We are PembRock Labs team.
We ask Ref.Finance for supporting our REF lend pool with by REF tokens.
Utilization in REF pools is almost 100%
Sorry if I’m not familiar with how exactly your protocol works, couldn’t find source code on GitHub. But, can’t you just raise borrowing rate? If it’s too cheap then any $REF deposited would be instantly used for more leverage, which doesn’t help lenders who are locked into their position
Now we use REF tokens for borrowing.
And Borrowing interest APR now is -66.64%. Utilization has almost 94%. REF is a very demanded token in farm Pools. So, now we need 140k for this month. It’ll decrease borrowing interest APR for users. Also, a decrease in borrowing interest will increase the demand for farm pair REF NEAR.
But with an increase in the number of users, we will need more tokens in the lend pool.
agree to add 100,000 Ref to the pool as a temporary solution, while to suggest Pembrock team to review the rate of lend/burrow to adjust the natural market demand.
reason to support:
- Pembrock is a leverage farming layer on top of Ref.finance, most of the incentivized value returns to Ref.finance to deepening liquidity for better trade.
- The dominant use case of these lend liquidity is to deepening liquidity pool on Ref
- Ref was originally positioned to support the NEAR DeFi ecosystem growth.
Long term plan:
Pembrock team need to adjust lend/burrow rate to adjust for market demand.
I agree with veRUST Reasoning.
There are a couple more things I think we must consider before making a final decision:
- Pembrok is providing an excellent use case that should be driving demand for REF, hence helping support the price (we are still deep down from ATH). By stepping in with our own REF tokens, we could be stunting that market cycle;
- Following on the above, we should be considering how to best communicate to users that single sided deposit of REF on Pembroke is an option. Can we add a banner to the bottom left of the REF website as we do when we have other launches or announcements?
- We have to take into account that while leverage farming increases liquidity, it also leads to mercenary farming and downside pressure on the REF token. A loan of 100,000 REF to enable people to mine more REF and dump is not sustainable.
- My last suggestion is that this one off loan be made from the DAO itself - current proposal transfers to Ref Chef and delegates the power to him to then deposit on Pembrok, This should be done with a direct contract call, all REF interest accruing back to the DAO in a way that is easy for the Community Board members to track. Considering how busy we are, and the board’s track record of following up on things, there are reasons to be concerned that the ‘temporary loan’ will be otherwise forgotten assets never returned.
We’re again close to utilization, and we wanna ask you for Lend pool boost. Now we need 240k~
As we can see - REF pool is highly demand!
AS @veRUST said earlier: Ref was originally positioned to support the NEAR DeFI ecosystem grwoth.
Moreover, REF’s DAO receives rewards in PEM from Lend Pool.
So, DAO receives rewards in REF + PEM! As for me - it’s great for DAO