Clearpool, an innovative decentralized credit marketplace, has announced the results of its recent Oracle voting round, which concluded on May 31, 2024. The outcomes of this round were officially implemented on June 3, 2024. During this round, 12 Oracles participated and voted on three crucial parameters that will shape Clearpool’s interest rate curve for AA-rated borrowers.
These parameters include Y0 (interest rate at 0% utilization), Ym (interest rate at Xm, the optimal utilization rate), and Y1 (interest rate at 100% utilization). Oracles whose votes fell within the designated range were considered successful and factored into the weighted average calculation, while those outside the range were excluded.
The results of the Clearpool Oracle voting round have been revealed! Interest rates for AA-rated borrowers have been increased in line with the Oracles’ assessment of current market pricing. The optimal interest rate (Ym) has risen from 13.54% to 13.80%, indicating higher interest rates for borrowers.
Credora Score and Statistical Analysis were utilized to determine the interest rates based on different score ranges. For scores between 850 and 1000, the rates were set at 15.38% for Y0, 13.80% for Ym, and 30.67% for Y1. As scores decreased within the range of 700 to 850, the interest rates also increased, reflecting higher risk premiums.
To ensure fairness and accuracy, statistical parameters were calculated for the interest rates. The Interquartile Range (IQR) for Y0 was 1.49%, for Ym it was 2.90%, and for Y1 it was 7.25%. Upper and lower boundaries were established to filter out outlier votes and ensure that only reliable data influenced the final interest rates.
The Oracle voting results were carefully analyzed, with key participants such as Amber Group, Auros, Azure Tide, and Sino Global Capital proposing interest rates within acceptable ranges. Not all votes were successful, as evidenced by Wintermute’s Ym rate falling short of the criteria. This stringent evaluation process guarantees that only accurate and representative rates are used in the final calculations.
Following the voting process, the final parameters for AA-rated borrowers were determined. The new parameters slightly increased from the previous ones, with Y0 at 15.38%, Ym at 13.80%, and Y1 at 30.67%. These adjustments reflect the changing market conditions and the collective input from the Oracles.
Clearpool remains committed to transparency and fairness in its decentralized credit marketplace. The Oracle voting mechanism ensures that interest rates are determined through a consensus-driven approach, benefiting both borrowers and lenders. These new parameters will be implemented in the next epoch, enhancing the platform’s efficiency and competitiveness.
Clearpool’s utilization of decentralized governance to set market parameters showcases its dedication to adaptability and fairness. As the decentralized finance landscape evolves, Clearpool’s methodology serves as a blueprint for effectively managing and adjusting key financial parameters through collective input and data-driven decision-making.