### Gauntlet IR Curve Recommendation for FRAX on Moonbeam

## Simple Summary
A proposal to make 1 IR curve adjustments for FRAX:
| FRAX IR Parameters | Current | Recommended |
| --------------- | ------- | ----------- |
| BASE | 0 | 0 |
| Kink | 0.8 | 0.8 |
| Multiplier | 0.05 | 0.01 |
| Jump Multiplier | 2.5 | 0.01 |

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### IR Curve Analysis
Gauntlet recommends lowering the interest rate (IR) curve as a measure to alleviate the existing liquidity constraints in the FRAX liquidity pool. This proposed adjustment would result in a reduction of the Borrow Annual Percentage Yield (APY) to 1% when the pool is fully utilized at 100%.


As shown in the below chart, the recent increase in Borrow Rate APY has not significantly impacted full utilization of the FRAX liquidity pool, as both suppliers and borrowers have demonstrated counterproductive behavior in response to the elevated APY rates.

A decrease in Borrow APY would help prevent a worsened liquidity crunch, especially with FRAX borrowing being disabled at this time.