current model—capping rates at a maximum annualized 20%—is no longer sufficient to keep pace with market dynamics. The new model will adjust the maximum borrowing rate more responsively based on capital utilization.
When the utilization rate of each funding pool reaches the threshold defined in the rate model, the maximum borrowing rate will increase by 20% every 12 hours. This process will continue until the rate reaches the cap of 2000%.
Conversely, when utilization falls below the threshold, the maximum rate will decrease by 30% every 12 hours until it reaches the predefined minimum value.
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