Proposed Update to VIP Scoring for Echelon
Motivation
To increase supplying and borrowing activity in the USDC market and improve supplier yields. Since INIT borrowing is already very cheap under the current VIP incentives, shifting more rewards toward USDC supply and borrowing will be a more effective way to drive rates and activity. This update also continues the gradual increase in milkINIT allocation to support its continued growth and adoption.
Current Criteria
Current scoring allocations are outlined as follows:
USDC supply: 30%
USDC borrow: 20%
INIT supply: 31.5%
INIT borrow: 15%
milkINIT supply: 2%
sxINIT supply: 1.25%
deINIT supply: 0.25%
Proposed Change
USDC supply: 30% → 35%
USDC borrow: 20% → 30%
INIT supply: 31.5% → 26%
INIT borrow: 15% → 5%
milkINIT supply: 2% → 2.5%
sxINIT supply: 1.25%
deINIT supply: 0.25%
Target Implementation
Stage 8