Increasing iUSD MCR to 120%

Here you can cast your vote to increase iUSD MCR to 120%

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2023-01-06T06:00:00Z2023-01-11T06:00:00Z

2 Likes

The previous temp check speaks for itself, increasing the MCR to 120% should only be the beginning. For the sake of the protocol and the Cardano defi space-- lets make it safer to use! I love Indigo

To just put out my thoughts, this would be best executed in a way that mimics Vesta’s vaults on Ethereum; ex. MCR is 120%, and someone gets liquidated.

Only 10% of that goes to stability pool and the rest goes back to vault opener— this works the best to prevent bad debt in efficient

1 Like

the issue with that IMO is that it would disincentivize the stability pool which even with current parameters has numerous circumstances where it would be unprofitable. Unless I’m misunderstanding something glaring, I would withdraw 100% of stability pool deposits and instead provide liquidity. Sure, there are risks as an LP as well, but I can control those risks at my own discretion by pairing/unpairing strategically while accumulating ADA,BTC,ETH,orUSD from A/B trading through the LP.

INDY should want more deposits in the stability pool, not less. Again, unless I’m missing something what would inventivize someone to take on the risks of depositing to stability pool with such a significant cut to current rewards with no compensation for that loss in reward?

If I’m misunderstanding something, please let me know but this looks like a straight slash to SP deposit incentives and could risk destabilizing the protocol as SP depositors switch to Liquidity provision or even just setting “hail mary” limit orders on DEX’s for iAssets (buying below market value or selling >market value)

Cross Linking

Voting in favor

4 Likes

I think there might be some confusion here, why would this disincentivize the stability pool? Nothing changes except for the threshold where CDP’s get liquidated. The stability pool rewards stay the same, if anything this would INCENTIVIZE stability pool providers by giving them a bigger bounty. This is the same way that Liquity does such a good job at incentivizing stability pool providers

2 Likes

you could control your risks in a similar way as LP, just by adding and removing your SP position. you are incentivized by receiving ada a a better than market rate, as well as rewards in INDY, which is currently a fairly substantial APY.

I think it is important that the DAO implement some mechanism to increase its ownership of the liquidity pools. This is not to disincentivize users from staking to the stability pools, rather to help insure these pools maintain an adequate depth, which will be especially important when/if market conditions arise where as you suggest it is not necessarily profitable for users to participate in the stability pools.

I believe what Flywheel suggests would not affect the current rewards at all, SP would still receive their 8%, 2% to INDY stakers, the 10% created by this proposal would go towards a DAO owned position in the stability pool.

1 Like

To the one that opened the CDP? but how could you remove the iUSD from circulation?