Prop 160: Raise The Minimum Utilization Threshold (Osmosis stATOM Pool)

Summary

The goal of this proposal is to modify the lending dynamics of the Osmosis stATOM short pool on the Nolus mainnet. As it stands, the pool operates with no minimum utilization threshold, allowing for unrestricted new deposits. This condition can diminish the yields for existing lenders by diluting the returns.

This proposal intends to establish a minimum utilization threshold of 65% for the pool. The key advantages of this change include:

• Enhanced Yields for Lenders: By limiting new deposits until the pool's utilization reaches 65%, lenders will potentially benefit from higher returns.

• Optimized Utilization Rates: Implementing a threshold closer to the optimal utilization rate of 70% similarly to the other markets on Nolus.

By voting "YES" on this proposal, you agree to make these adjustments to the Osmosis stATOM LPP (liquidity providers' pool) smart contract and allow the protocol to raise the minimum utilization threshold to 65%.