0x2723723f…0411sent to0xbeccb6bb…9bf6·#23,286,019·view on Etherscan
# Switch anDOLA IRM to Constant Rate & Use Reserves for Bad Debt
Forum: https://forum.inverse.finance/t/switch-andola-irm-on-frontier-to-constant-rate/597
### Summary
This proposal updates the Interest Rate Model (IRM) of the anDOLA market on Frontier from the current utilization-based JumpRateModel to a constant rate model. Alongside the IRM update this proposal will withdraw all anDOLA reserves and utilize these DOLAs towards a bad debt repayment.
### Rationale
Frontier is a deprecated product, and leaving excess DOLAs supplied to its markets exposes the protocol to unnecessary risk. A utilization-based model can attract additional liquidity and create fluctuating borrow incentives that no longer serve Frontier’s purpose. Moving to a constant borrow rate makes the market simpler, predictable and better aligned with a wind-down posture, while reducing governance and monitoring overhead.
### Specification
A ConstantIRM contract will be set to anDOLA that returns a fixed borrow rate per block. The suggested rate is ~2.5% APR, but governance may set a different constant depending on risk preference.
* anDOLA: https://etherscan.io/address/0x7Fcb7DAC61eE35b3D4a51117A7c58D53f0a8a670
* constantIRM: https://etherscan.io/address/0xd3d6ddb266dc9db2b71b095840c3b98e17e6f1a7
* borrowRatePerBlock: 9512937595
### On-Chain Action
* anDOLA._setInterestRateModel 0xd3D6ddB266dC9db2B71B095840c3B98e17e6F1A7
* Withdraw all DOLA Market reserves
* RepayBorrowBehalf the DOLA borrow balance of 0xeA0c959BBb7476DDD6cD4204bDee82b790AA1562