OLIP-6 Proposal to Recover Lenders’ Losses and Limit Borrowing Amount

The recent liquidation of a significant position of OLE/BUSD resulted in bad debt of about $446 to the BUSD->OLE pool. The loss has been shared equally by all lenders in the pool by design. With the community’s consensus, we can move $446 worth of BUSD from the BUSD->BNB insurance fund to the BUSD->OLE insurance fund to compensate for this loss. The compensation will recover all lenders’ losses from the BUSD->OLE pool. To prevent similar situations from occurring in the future, we are adding control on the front end to limit the borrowing amount to up to 5% of DEX liquidity for each position.

Please vote FOR or AGAINST the proposal to:

1. Move $446 worth of BUSD from BUSD->BNB pool to BUSD->OLE to compensate for the loss.
2. Prevent a similar reoccurrence by adding front-end control to limit borrowing amount to 5% of DEX liquidity for each position.