Only the pool for borrowing and lending SOL tokens would be affected by the proposed changes.
The governing body that manages decentralized crypto exchange Mango Markets is voting on boosting the interest rates the Solana-based protocol pays to lenders of its most popular tokens.
All tokens pools at 50% utilization – meaning half of user-supplied tokens are being lent out – would offer 1.8% interest under the proposal, an increase from the existing rate of zero. That utilization level is also lower than the current 70% at which effective interest rates increase or decrease based on how strained a pool has become.
The proposed changes stem from concerns that Mango Markets’ current measures might falter if utilization rates climb too high – a situation that would prevent lenders from withdrawing tokens or borrowers from taking new positions. By paying higher rates at lower utilization levels, Mango is looking to better retain existing deposits and woo newcomers.
The organization’s legal troubles and waning energy for Solana-based decentralized finance have put a damper on trader demand for borrowing and lending tokens. Only Mango’s SOL pool had a high enough utilization rate (78%) at press time to be affected by the changes, Mango’s statistics show. That pool had just 264 tokens (roughly $5,500) available to borrow.
The motion would take effect three days after its passage. It is being considered by MNGO token holders in a vote that ends Wednesday. At press time it had unanimous support, but had not reached the necessary quorum to pass.
Proposal author Christian Kamm, a contributor to Mango Markets, did not immediately return a request for comment.