Temperature Check for DAO Approval: Proposal to Develop Indigo Protocol V2

Temp Check Discussion
21

My initial reaction to the RMR topic is that it will cause most everyone to raise their MCR above the set RMR threshold in order to avoid being partially liquidated. Once this happens:

  1. liquidations as we currently know them will never occur, because everyone will be way above 120%,
  2. leaving INDY stakers with no ada reward incentive,
  3. SP providers with no ada reward incentive,
  4. and a subset of users who like to leverage their debt for more ada/cnts/ispos/ etc won’t have as much room to play.

Please tell me if my thinking is off here, or if I’m flat wrong.

3 Likes