This is less of a proposal and more of a discussion topic. I am interested in hearing thoughts on adjustments to the origination fees
Origination fees are currently 1% of the borrowed amount. This translates to the following implied interest rates based on the length of time you hold the debt:
6 months = 2%
1 year = 1%
2 years = 0.5%
4 years = 0.25%
These interest rates are low compared to MakerDAO (currently at 2% ongoing interest rates) plus we have BALN rewards currently, but we can still inch them a bit closer if the DAO is interested. If we lower collateral requirements, now would be a good time to also increase fees. I would be open to changing the fee to 1.75% or lower (MakerDAO recently lowered rates from 3.5% to 2% for ETH collateral). Since Balanced has an upfront fee, if we get too close to 2%, it becomes unfavorable to borrow from Balanced unless you are holding the debt for 1+ years.