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#14
Lowering KAR Collateral Ratio
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Gauntlet makes the following recommendations to optimize for risk and capital efficiency for Karura:

Summary:

  • Reduce the minimum collateralization ratio of KAR from 1.9 to 1.8.

Rationale:

Since last week, KSM volatility has increased from 86% to 98% and the $ADV decreased from $30.7M to $28.6M. The kUSD minted decreased from $9.0M to $8.9M. The Value at Risk increased from $0.30M to $2.2M. Breaking down the VaR further, all of it comes from the possibility of insolvent liquidations of KSM, not KAR. Our platform's analysis shows that we can safely take a more aggressive stance with respect to KAR to raise capital efficiency while keeping risks within acceptable limits.

Dashboard:

The community should use Gauntlet’s Risk Dashboard to better understand the updated parameter suggestions and general market risk in Karura.

https://acala.discourse.group/t/gauntlet-risk-parameter-recommendations-lowering-kar-collateral-ratio/562

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Metadata
Proposer
Index
14
Threshold
2
Hash
0xdd4dd0e91d888495ab40a66ef22f7668aaa5f687780429a841df04a293b08674
Call
Table
Json
callIndex0x6803
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenKAR
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenaltyNoChange
requiredCollateralRatio
newValue1800000000000000000
maximumTotalDebitValueNaN
TimelineLatest activity undefined
2022-01-24 02:22:06
Proposed
setCollateralParams
2/2
Aye(2)
Nay(0)
2022-01-24 02:22:42
Vote
2022-01-24 03:38:54
Vote
2022-01-24 03:39:06
Closed
2022-01-24 03:39:06
Approved
2022-01-24 03:39:06
Executed
Result
Succeed
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