MIP-5 Adjusting Collateral Ratios

Author[s]: Mendi Core Team

Title: Adjust Collateral Ratios

Type: Mendi Improvement Proposal

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Proposal

With the shifting market conditions the Mendi core team proposes the following adjustments to the collateral and reserve factors:

Market	Old C-factor	New C-factor	Old R-factor	New R-factor
USDC	80%	85%	10%	10%
USDT	80%	85%	10%	10%
wETH	70%	80%	20%	15%

Motivation

With these adjusted collateral factors the lending protocol can capture a larger market share within the market.

Technical considerations

The Core Team will adjust the Collateral Factors with a 24 hour timelock

Expected Timeline

• RFC and Temperature Check from 04/27 to 04/30
• Governance Vote: From 05/03 to 05/06
• Deployment Target: After governance vote, there is a 24 hour timelock to adjust ratios.

Conflict of Interest

There are no conflict of interest for the proposal.

Next Steps

Core team will adjust the collateral ratios.

References and Links