Proposal #24
Risk Parameter Change
Democracy
0 Comments
Tabled

Description

Risk parameters are best adjusted according to market conditions to balance insolvencies, liquidations, and capital efficiency. Setting minimum collateral ratios at appropriate levels can provide adequate guardrails for users without restricting them too heavily. Raising the minimum collateral ratio can prevent users from taking on additional risk in complicated market conditions and token price volatility. Liquidation is an important tool for managing systemic risk and encouraging responsible borrowing. Higher liquidation fees can reduce insolvency risk by encouraging borrowers to be more cautious and responsible when taking on debt, to maintain adequate levels of collateral and avoid taking on excessive risk.

Proposal

The following suggestion is proposed to optimize for risk and capital efficiency for Acala.

  • Increase Minimal Collateral Ratio of ACA from 2.1 to 2.15
  • Increase Liquidation Fee from 15% to 18%
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Metadata
hash
0xd9ce36fc6fee6aec99a40a58796af54b65fc2f5786d19c085a9e7d1f067658de
deposit
1000 ACA
proposer
Call
Table
Json
callIndex0x0302
sectionutility
methodbatchAll
args
calls
0
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenACA
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenalty
newValue180000000000000000
requiredCollateralRatio
newValue2150000000000000000
maximumTotalDebitValueNaN
1
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenDOT
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenalty
newValue180000000000000000
requiredCollateralRatioNoChange
maximumTotalDebitValueNaN
2
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenLDOT
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenalty
newValue180000000000000000
requiredCollateralRatioNoChange
maximumTotalDebitValueNaN
3
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
liquidCrowdloan13
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenalty
newValue180000000000000000
requiredCollateralRatioNoChange
maximumTotalDebitValueNaN
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