#21
Gauntlet Risk Parameter Recommendation: Lower KSM Collateral Ratio
Executed
Gauntlet makes the following recommendations to optimize risk and capital efficiency for Karura:
Karura Recommendations:
- We recommend lowering the minimum collateral ratio for KSM from 1.65 to 1.6.
Rationale: Since our last recommendations, Value at Risk (VaR) has remained at $1.7M. KAR’s VaR fell from $272k to $233k, while LKSM’s VaR rose from $1.4M to $1.5M. KSM’s VaR remains close to $0 despite having lowered its liquidation ratio twice last month. We recommend lowering the KSM collateral ratio so that users can mint more KSM-backed aUSD, which our simulations show has a low likelihood of increasing insolvency potential.
Dashboard:
The community should use Gauntlet’s Risk Dashboard to understand better the updated parameter suggestions and general market risk in Karura.
Edited
Reply
Up
Votes2/2
Aye
Aye
This vote has been closed.
Metadata
Proposer
Index
21
Threshold
2
Hash
0x4627fc52da32b2e60904bfa5b390db12490d7ca00b1a3ddbf7b697d784ee09b3
Call
Table
Json
callIndex | 0x6803 | ||||||||||||||||
section | cdpEngine | ||||||||||||||||
method | setCollateralParams | ||||||||||||||||
args |
|
TimelineLatest activity undefined
Comments
There are no comments here