Abracadabra has proposed an adjustment of interest rates for CRV collateralized loans.

BlockBeats reported on August 2nd that the algorithmic stablecoin MIM issuer Abracadabra Community has released a new proposal to adjust interest rates for CRV cauldrons. The proposal suggests that, given the protocol's current high CRV risk exposure, collateral-based interest rates be applied to two CRV cauldrons. As a result, the interest rate for CRV collateral will include a benchmark rate, which depends on the sum of the outstanding principal of the two CRV cauldrons. The actual interest rate will be generated by combining the benchmark rate and the interest rate multiplier, which depends on the collateral ratio of the cauldrons. The proposal's effect is that all interest will be deducted directly from the cauldrons' collateral and immediately transferred to the protocol's treasury to increase the DAO's reserve ratio and thus reduce DAO risk related to CRV liquidity conditions.