Because of Indigo’s and Cardano’s efficiency, iUSD was able to launch with a MCR of 110%. This helped bootstrap liquidity by minimizing the borrowing cost. Now that iUSD liquidity has been bootstrapped and the Stability Pool saturation is roughly 96%, we should increase the iUSD MCR to 120%. This in effect increases the borrowing cost which will help reduce the price spread of iUSD in the DEXs.
yes, sounds like a good idea!
Does this mean that any cdps under 120% currently will be liquidated?
Yes, if approved on-chain. This currently represents 3,107 ADA worth of iUSD CDPs.
This temp check is no longer applicable. A new temp check can be created in the future if market conditions change.