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#23
Gauntlet Risk Parameter Recommendation (4/28/2022)
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Gauntlet makes the following recommendations to optimize risk and capital efficiency for Karura:

Karura Recommendations:

  • We recommend lowering KSM’s minimum collateral ratio from 1.6 to 1.5.

Rationale:

Since our last recommendations, VaR has decreased from $3.0M to $2.8M. KAR’s VaR has decreased from $1.4M to $1.1M, while LKSM’s VaR has remained flat at $1.6M. KSM’s VaR rose slightly from $5k to $6k. With KSM’s VaR remaining so close to zero, our simulation engine shows that the capital efficiency gain by allowing users to take on KSM debt at a lower ratio more than offsets the slight increase in market risk.

Dashboard:

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

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Metadata
Proposer
Index
23
Threshold
2
Hash
0x43e6b87fed1d276741ef266a989d357d2015cdc2dba2c252f6a836827445ed3d
Call
Table
Json
callIndex0x6803
sectioncdpEngine
methodsetCollateralParams
args
currencyId
tokenKSM
interestRatePerSecNoChange
liquidationRatioNoChange
liquidationPenaltyNoChange
requiredCollateralRatio
newValue1500000000000000000
maximumTotalDebitValueNaN
TimelineLatest activity undefined
2022-05-02 05:21:00
Proposed
setCollateralParams
2/2
Aye(2)
Nay(0)
2022-05-02 05:21:24
Vote
2022-05-02 06:32:30
Vote
2022-05-02 06:33:30
Closed
2022-05-02 06:33:30
Approved
2022-05-02 06:33:30
Executed
Result
Succeed
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