Upgrade cDai Interest Rate Model
01Summary
Upgrade cDAI interest rate model to allow governance to adjust 4 parameters without code changes. Key changes: APY at max utilization increases from 15% to 25%, kink moves from 90% to 80% utilization with APY increasing from 2% to 4%. Base rate stays at 0%.
- Type
- contract upgrade
Key changes
- APY at 100% utilization increased from 15% to 25%(high)
- Utilization rate kink moved from 90% to 80%(high)
- APY at kink increased from 2% to 4%(medium)
- New interest rate model enables no-code parameter updates by governance(high)
- Base rate at 0% utilization remains unchanged at 0%(low)
Generated by Kvorum
02Description
Upgrade cDai Interest Rate Model
Summary
Over the past several weeks, Dharma (in collaboration with arr00) has written and tested a new version of JumpRateModel and integrated it into an updated interest rate model for cDAI. This updated interest rate model allows for the following parameters to be updated by governance proposal (ie. no-code updates):
- Interest Rate at 0% Utilization
- Interest Rate at 100% Utilization
- The Utilization % at which the model “kinks”
- Interest Rate at the “kink”
We believe this model can form the basis for the interest rate models of other cAssets, including cUSDC and cUSDT, which we believe should have models of a similar nature. We encourage other community members to adapt this code to do so, and will enthusiastically support proposals to update the interest rate models of other cAssets to models of this format.
This proposal was discussed in the governance forum prior to submission.
Specifics
- New cDAI Interest Rate Model: Deployed Contract
- New cDAI Interest Rate Model: Github Link to PR
- Interest Rate Model Parameter Changes:
- Change APY at 100% utilization:
- Current: 15%
- New: 25%
- Change the Utilization Rate that defines the “kink”:
- Current: 90%
- New: 80%
- Change APY at “kink”:
- Current: 2%
- New: 4%
- No change to Base Rate per Block (APY at 0% utilization):
- Current: 0%
- New: 0%
- Change APY at 100% utilization:
Note: all rates are still “on top of” the DAI interest rate parameters set by MakerDAO governance.
Image of Proposed cDAI Interest Rate Model

03Mismatch analysis
The proposal contains a single on-chain action: cDAI's admin function _setInterestRateModel is called with the address 0xfeD941d39905B23D6FAf02C8301d40bD4834E27F. This exactly matches the 'Deployed Contract' address referenced in the description's Specifics section, confirming the target contract and action (upgrading the interest rate model) align with the prose. The description also lists specific parameter changes (APY at 100% utilization, kink point, APY at kink) that are meant to be baked into the new deployed contract's constructor rather than passed as calldata arguments in this governance action — this is standard practice for interest rate model upgrades, since the new model is a separately deployed, immutable contract. Because the calldata only contains the pointer-swap call and not the constructor parameters, we cannot directly verify the specific percentage changes (15%->25%, 90%->80%, 2%->4%) from the calldata alone; this is a common and expected omission for this proposal type, not a red flag, so it does not constitute a discrepancy under the 'legitimate summarization' guidance. No mismatched targets, no extra or missing high-level actions were found. Confidence is medium rather than high because the exact numeric parameters embedded in the deployed model contract could not be independently confirmed via the decoded action alone, though the target and action name are consistent with the description.'} }.replace('replace','')discrepancies:[]
Generated by Kvorum
04Actions
- Target
- 0x5d3a…3643
- Value
- 0 wei
- Function
- _setInterestRateModel(address)
- Arguments
{ "0": "0xfeD941d39905B23D6FAf02C8301d40bD4834E27F" }- Calldata
05Tally
Summed from votes
06Voters
| Voter | Choice | % of total | Rationale | ||
|---|---|---|---|---|---|
| ED0xed40…08ff | For | 325.9K | 0.00% | — | 6y ago |
| 810x8169…9806 | For | 101K | 0.00% | — | 6y ago |
| 5B0x5b97…66c2 | For | 100.1K | 0.00% | — | 6y ago |
| 540x54a3…e189 | For | 100K | 0.00% | — | 6y ago |
| 7E0x7e4a…19fa | For | 100K | 0.00% | — | 6y ago |
| 960x9695…893e | For | 99.2K | 0.00% | — | 6y ago |
| D00xd061…1fb1 | For | 28K | 0.00% | — | 6y ago |
| E50xe5b5…4b03 | For | 15K | 0.00% | — | 6y ago |
| A80xa8c6…3985 | For | 10K | 0.00% | — | 6y ago |
| 2B0x2b38…bf33 | For | 5K | 0.00% | — | 6y ago |
| DAdakeshi.eth0xe3c9…6b21 | For | 5K | 0.00% | — | 6y ago |
| B80xb8a6…6406 | For | 5K | 0.00% | — | 6y ago |
| 100x10aa…050e | For | 298.6 | 0.00% | — | 6y ago |
| A20xa255…7b17 | For | 200.9 | 0.00% | — | 6y ago |
| FC0xfc07…4682 | For | 118.4 | 0.00% | — | 6y ago |
| H0h0neybad9er.eth0x26a2…4cbe | For | 70.1 | 0.00% | — | 6y ago |
| 7F0x7f84…4d0b | For | 39.2 | 0.00% | — | 6y ago |
| 040x0489…14a9 | For | 18.9 | 0.00% | — | 6y ago |
| 890x897e…c2dc | For | 15 | 0.00% | — | 6y ago |
| AB0xabe4…5fcd | For | 13 | 0.00% | — | 6y ago |
| 860x8692…168d | For | 12.1 | 0.00% | — | 6y ago |
| EE0xeecf…93b4 | For | 9.2 | 0.00% | — | 6y ago |
| 990x994e…bfd9 | For | 5.8 | 0.00% | — | 6y ago |
| 7D0x7de0…a044 | For | 5.5 | 0.00% | — | 6y ago |
| A80xa8f9…478f | For | 5.4 | 0.00% | — | 6y ago |
| 030x03f0…7618 | For | 4.6 | 0.00% | — | 6y ago |
| 580x58bb…1699 | For | 3.9 | 0.00% | — | 6y ago |
| D30xd353…ccc2 | For | 3.3 | 0.00% | — | 6y ago |
| 5B0x5b91…a16f | For | 2.8 | 0.00% | — | 6y ago |
| 510x5169…15ea | For | 2.7 | 0.00% | — | 6y ago |
| D40xd4c8…4523 | For | 2.7 | 0.00% | — | 6y ago |
| 850x8541…ca76 | For | 1.8 | 0.00% | — | 6y ago |
| CF0xcf29…e1e1 | For | 1.7 | 0.00% | — | 6y ago |
| 200x2071…c488 | For | 1.5 | 0.00% | — | 6y ago |
| E90xe93f…f2ff | For | 1.5 | 0.00% | — | 6y ago |
| A60xa656…c544 | For | 1.4 | 0.00% | — | 6y ago |
| 3D0x3d4a…f794 | For | 1.1 | 0.00% | — | 6y ago |
| AE0xae6d…d8a1 | For | 1.1 | 0.00% | — | 6y ago |
| 4D0x4d12…392b | Against | 0.9 | 0.00% | — | 6y ago |
| E50xe5f3…3069 | For | 0.8 | 0.00% | — | 6y ago |
| 8D0x8d07…a265 | For | 0.8 | 0.00% | — | 6y ago |
| 190x19bf…3fad | For | 0.5 | 0.00% | — | 6y ago |
| B00xb05a…c842 | For | 0.5 | 0.00% | — | 6y ago |
| 2A0x2a4e…f008 | For | 0.4 | 0.00% | — | 6y ago |
| D90xd998…2e4c | Against | 0.4 | 0.00% | — | 6y ago |
| 750x753c…ef47 | For | 0.3 | 0.00% | — | 6y ago |
| 690x695c…57ee | Against | 0.3 | 0.00% | — | 6y ago |
| 410x4196…bc60 | For | 0.2 | 0.00% | — | 6y ago |
| 850x8534…1485 | Against | 0.2 | 0.00% | — | 6y ago |
| 930x9310…7601 | For | 0.2 | 0.00% | — | 6y ago |
07Forum
- Dharma to Submit Update to cDAI Interest Rate Model ↗discourse · high confidence
Arguments for
- A governance-upgradable interest rate model allows the community to adjust key parameters (base rate, kink rate, kink utilization, max rate, and DSR coupling) without requiring new contract deployments.— brendan_dharma, rleshner, arr00, dakeshi
- The proposed parameter changes (raising max APY from 15% to 25%, lowering kink from 90% to 80%, raising kink rate from 2% to 4%) bring cDAI rates more in line with other markets.— rleshner
- Automatic DSR coupling ensures Compound's rates remain competitive with MakerDAO's DAI Savings Rate system when DSR is non-zero.— brendan_dharma
- The model can serve as a template for upgrading other cAsset interest rate models like cUSDC and cUSDT to a standardized, governance-upgradable format.— brendan_dharma
Arguments against
None surfaced.
Unresolved concerns
- Whether a formal audit of the interest rate model contract should be budgeted and completed before execution.— Itamar
- Clarity on exactly how the DSR toggle mechanism works and what conditions trigger its on/off state.— dakeshi
Notable participants
- brendan_dharmaProposer who authored, tested, and specified the updated cDAI interest rate model and governance-upgradable framework.
- rleshnerCore contributor who endorsed the proposal and raised concerns about immediate rate increases and future decoupling from Maker.
- arr00Community member who verified the contract bytecode and publicly supported the proposal.
- dakeshiCommunity member who sought clarification on the DSR coupling toggle feature.
- 0ageCore contributor who provided technical clarification on the DSR toggle and the new JumpRateModel architecture.
- ItamarCommunity member who raised the concern that the contract upgrade should be formally audited before execution.
Generated by Kvorum
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