Gauntlet makes the following recommendations to optimize for risk and capital efficiency for Karura:
Summary:
Rationale:
Since last week, KSM volatility has decreased from 138% to 101% and the $ADV decreased from $41.8M to $30.4M. The kUSD minted decreased from $10.3M to $9.8M. The Value at Risk decreased from $2.45M to $2.41M. The protocol is safe at its current parameters.
Just over 1M kUSD has been minted with KAR as collateral. KAR currently has a VaR of 0 and our platform’s analysis shows that it is safe to raise the debt ceiling ahead of future growth.
Governance forum post: https://acala.discourse.group/t/gauntlet-risk-parameter-recommendations-raising-kar-debt-ceiling/481/2