Parameters Optimisation for iUSD

Temp Check Discussion
1

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 iUSD

Minting fee 0.5%(old) → 0.1% (new)
Liquidation Ratio 120%(old) → 110% (new)
Stability Pool Withdrawal Fees 0.5%(old) ->0.05% (new)
Maintenance Ratio 150% (old) ->130% (new)

11 Likes
2

Open the gates and let the iassets flow.

5 Likes
3

I would support this. V2.1 parameters should change as necessary to reflect and respond to current market conditions. These are all proposing that we remove barriers to entry, which is good for growth and adoption.

2 Likes
4

Ok agreed time to optimize

2 Likes
5

This is great and reduces the barrier for entry I agree. Send it.

2 Likes
6

Let’s get these pushed through!

1 Like
7

how can it even have any kind of impact if the RMR remains the same ??
till we dont have the peg back and RMR removed or winded down to maintenance ration then it will not have any effects. but i like the idea of doing things in advance so 100% support for this proposal.

1 Like
8

Ok agree with this, it’s time to move some numbers!

9

I would recommend to lower the Maintenance Ratio to 115% to limit the a premium to +15%