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#8
Gauntlet Risk Parameter Recommendation (7/14/2022)
2mos ago
Executed

Gauntlet makes the following recommendations to optimize risk and capital efficiency for Acala and Karura:

Recommendations:

  • We recommend decreasing the ACA liquidation ratio from 1.75 to 1.7.
  • We recommend decreasing the ACA minimum collateral ratio from 2.2 to 2.1.
  • We recommend increasing the KSM liquidation ratio from 1.4 to 1.45.
  • We recommend increasing the LCDOT minimum collateral ratio from 2.7 to 2.8.
  • We recommend increasing the LDOT liquidation ratio from 2.25 to 2.3.
  • We recommend increasing the LDOT minimum collateral ratio from 2.8 to 2.85.
  • We recommend increasing the LKSM liquidation ratio from 1.8 to 1.85.
  • We recommend increasing the LKSM minimum collateral ratio from 2.3 to 2.4.

Rationale:

The VaR is $3.5M, and our recommendations will reduce it to $3.4M. ACA has a VaR of $1.1M. KAR has a VaR of $888k. LCDOT has a VaR of $472k. LDOT has a VaR of $334k. LKSM has a VaR of $674k. DOT and KSM both have a VaR of $0.

ACA is relatively safe from a market risk perspective, so can have its liquidation ratio gradually lowered to improve capital efficiency. KSM, LDOT, and LKSM are relatively riskier, so we recommend increasing their liquidation ratios to reduce insolvency risk. DOT, KAR, and LCDOT’s liquidation ratios are currently at an optimal balance of risk and capital efficiency.

Potential Forced Liquidations:

Whenever we raise liquidation ratios, there’s a chance that some users may immediately become liquidatable as a result. However, as of our latest data, there are no borrowers with liquidation ratios below those we have recommended.

By approving this proposal, you agree that any services provided by Gauntlet shall be governed by the terms of service available at gauntlet.network/tos.

Edited
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Metadata
Proposer
Index
8
Threshold
2
Hash
0x614dae3ecaf18bf2ae76b41b6523ad8c7cf579e446ed4898087e7fd5fe91e5ca
Call
Table
Json
callIndex0x0300
sectionutility
methodbatch
args
calls
0
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenACA
interestRatePerSecNoChange
liquidationRatio
newValue1700000000000000000
liquidationPenaltyNoChange
requiredCollateralRatio
newValue2100000000000000000
maximumTotalDebitValueNaN
1
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenLDOT
interestRatePerSecNoChange
liquidationRatio
newValue2300000000000000000
liquidationPenaltyNoChange
requiredCollateralRatio
newValue2850000000000000000
maximumTotalDebitValueNaN
2
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
liquidCrowdloan13
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenaltyNoChange
requiredCollateralRatio
newValue2800000000000000000
maximumTotalDebitValueNaN
TimelineLatest activity 2mos ago
2022-07-18 01:40:42
Proposed
2/2
Aye(2)
Nay(0)
2022-07-18 01:41:06
Vote
2022-07-18 02:24:12
Vote
2022-07-18 02:24:36
Closed
2022-07-18 02:24:36
Approved
2022-07-18 02:24:36
Executed
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