ADR 14: Reduce Saver Yield Synth Target to Match POL Target

Changelog

• 04/04/2024: Created

Status

Proposed

Context

The following are the relevant mimir values at the time of writing:

MaxSynthsForSaversYield=6000
POLTargetSynthPerPoolDepth=3000
POLBuffer=2000

These values result in savers receiving positive yield while POL is simultaneously depositing into the pool to lower the synth utilization (when it is over 50%). Suggesting setting the following:

MaxSynthsForSaversYield=5000

While more complicated discussions around saver ejections and synth backstop are pending, this is a simple change to enact a small reduction in synth utilization over time (even if savers do not respond to the reduced yield). Additionally, it avoids the current state where a small share of the POL in effect subsidizes the saver yield (increasing synth utilization), while it is trying to reduce it.

Decision

TBD

Consequences

Savers will not receive yield on pools where synth utilization is over 50% (above which POL currently deposits).