Abstract
Post 2.1 updates, parameters can be further optimised for a better efficiency protocol.
With part of the interests programmatically going to stakers, some of the fees set in replacement of collateral withdrawal fee can be reviewed.It is an ideal time to encourage more activity in the protocol by optimising the parameters through lowering some of the non-critical frictions within the protocol.
The general use cases of the parameters as followed.
Minting Fee charges a fee upon minting of iAssets
Liquidation Ratio (LR) ensures solvency of the protocol
Stability Pool (SP) withdrawal fee prevents gaming of rewards
Maintenance Ratio (MR) prevents drain attacks on stability pools as well as emergency control over minting.
Proposed New Parameters for iBTC
Minting fee 0.5% (old) → 0.1% (new)
Stability Pool Withdrawal Fees 0.5% (old) ->0.05% (new)
Maintenance Ratio 130% (old) ->115% (new)