Adjust Reserve Factor of asset

Reserve factor is the proportion of the interest paid by the borrowers to Wing project, and it is the absolute main force of the Wing project income. Currently, the number is 15% for all assets in Wing Flash Pool.

The Reserve Factor affects the Wing Project in many ways:

1. Reserve Factor is an integral part of the interest rate model.
A high Reserve Factor reduces the interest earned by users who supply assets, then de-incentivizing users from supplying assets.
A Low Reserve Factor increases the interest that users earn from supplying assets, which in turn encourages users to supply assets and grow liquidity;

2. Reserve Factor acts as the risk premium of Wing’s borrowing assets.
Wing can grow its reserves faster from assets assigned to a higher Reserve Factor. Since the reserves have the effect of lowering risks, the Reserve Factor should be set higher for assets with greater volatility and higher risks, and lower for assets with less volatility and lower risks.

Based on the above importance, I think we should re-evaluate our Reserve Factor.

Feel free to have your say!

Are you trying to move the reserve factor higher or lower?

I think we should build a standardization model of the reserve factor, instead of arbitrarily deciding the reserve factor to reduce risk.

Hope to determine a mechanism to reassess whether our current 15% reserve factor is reasonable.

Go ahead, the Reserve Factor should play a bigger role in the Wing project.
Different assets‘ reserve factor should be different.

So i’m totally agree with Chris.

I have played a lot of DeFi Lending projects, and generally know the relevant information about Reserve Factor.

Reserve Factor is also important in the business model of project. Sufficient reserves allow project to better grow the project and give back to Token holders. However, an excessively high Reserve Factor will make the project unattractive. Thus, It is very necessary to set a reasonable reserve factor to balance short-term and long-term benefits.

What is the role of Wing’s reserves?

Wing’s reserves are used to support ecosystem development, reward contributors, stabilize the market, and lower risks.

Currently, in accordance with WIP-04, 50% of the reserves are being used to buy back and burn WING each month until 1 million WING have been bought back and burnt.

It is more reasonable to establish the standardization reserve factor model based on the previously established Wing’s assets risk model.

Safety is always the most important thing.

We should lower Reserve Factor for stablecoin which have no Risk on price fluc

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we have established a standardized model of Wing’s Reserve Factor. The model utilizes Wing’s Assets Risk Model to determine the volatility and risks of each asset.

Calculated by Wing’s Reserve Factor Standardization Model, the Reserve Factor of each asset should be as follows:

Pools Assets Reserve Factor After Adjustment
Wing Flash Pool (Ethereum) USDT 10%
Wing Flash Pool (Ethereum) USDC 10%
Wing Flash Pool (Ethereum) ETH 15%
Wing Flash Pool (Ethereum) WBTC 15%
Wing Flash Pool (Ethereum) DAI 15%
Wing Flash Pool (Ethereum) UST 20%
Wing Flash Pool (Ethereum) pONT 20%
Wing Flash Pool (Ethereum) oneWING 20%
Wing Flash Pool (Ethereum) pWING 30%
Wing Flash Pool (Ethereum) xICHI 30%
Wing Flash Pool (OKExChain) USDT 10%
Wing Flash Pool (OKExChain) USDC 10%
Wing Flash Pool (OKExChain) ETHK 15%
Wing Flash Pool (OKExChain) BTCK 15%
Wing Flash Pool (OKExChain) DAIK 15%
Wing Flash Pool (OKExChain) DOTK 20%
Wing Flash Pool (OKExChain) LINKK 20%
Wing Flash Pool (OKExChain) OKT 20%
Wing Flash Pool (OKExChain) UNIK 20%
Wing Flash Pool (OKExChain) OKB 25%
Wing Flash Pool (OKExChain) SUSHIK 25%
Wing Flash Pool (OKExChain) WING 30%
Wing Flash Pool (Ontology) pUSDT 10%
Wing Flash Pool (Ontology) pUSDC 10%
Wing Flash Pool (Ontology) pETH 15%
Wing Flash Pool (Ontology) prenBTC 15%
Wing Flash Pool (Ontology) pwBTC 15%
Wing Flash Pool (Ontology) pDAI 15%
Wing Flash Pool (Ontology) pSUSD 20%
Wing Flash Pool (Ontology) ONTd 20%
Wing Flash Pool (Ontology) pNEO 20%
Wing Flash Pool (Ontology) pUNI 20%
Wing Flash Pool (Ontology) pYFI 25%
Wing Flash Pool (Ontology) ONG 25%
Wing Flash Pool (Ontology) WING 30%
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Totally agree with you. Generally 10%

Lowering the reserve factor of the assets will attract more users to participate in Wing.