[NIP-2] Update collateralization parameters
Summary
This vote is to determine if the Notional protocol should update its collateralization parameters. The proposed parameters (16) will enable users to collateralize their debts with less collateral assets and will make it less penalizing for accounts that get liquidated. This update will make Notional's collateralization parameters more competitive and more in line with other lending protocols.
Proposed changes:
| Parameter | Current value | Proposed value |
|---|---|---|
| ETH exchange rate haircut | 75 (75%) | 78 (78%) |
| WBTC exchange rate haircut | 72 (72%) | 78 (78%) |
| ETH exchange rate buffer | 133 (133%) | 129 (129%) |
| WBTC exchange rate buffer | 138 (138%) | 129 (129%) |
| ETH exchange rate liquidation discount | 108 (8%) | 106 (6%) |
| WBTC exchange rate liquidation discount | 110 (10%) | 107 (7%) |
| nETH PV haircut percentage | 88 (88%) | 90 (90%) |
| nWBTC PV haircut percentage | 88 (88%) | 90 (90%) |
| nUSDC PV haircut percentage | 80 (80%) | 85 (85%) |
| nDAI PV haircut percentage | 80 (80%) | 85 (85%) |
| nETH liquidation haircut % | 94 (94%) | 98 (98%) |
| nWBTC liquidation haircut % | 94 (94%) | 98 (98%) |
| nUSDC liquidation haircut % | 94 (94%) | 97 (97%) |
| nDAI liquidation haircut % | 94 (94%) | 97 (97%) |
| nUSDC cash withholding buffer 10 BPS | 100 (10%) | 130 (13%) |
| nDAI cash withholding buffer 10 BPS | 100 (10%) | 130 (13%) |
Links
The previous NRC community discussion can be found here: https://commonwealth.im/notional/discussion/3633-update-collateralization-parameters Governance parameter documentation: https://docs.notional.finance/governance
Off-Chain Vote
Yes
94.31K 100%
No
0.1 0%
Timeline
Feb 03, 2022Proposal created
Feb 03, 2022Proposal vote started
Feb 09, 2022Proposal vote ended
Oct 26, 2023Proposal updated