{"aip":27,"title":"Lower Reserve Factor for AMPL","status":"Proposed","author":"Ahmed Naguib Aly (@ahnaguib), Nithin Ottilingam (@nithinkrishna), Brandon Iles (@brandoniles)","shortDescription":"Lower AMPL reserve factor","discussions":"https://governance.aave.com/t/arc-raise-ampl-maximum-interest-rate/4996","created":"2021-07-27T00:00:00.000Z","requires":"AIP-26","preview":"## Simple Summary\n\nThis is a sibling proposal to AIP-26 and proposes …","basename":"AIP-27","description":"\n\n## Simple Summary\n\nThis is a sibling proposal to AIP-26 and proposes lowering the AMPL reserve factor from 20% to 10%.\n\n## Motivation\n\nFollowing [API-12](https://governance.aave.com/t/proposal-add-support-for-ampl/854/8), [AMPL borrowing & depositing](https://app.aave.com/reserve-overview/AMPL-0xd46ba6d942050d489dbd938a2c909a5d5039a1610xb53c1a33016b2dc2ff3653530bff1848a515c8c5) went live on the AAVE v2 market [date=2021-07-24 time=20:22:00 timezone=\"UTC\"]. Since then, there has been a near 100% utilization rate of deposited assets.\n\nThe reserveFactor allows the FeeCollector smart contract to receive part of the interest paid by takers of liquidity. Each asset on Aave has its own reserveFactor.\n\nAIP-26 raises the maximum borrowing rate for AMPL and would result in more fees coming into the system. This AIP proposes (in tandem) lowering the AMPL reserve factor from 20% to 10%. This shares more of the revenue with AMPL suppliers to further incentivize deposits.\n\n# Relevant Links\n\n- AIP-12 AMPL Listing: https://app.aave.com/governance/18-QmZZ7JqvEx99u7dMNFPBBnew3BgepLCmXRMrNi8y5ndpXn\n- AIP-26: https://governance.aave.com/t/arc-raise-ampl-maximum-interest-rate/4996\n- Aavenomics: https://docs.aave.com/aavenomics/\n\n## Implementation\n\ncall setReserveFactor(0xd46ba6d942050d489dbd938a2c909a5d5039a161, 1000)\n\nOn the lending pool configurator contract\n\nhttps://etherscan.io/address/0x311bb771e4f8952e6da169b425e7e92d6ac45756\n\n## Copyright\n\nCopyright and related rights waived via [CC0](https://creativecommons.org/publicdomain/zero/1.0/).\n"}