0x3fcb35a1…cb28sent to0xbeccb6bb…9bf6·#17,942,741·view on Etherscan
# Adjust parameters to de-risk FiRM
The purpose of this proposal is:
(1) reduce exposure to CRV and CRV-derivate collaterals on FiRM
(2) reduce risks of cascading liquidations on FiRM
(3) incentivize some borrowers to repay their FiRM loans in order to re-allocate their DOLAs to AMM Feds
In order to achieve (1), this proposal pauses new borrows on CRV, cvxCVV and st-yCRV markets. This will prevent more loans backed by these collaterals and will only allow borrowers to repay their existing loans. This will also prevent the Fed Chair role from further expanding exposure to these markets until further notice.
In order to achieve (2), this proposal reduces the liquidation factor of the 3 markets above to 20%. This will prevent liquidators from seizing and selling a significant portion of borrowers' collateral during liquidations, reducing the likelihood of cascading liquidations.
In order to achieve (3), this proposal reduces the maximum DBR streaming rate from 20M/year to 12M/year. This reduction will turn DBR supply deflationary until FiRM's global debt is reduced down to $12M/year.