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