The Direct Deposit Module interfaces with third party lending protocols to enable a maximum variable borrow rate for selected assets. Maker Governance is able to pick a target variable borrow rate, and the module will automatically deposit/remove liquidity to ensure that target rate is hit.
Below are the configurable parameters for the Aave DAI D3M:
tau [seconds] - The expiry for when bad debt is sent to the vow debt queue. This must be set during initialization to enforce a deadline for when this module is considered to be in a failure mode where no more liquidity is available in the pool to unwind. Unwinding can still occur after this period elapses.
bar [ray] - The target borrow rate on Aave for the DAI market. This module will aim to enforce that borrow limit.
A permissionless exec() function exists which will perform all necessary steps to enforce the maximum borrow rate to within the available liquidity and debt ceiling constraints. exec() will need to be called on a somewhat regular basis to keep the system running properly. Upon unwinding interest will automatically be collected, but you can also permissionlessly call reap() to pull in all collected interest as well.
Any stkAave that is accured can be permissionlessly collected into the pause proxy by calling collect(address[], uint256).