QIP199: Implementing Measures to Enhance Protocol Stability on the Fantom deployment

Proposal:

Implementing Measures to Enhance Protocol Stability on the Fantom deployment

Objective:

Addressing the abnormal movement of lockup assets and issues with the Multichain bridge on Fantom, this proposal aims to enhance protocol stability. The protocol will increase the Collateral to Debt Ratio (CDR) over time and adjust oracle price sources for accurate market representation.

Implementation:

Enable the guardian multisig to manage the current vaults based on the following:

• Adjust CDR: Gradually raise collateral requirements for lending and borrowing. Conduct risk assessment considering market conditions and liquidity. Transparently communicate changes to users.

• Adjust Oracle Price Sources: Update sources to reflect current market liquidity (such including TWAP and/or PoR oracles) Integrate reliable data feeds and ensure accuracy. Promptly respond to market changes.

• Lowering repayment fee to 0.1%

• Increasing debt repayment upon liquidation

Rationale:

To mitigate risks and protect users, we propose increasing the CDR and adjusting oracle prices. This will improve protocol stability amid the Multichain bridge issues.

Quorum:

The options with most votes will be implemented. Expedite execution of this proposal may be approved before the end date if Quorum reaches 20M QiPowah.

Options:

Implement Measures Abstain Further discussions needed

Note:

This proposal only applies to the Fantom blockchain deployment.