#23
Gauntlet Risk Parameter Recommendation (4/28/2022)
Executed
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
callIndex | 0x6803 | ||||||||||||||||
section | cdpEngine | ||||||||||||||||
method | setCollateralParams | ||||||||||||||||
args |
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TimelineLatest activity undefined
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