Proposal Summary

This proposal requests a temporary stablecoin borrow-curve setting for the current RMM USDC and WXDAI reserves targeting 7.94% APR at 100% usage, or about 8.26% APY, through October 31, 2026. Under the current live curve structure, this means keeping base variable borrow rate = 7.50%, variable slope 1 = 0.00%, optimal usage ratio = 80.00%, and setting variable slope 2 = 0.44%. October 31, 2026 is proposed as a reassessment point, not as an automatic reset date and not as an automatic continuation date.

If both RIPs 45 and 46 are voted in favour, only the one that obtained the most votingPwer in favour will be applied.

Motivation

The governance objective is to keep a stablecoin rate that is more manageable for borrowers while still preserving a positive lending incentive for depositors.

This proposal is based on the last finalized audited on-chain window currently available for measurement, covering 2026-04-12 to 2026-05-24.

Over that finalized window:

• generated borrowing interest: 160,016.86
• observed repayments: 132,767.43
• repayment coverage: 82.97%
• net debt change over the audited window: +47,793.50

For completeness over that same audited window:

• gross new deposits: 1,518.63
• gross withdrawals: 21,269.16
• liquidation principal: 69.75

In practical terms, the system generated more borrowing interest than borrowers repaid over that finalized window, and debt continued to drift upward. This proposal is therefore framed as a temporary stabilization adjustment.

Context

The historical equilibrium estimate implied by observed repayment behavior over the finalized 2026-04-12 to 2026-05-24 window was:

• 7.9445% APR
• 8.2677% APY
• variable slope 2 = 0.4445%

For governance and implementation, the clean rounded value proposed here is:

• variable slope 2 = 0.44%

That rounded setting implies:

• maximum variable borrow rate at 100% usage: 7.94% APR
• implied borrow APY: 8.26%
• implied depositor rate at 100% usage with unchanged reserve settings: 7.15% APR
• implied depositor APY at 100% usage with unchanged reserve settings: 7.41% APY

Applied back to the audited phase, that rounded setting would have implied:

• expected borrowing interest: 132,689.34
• observed repayments: 132,767.43
• repayment coverage: 100.06%
• implied debt drift: -78.08

RIP00040 launched the RMM v3.5 development process, but the voted text did not commit the DAO to a single stablecoin-rate path. It explicitly left Stage 1 parameters and stablecoin-rate parameters to separate governance decisions.

The proposed reassessment point of October 31, 2026 is also consistent with the broader settlement timeline already discussed on the forum, including:

• a Q3 2026 benchmark dated October 2, 2026 for securing 35-40 Certificates of Compliance
• procedures following the Special Fiduciary's report on or after October 31, 2026

Implementation steps

1. Apply the following temporary interest rate strategy to the current RMM stablecoin reserves, USDC and WXDAI:
   • base variable borrow rate = 7.50%
   • variable slope 1 = 0.00%
   • variable slope 2 = 0.44%
   • optimal usage ratio = 80.00%
2. Verify on-chain after execution that the effective maximum variable borrow rate at 100% usage is 7.94% APR.
3. Keep that setting in place through October 31, 2026.
4. Reassess after October 31, 2026 through a new governance decision using updated finalized on-chain data and the operational context then available.

Team

No separate operating team is requested by this proposal.

If approved, execution would need to be carried by RealT, as the actor currently able to deploy or configure the relevant RMM stablecoin interest rate strategy and apply it to the USDC and WXDAI reserves.

Budget

Not applicable.

This proposal does not request a direct DAO budget allocation, grant, or incentive program. It is a protocol-parameter adjustment proposal.

Roadmap

• if approved, implementation by RealT
• on-chain verification after execution
• maintain the setting through 2026-10-31
• reassess immediately after that date through a new governance decision

Objectives

Short-term objectives:

• bring borrowing interest generation closer to observed repayment capacity
• reduce the risk of continued debt drift caused by an overly demanding borrow curve
• provide a temporary stabilization setting during the current transition window

Long-term objectives:

• preserve governance flexibility after the first late-October reassessment point
• improve rate-governance quality by grounding temporary adjustments in finalized on-chain evidence

Key terms

• APR: annual percentage rate, non-compounded annualized rate
• APY: annual percentage yield, annualized rate including compounding
• base variable borrow rate: starting point of the variable borrow curve before slopes are added
• variable slope 1: lower part of the variable borrow curve up to the optimal usage ratio
• variable slope 2: upper part of the variable borrow curve above the optimal usage ratio
• optimal usage ratio: utilization threshold where the curve switches from the lower segment to the upper segment
• repayment coverage: observed repayments divided by reconstructed borrowing interest over the same audited window
• finalized audited window: finalized on-chain observation window used as the quantitative basis of this proposal

https://forum.realtoken.community/d/133