> For the complete documentation index, see [llms.txt](https://justlend.gitbook.io/untitled/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://justlend.gitbook.io/untitled/anouncement/new-features/adjust-the-interest-model-and-the-token-borrow-cap-of-the-usdd-trx-markets.md).

# Adjust the Interest Model and the Token Borrow Cap of the USDD, TRX Markets

Proposal Details:

1\. Adjust the interest model,  Token Borrow Cap of the USDD market and the TRX market

2\. Add the market management function,  which can adjust the parameters of the  USDD market and TRX market according to the market changes, including the lending rate, Token Borrow Cap,  whether lending is allowed, and so on. In order to cope with extreme changes in the cryptocurrency market and ensure the safety of investors’ assets.

The proposal will provide users a more reliable, safer, and more efficient lending services.

#### Market Parameters: <a href="#h.7hgphd7xr6bd" id="h.7hgphd7xr6bd"></a>

The proposal adjusts the TRX, USDD market interest model as follows:

1\. The collateral factor of TRX is set at 75%, while its reserve factor is set at 10%. The TRX market adopts the same interest model as USDT does, its APY hits 10.80% when the utilization rate reaches 100%. Supply and borrow APYs at different utilization rates are as follows:

| Utilization rate | Borrow Base APY | Supply Base APY |
| ---------------- | --------------- | --------------- |
| 0%               | 2.00%           | 0.00%           |
| 10%              | 3.00%           | 0.27%           |
| 20%              | 4.00%           | 0.72%           |
| 30%              | 5.00%           | 1.35%           |
| 40%              | 6.00%           | 2.16%           |
| 50%              | 7.00%           | 3.15%           |
| 60%              | 8.00%           | 4.32%           |
| 70%              | 9.00%           | 5.67%           |
| 80%              | 10.00%          | 7.20%           |
| 90%              | 11.00%          | 8.91%           |
| 100%             | 12.00%          | 10.80%          |

2\. The collateral factor of USDD is set at 85%, while its reserve factor is set at 5%. The USDD market adopts the same interest model as USDT does, where the interest rate rockets to a higher tier when the utilization rate exceeds 80%. Its APY hits 25.46% when the utilization rate reaches 100%. Supply and borrow APYs at different utilization rates are as follows:

| Utilization rate | Borrow Base APY | Supply Base APY |
| ---------------- | --------------- | --------------- |
| 0%               | 0.00%           | 0.00%           |
| 10%              | 0.63%           | 0.06%           |
| 20%              | 1.25%           | 0.24%           |
| 30%              | 1.88%           | 0.53%           |
| 40%              | 2.5%            | 0.95%           |
| 50%              | 3.13%           | 1.48%           |
| 60%              | 3.75%           | 2.14%           |
| 70%              | 4.38%           | 2.91%           |
| 80%              | 5%              | 3.80%           |
| 90%              | 15.9%           | 13.59%          |
| 100%             | 26.8%           | 25.46%          |

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