# IRM Issue of the Gaunlet Resolv USDC Vault

**URL:** <https://forum.morpho.org/t/irm-issue-of-the-gaunlet-resolv-usdc-vault/1359>\
**Category:** Vaults\
**Created:** [January 9, 2025, 11:20am UTC](https://forum.morpho.org/t/irm-issue-of-the-gaunlet-resolv-usdc-vault/1359 "2025-01-09T11:20:09Z")\
**Posts on this page:** 2\
**Page:** 1

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**Author:** ![gnome](https://avatars.discourse-cdn.com/v4/letter/g/87869e/32.png) [@gnome](https://forum.morpho.org/u/gnome)\
**Post date:** [January 9, 2025, 11:20am UTC](https://forum.morpho.org/t/irm-issue-of-the-gaunlet-resolv-usdc-vault/1359/1 "2025-01-09T11:20:09Z")

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The current interest rate model of Resolv USDC Vault sucks.

With more than 13.5M USDC supplied and 100% of which has been borrowed, the supply rate just caps in 35.7%. It doesn’t make any sense for lenders, I would say the current IRM needs to be updated. Probably at least 80% supply apy for a 100% utilization makes _some_ sense.

[[Album] imgur.com ![](https://europe1.discourse-cdn.com/flex013/uploads/morpho/original/1X/1edf2b28163be641532cae96c1635be850e57bd6.jpeg "imgur.com") ](https://imgur.com/a/MqXR2ed)

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**Author:** ![albist](https://dub1.discourse-cdn.com/flex013/user_avatar/forum.morpho.org/albist/32/739_2.png) [@albist](https://forum.morpho.org/u/albist)\
**Post date:** [January 9, 2025, 12:11pm UTC](https://forum.morpho.org/t/irm-issue-of-the-gaunlet-resolv-usdc-vault/1359/2 "2025-01-09T12:11:48Z")

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Hello,  
Interest Rate Model is not at Vault level, but at market level. Each Morpho market has its own Interest Rate Model (IRM).  
Currently, the only IRM is the AdaptiveCurveIRM. You can read more about it in the documentation [here](https://docs.morpho.org/morpho/concepts/irm).

You can see that [the Resolv USDC vault](https://app.morpho.org/vault?vault=0x132E6C9C33A62D7727cd359b1f51e5B566E485Eb&network=mainnet) currently allocates to 2 markets (USR/USDC & RLP/USDC) that have a high utilization rate (close to 100%).

 ![Screenshot 2025-01-09 at 13.02.51](https://europe1.discourse-cdn.com/flex013/uploads/morpho/original/1X/2bab27a9f9d386372dd8bbba73259de8d1c753d1.png)

TL;DR  
**There is no cap at interest rate level.** If the underlying markets of this vault continue to have an utilization rate above 90%, their interest rates will continue to increase, and by consequence the rate of the Vault will also increase.  
This is thanks to the Adaptive Mechanism:

 ![curve-mechanism-02](https://europe1.discourse-cdn.com/flex013/uploads/morpho/original/1X/8523e0d0d63a01f30423395845a06dd3b67bd537.png)

I remain available in the Morpho discord server if you have any more question or concerns:

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