Announcement on Adjustment of Wayki-CDP Collateral Lending Interest Rate Parameters
Recently, due to substantial market fluctuations, the amount of borrowed WaykiChain WUSD stablecoin has increased continuously, due to which WUSD price remained below USD 1 for some time. In order to bring the WUSD price back to USD 1, it is necessary to change the interest rate formula parameters and thus adjust the collateral interest rate (stable rate). See the details below.
The original interest rate formula: r = 0.6 / lg(1 + N). The adjusted interest rate formula: r = 1.8 / lg(1 + 50N). After the adjustment, the average loan interest rate in WaykiChain’s decentralized collateral lending system Wayki-CDP is 28% p.a., see the below figure for details (the x-axis N is the WUSD loan amount and the y-axis Rate is the stable rate). We ask all users to pay attention to the dept position changes in Wayki-CDP. For any questions, please feel free to contact @MeloCai in Telegram.
As of now, about 19 million WICC (9% of the total supply) has been pledged in WaykiChain’s decentralized collateral lending system Wayki-CDP. WUSD loans amount to USD 1.78 million. The main use cases of the borrowed WUSD are investment in Hong Kong innovative pre-IPOs in W Broker, cryptocurrency trading, and overseas payments.
April 25, 2021