#434
Karura Risk Parameter Change Proposal - May 2023
Democracy
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Tabled

Proposal

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

  • Decrease Debt Ceiling of KSM from 25M to 10M
  • Decrease Debt Ceiling of LKSM from 5M to 2M
  • Decrease Debt Ceiling of KAR from 3M to 1M

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.

Edited
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Hash
0x2ddf80fcb36468754e0529fe9f2f5ef01b478f08b875e2ff36dc59c8e1728131
Metadata
Hash
0x841b7af9d015b6b1c6fe042e9712a62f27ae581d57d7d0e8ad869f38752654a7
Threshold
SimpleMajority
Call
Table
Json
callIndex0x0300
sectionutility
methodbatch
args
calls
0
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenKSM
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenaltyNoChange
requiredCollateralRatioNoChange
maximumTotalDebitValue
newValue10000000000000000000
1
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenLKSM
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenaltyNoChange
requiredCollateralRatioNoChange
maximumTotalDebitValue
newValue2000000000000000000
2
callIndex0x6802
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenKAR
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenaltyNoChange
requiredCollateralRatioNoChange
maximumTotalDebitValue
newValue1000000000000000000
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