Background

https://acala.discourse.group/t/acala-risk-parameter-change-proposal-may-2023/2096

Proposal

The following suggestion is proposed to optimize for risk management for Acala.

• Decrease Debt Ceiling of DOT from 50M to 20M
• Decrease Debt Ceiling of LDOT from 5M to 2M
• Decrease Debt Ceiling of LCDOT from 6M to 2M
• Decrease Debt Ceiling of ACA from 6M to 1.5M

Risk parameters are best adjusted according to market conditions to balance insolvencies, liquidations, and capital efficiency. A lower debt ceiling helps mitigate the risk associated with excessive debt exposure and enable the protocol to remain solvent and resilient in volatile market conditions.