Title eIP41: increase-borrow-factors-for-ldo-rai-mim-frax-comp-aave-snx-bal-busd-crv-1inch-yfi-snx

Author: Seraphim Submission date: 02 Jan, 2023

Simple summary Increase the borrow factors to 0.70 for the following assets: LDO RAI MIM FRAX COMP AAVE SNX BAL BUSD CRV 1INCH YFI SNX. Also change the IRM model to Major (same as UNI, LINK).

Motivation While highest tier assets on Euler have risk factors reflecting their risk profile, longer-tailed assets have extremely restrictive risk factors. This makes borrowing them unviable. This proposal is intended to increase capital efficiency for borrowers and shorts.

Now that Euler implemented Chainlink oracles, the prospect of oracle manipulation has decreased significantly. This is why I think this proposal won't significantly alter Euler's risk profile.