By Decentralized lending and stablecoin protocol, Lista DAO, has announced a key upgrade to stabilize its interest rate mechanism.
The IRM v1.1 introduces a 30% APR maximum borrowing rate across its markets.
The new version aims to solve one of the primary pain points in DeFi, which is protecting users from wild fluctuations in borrowing costs.
Besides the general limit, Lista has announced a crucial change in its slisBNB/BNB market, with rates now capped at 70% of slisBNB’s six-month average yield:
The slisBNB/BNB market uses a dynamic cap tied to 70% of slisBNB’s 6-month APY for balanced incentive.
Lista Lending Interest Rate Model Upgrade! IRM v1.1 introduces a adjustable borrow APR cap to prevent extreme spikes, all borrowing APR are capped at max 30%. Special Market: The slisBNB/BNB market uses a dynamic cap tied to 70% of slisBNB’s 6-month APY for balanced incentive.
Notably, IRM v1.1 aims to balance rewards for borrowers and lenders by preventing wild cost spikes that challenge cryptocurrency lending markets.
The move reflects Lista DAO’s commitment to ensuring a more user-friendly, predictable, and fair borrowing environment.
That could strengthen the protocol’s position in the competitive DeFi lending sector.
Understanding Lista DAO
For those unfamiliar with this project, Lista DAO is an open-source lending protocol built around liquid staking and stablecoins.
At its core, there’s US dollar-pegged lisUSD, which users can borrow by using digital currencies like BNB, ETG, wBETH, and slisBNB as collateral.
Lista connects with BNB Chain as it offers liquid staking for Binance Coin.
Also, the project has an in-house token, LISTA, which powers the DAO in various ways, including governance, rewards, and revenue-sharing.
With its innovative features, Lista DAO creates a financial environment that ties user participation with the project’s growth.
Lista’s lisUSD and slisBNB
LisUSD is among the primary pillars of the DAO. It adopts over-collateralization to keep the 1:1 US dollar peg.
Besides supporting DeFi activities like borrowing and lending, the stablecoin serves as a trading pair and a digital store of wealth.
LisUSD has a market capitalization of $74 million. The lending protocol has outlined a two-stage growth journey for the stablecoin.
The initial phase draws inspiration from MakerDAO’s model and innovative adjustments to guarantee a stable token free from de-pegging.
For context, MakerDAO’s stablecoin, Dai, boasts a market capitalization of $5.36 billion.
The second stage aims to expand lisUSD’s utility across Binance Smart Chain and Ethereum.
The dual approach is crucial for ensuring stability while promoting growth.
Alongside lisUSD, Lista offers slisBNB, the liquid staking coin for Binance Coin.
The token promises a steady staking yield and the freedom to use it across different networks.
LISTA price outlook
The IRM v1.1 upgrade news could not lift LISTA prices due to the prevailing market-wide slumps.
The digital currency trades at $0.2852 after losing more than 10% of its value in the previous 24 hours.
Digital tokens display weakness with limited upside as September history materializes.
The global crypto market cap lost over 2% in the past 24 hours to $3.8 trillion.
Nonetheless, analysts remain confident that bulls will dominate from next month.
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