Summary:
This proposal seeks to update the collateral factors (C.F.), liquidation thresholds (L.T.) & liquidation max limit (L.K.L) for Wrapped Bitcoin (WBTC) vaults on the Vault protocol. The proposed changes are designed to align with current market conditions and optimize asset utilization.
Proposed Changes:
WBTC/USDC Vault
- Current Settings:
- Collateral Factor (C.F): 80%
- Liquidation Threshold (L.T): 85%
- Liquidation Max Limit (L.M.L): 90%
- Proposed Settings:
- Collateral Factor (C.F): 85%
- Liquidation Threshold (L.T): 88%
- Liquidation Max Limit (L.M.L): 92.5%
WBTC/USDT Vault
- Current Settings:
- Collateral Factor (C.F): 80%
- Liquidation Threshold (L.T): 85%
- Liquidation Max Limit (L.M.L): 90%
- Proposed Settings:
- Collateral Factor (C.F): 85%
- Liquidation Threshold (L.T): 88%
- Liquidation Max Limit (L.M.L): 92.5%
WBTC/ETH Vault
- Current Settings:
- Collateral Factor (C.F): 90%
- Liquidation Threshold (L.T): 91%
- Liquidation Max Limit (L.M.L): 93%
- Proposed Settings:
- Collateral Factor (C.F): 90%
- Liquidation Threshold (L.T): 93%
- Liquidation Max Limit (L.M.L): 95%
Description:
The proposed adjustments aim to enhance the capital efficiency of the protocol and enables the protocol to reflect broader market rates. By increasing the collateral factors, liquidation thresholds & liquidation max limit so users can utilize their assets more effectively.
Conclusion:
This proposal updates the Liquidation Threshold, Collateral Factor & Liquidation Max Limit for the Wrapped Bitcoin (WBTC) vaults.