this isn't meant to be polished research — just a place to track ideas i keep circling back to. things i don't fully understand yet, but want to.

adaptive interest rate models

i've become fascinated with how control theory can be applied to DeFi protocols. the idea that interest rates can dynamically adjust based on market conditions rather than following static formulas opens up possibilities for more efficient capital markets. two papers i came across were this one on data-driven adaptive protocols and this study on optimal interest rates which have an interesting approach of using short-term controllers for stability paired with long-term planners for parameter optimization, but it's not feasible onchain yet so just theory, one of them ends up proving that morpho's adaptive rate is quite good when compared to a neural net finding optimal utilization path.