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  • Notional V2 Governance Parameters
  • Overview of governance parameters
    • Current parameters
  • Liquidity pools
    • Introduction
    • Max market index
    • Anchor rates
    • Scalar rates
    • Maximum market proportion
  • Collateral assets & liquidations
    • Introduction
    • Cash
    • fCash
    • Liquidity tokens
    • nTokens
    • Settlement
  • nTokens
    • Introduction
    • Deposit shares
    • Leverage thresholds
    • fCash residuals
  • Active Maturities
    • Tenors
    • Idiosyncratic fCash
  • fCash Valuation
    • Interest Rate Oracles
    • fCash Valuation Curve
  • Fees & incentives
    • Trading fees
    • Incentives
  • Notional
  • Analytics Dashboard
  • Blog
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  1. Liquidity pools

Maximum market proportion

The maximum market proportion prevents the market from reaching extremely high interest rates because of an excessively large proportion (high amounts of fCash relative to cash). The maximum market proportion thus effectively defines a maximum tradable interest rate for each liquidity pool.

Selected parameters

We selected a maximum market proportion of 0.99 which implies that the maximum possible tradable interest rates is ~15% for stablecoin and ~11% for crypto asset pools. The 0.99 proportion allows for rates to get sufficiently high in order to attract liquidity providers or lenders if a liquidity pool's proportion is too high.

Cash groups

Maximum market proportion

All

0.99

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Last updated 2 years ago

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