Gauntlet has given some recommendations to Acala and Karura to optimize their risk and capital efficiency. Here are the recommendations:

- Decrease the ACA liquidation ratio from 1.7 to 1.65.
- Decrease the ACA minimum collateral ratio from 2.05 to 2.0.
- Decrease the DOT minimum collateral ratio from 1.7 to 1.6.
- Increase the KSM liquidation ratio from 1.5 to 1.55.
- Increase the KSM minimum collateral ratio from 1.8 to 1.9.

These recommendations are based on the VaR (Value at Risk) of each asset. ACA is relatively safe, so its liquidation ratio can be gradually lowered to improve capital efficiency. KSM is riskier, so its liquidation ratio should be increased to reduce insolvency risk. The other assets have an optimal balance of risk and capital efficiency.

There is a chance that some users may become liquidatable when liquidation ratios are raised, but as of the most recent data, no accounts would be immediately liquidated at today's prices.

By approving this proposal, the terms of service available at gauntlet.network/tos will govern any services provided by Gauntlet.

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Gauntlet Risk Parameter Recommendation (7/27/2022)

Here are the main points from the SubSquare post about Gauntlet's recommendations for Acala and Karura:

- Gauntlet has some suggestions to make Acala and Karura safer and more efficient.
- They recommend changing some numbers related to how much cryptocurrency needs to be put up as collateral for loans.
- They also recommend changing the interest rate for one of the cryptocurrencies.
- Gauntlet thinks that these changes will not increase the risk of losing money for Acala and Karura.
- There is a small chance that some users might have to sell their cryptocurrency if these changes are made, but Gauntlet does not think this will happen.

Gauntlet Risk Parameter Recommendation (7/20/2022)

For a second-grade student:

Gauntlet is giving advice to Acala and Karura to make them safer and more efficient. They suggest changing some numbers to make things better. They want to make sure that the companies have enough money to pay for things if something goes wrong. They also want to make sure that the companies are not taking too much risk. They checked to make sure that no one will lose their money if they make these changes.

Gauntlet Risk Parameter Recommendation (7/14/2022)

Untitled - financial motion #30

For a second-grade student:

Gauntlet is giving advice to Acala and Karura to make them safer and more efficient. They suggest changing the amount of money needed to be safe when borrowing and lending different types of money. They want to make some things a little less safe and some things a little more safe. They also warn that some people might have to pay back their loans if the changes are made.

Gauntlet Risk Parameter Recommendation (6/30/2022)

Untitled - financial motion #29

For a second-grade student:

Gauntlet has some suggestions to make Acala and Karura safer and more efficient. They recommend changing the rules for how much money you need to have to borrow different types of cryptocurrency. They suggest making it easier to borrow some types of cryptocurrency and harder to borrow others. This will help make sure people don't lose too much money if the value of the cryptocurrency changes. They also say that some people might have to sell their cryptocurrency if these changes are made, but they don't think it will happen to many people.

Gauntlet Risk Parameter Recommendation (6/15/2022)

For a second-grade student:

- Gauntlet made some suggestions to help Acala and Karura be safer and more efficient.
- They suggested changing some numbers for different assets like LKSM, LCDOT, KAR, DOT, LDOT, and ACA.
- They want to make sure that the assets are not too risky and that there is enough money to cover any losses.
- They have a dashboard that people can use to see how safe the assets are.
- If people agree with these suggestions, they need to follow some rules from Gauntlet.

Gauntlet Risk Parameter Recommendation (6/9/2022)

Gauntlet has made some recommendations to improve the risk and capital efficiency of Acala and Karura. They suggest increasing the liquidation ratio for LKSM and LCDOT and decreasing it for ACA and DOT. Gauntlet's simulations show that LKSM and LCDOT have the highest market risk, while DOT and ACA have low insolvency risk. The community can use Gauntlet's Risk Dashboard to understand these recommendations and market risk in Acala.

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interestRatePerSec

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Gauntlet Risk Parameter Recommendation (6/2/2022)

Here are the main points from the SubSquare post about Gauntlet's recommendations for Karura, simplified for a second-grade student:

- Gauntlet is giving advice to Karura to help them be safer with their money.
- They suggest making a small change to how much money they need to keep in reserve.
- This change will help reduce the risk of losing money if something bad happens.
- Gauntlet has a tool called a "Risk Dashboard" that people can use to see how safe Karura is.
- It's important for the community to pay attention to these recommendations to keep Karura's money safe.

Gauntlet Risk Parameter Recommendation (5/26/2022)

Untitled - financial motion #24

For a second-grade student:

- Gauntlet gave advice to Karura to make things safer and more efficient.
- They suggested lowering the minimum amount of money needed to borrow from 1.6 to 1.5.
- This would make it easier for people to borrow money and still be safe.
- Gauntlet used a special tool to see if this was a good idea and found that it was.
- People can check a special website to learn more about this advice and how to be safe when borrowing money.

Gauntlet Risk Parameter Recommendation (4/28/2022) 

For a second-grade student:

- Gauntlet gave advice to Karura to make it safer and more efficient.
- They suggested lowering the liquidation ratio for KSM from 1.3 to 1.25.
- This will help Karura use its money better and have less chance of losing it.
- Gauntlet made simulations to see how safe Karura is and found that KSM is not very risky.
- People can use Gauntlet's Risk Dashboard to see how safe Karura is and what changes they should make.

Gauntlet Risk Parameter Recommendation (4/13/2022)

Here are the main points from the SubSquare post about Gauntlet's recommendations for Karura:

- Gauntlet is giving advice to Karura about how to manage risk and capital efficiency.
- They suggest lowering the minimum collateral ratio for KSM from 1.65 to 1.6.
- This is because the Value at Risk (VaR) has stayed the same, but the VaR for KAR has gone down while the VaR for LKSM has gone up.
- By lowering the KSM collateral ratio, users can create more KSM-backed aUSD without increasing the risk of insolvency.
- The community can use Gauntlet's Risk Dashboard to learn more about these recommendations and market risk in Karura.

Gauntlet Risk Parameter Recommendation: Lower KSM Collateral Ratio

For a second-grade student:

Gauntlet gave advice to Karura to make it safer and more efficient:

- They said to lower the amount of money needed to keep a loan safe.
- They also said to lower the amount of money needed to start a loan.
- They did this because they found out that Karura was less risky than before.
- They have a special tool called a "Risk Dashboard" to help people see how safe Karura is.
- People should use this tool to understand how to make Karura even better.

Gauntlet Risk Parameter Recommendations: Changes to KSM Parameters

Karura is a platform that needs to manage risk and capital efficiency. Gauntlet has made some recommendations to help with this. Here are the main points:

- They suggest lowering the stability fee for KAR from 3% to 2.75%.
- They recommend lowering the liquidation ratio for KSM from 1.4 to 1.35.
- They suggest lowering the minimum collateral ratio for KSM from 1.8 to 1.7.
- They explain that KSM has low risk, so they suggest making changes to improve capital efficiency.
- They suggest using Gauntlet's Risk Dashboard to understand the updated suggestions and market risk.

Gauntlet Risk Parameter Recommendations: Changes to KAR and KSM Parameters

Untitled - financial motion #18

Here are the main points about changes in Karura's risk parameters:

- The minimum collateral for KAR has been increased from 1.8 to 1.9, and for LKSM from 2.0 to 2.1.
- The liquidation ratio for KAR has been increased by 1%, and for LKSM by 2%.
- These changes will be repeated every 2250 blocks for a total of 5 times.
- The reason for these changes is to reduce the risk of insolvency for both KAR and LKSM due to high market volatility.
- Gauntlet has provided recommendations based on economic simulations to optimize for risk and capital efficiency.

Recommendations: Raising Liquidation Ratios and Collateral Ratios

For a second-grade student:

- Karura is a place where people can borrow and lend digital money.
- A company called Gauntlet looked at the risks and suggested some changes to make it safer and more efficient.
- They suggested that people who borrow one type of digital money should have more of another type of digital money to keep it safe.
- They also suggested that the amount of money needed to be safe for one type of digital money can be lowered.
- People can see how safe Karura is by looking at Gauntlet's Risk Dashboard.

Risk Parameter Update for LKSM and KSM

For a second-grade student:

- Gauntlet is giving advice to Karura to make it safer and more efficient.
- They suggest raising the minimum amount of money people need to have as collateral to borrow money.
- This is because there is a risk that people might not be able to pay back the money they borrowed.
- Gauntlet has a dashboard that people can use to see how risky it is to borrow money in Karura.
- By following Gauntlet's advice, Karura can be safer for people who want to borrow money.

Raise LKSM Collateral Ratio to 1.9

Untitled - financial motion #13

Here's a summary of the SubSquare post about Gauntlet's recommendations for Karura:

- Gauntlet has some suggestions to make Karura safer and more efficient.
- They recommend reducing the minimum collateralization ratio of KAR from 1.9 to 1.8.
- This is because KSM volatility has increased and the kUSD minted has decreased.
- Gauntlet's analysis shows that this change will raise capital efficiency while keeping risks within acceptable limits.
- The community can use Gauntlet's Risk Dashboard to understand these suggestions and market risks in Karura.

Lowering KAR Collateral Ratio 

For a second-grade student:

- Gauntlet made recommendations for Karura to be safe and efficient.
- They suggested raising the debt ceiling for KAR to 3M.
- KSM volatility decreased and the protocol is safe at its current parameters.
- KAR has a VaR of 0 and it's safe to raise the debt ceiling for future growth.
- Gauntlet posted their recommendations on the governance forum.

Financial Motions