This proposal seeks to: Reduce the oBTC asset ratio from 150% to 125%.
The primary motivating factor for this proposal is that continuous increase of BTC price led asset ratio close to 150%, which means that no more new oBTC can be minted. Since the oBTC tunnel has run safely and smoothly for 5 months, we consider reducing the oBTC asset ratio from 150% to 125%.
Currently, any amount of BTC minting needs 150% asset ratio to support tunnel capacity. If this proposal passed, that means more BTC could be minted with 125% asset ratio and BoringDAO’s total value locked will continue to grow.
Option 1 oBTC tunnel is about to run out of tunnel capacity temporarily and will not be able to mint oBTC. But oBTC will be backed by more ERC-20 Token. Option 2 decreasing the asset ratio will allow the capacity of the oBTC tunnel to increase, more oBTC will be minted. But oBTC will be backed by fewer ERC-20 Token.