We have requested Gaunlet to review Karura’s stablecoin KSM Liquidation Ratio and Min. Collateral Ratios. And below is the recommendation
- Decreasing the Liquidation Ratio from 2.25 to 1.8
- Decreasing the Min Collateral Ratio from 2.75 to 2.0.
The kUSD peg is stable with $4.36M kUSD minted at the time of this post.
The Financial Council will take this recommendation and propose these new ratios on-chain.
A piece of expert advice and decision like this may not necessarily need to go through a referendum, as it often has little relevance to individuals regarding protocol risk management (versus personal benefit), and also poses much overhead for individuals.
Here’s the Risk Management Dashboard by Gaunlet Gauntlet Autogov
See the Financial Council proposal on-chain here