This VIP will update the VOLT rate to 1.44%.
The current VOLT rate oracle is a placeholder until the full market governance yield and accounting system is live. That system will allow algorithmic adjustment of the VOLT rate without any direct human input. In the interim, governance can manually change the VOLT rate on mainnet and Arbitrum. This requires some effort and expense, so it is undesirable to change the rate more often than needed until the replacement system is ready.
The current VOLT oracle implementation has a granularity of 12 bps in the annual rate.
The current VOLT rate of 0.6% was set based on the trailing one month average Aave DAI rate. Now that Compound v2 has been integrated as Volt’s first yield venue, data from Compound will be used to set the new VOLT rate. Since bottoming in July, the current Compound DAI rate has been trending upwards and is now at 1.57% inclusive of COMP rewards. 1.44% is selected based on the average yield over the past month and the granularity of the VOLT oracle.
If the VOLT rate is updated again before the release of the oracle system, it will be based on the a trailing average of the actual yield generated by the protocol in Compound and any other integrated venues.
[pull request will be added when ready]