Summary
The objective of this proposal is to increase the Maximum LTV and Liquidation LTV for stATOM on the Neutron outpost of the Red Bank. When stATOM was initially listed on Neutron, the LTV parameters were fairly conservative. This proposal seeks to adjust the LTV parameters and align them with these parameters on Osmosis.
LTV Update
We propose to increase the LTV parameters as follows:
- Max. LTV from 44.50% to 69%.
- Liquidation LTV from 45% to 70%.
Motivation
When stATOM was initially listed on Neutron [MRC-43], the LTV parameters were more conservative as the liquidity conditions were unknown at the time. This could unnecessarily restrict usage of stATOM within Mars.
This proposal aims to fix this by increasing the LTVs and making them consistent with Osmosis.
Risks
According to the Mars Risk Framework, we believe that the above proposed LTVs are conservative enough given the high liquidity levels of the asset, both on-chain and offchain.
Implementation
This is a signaling proposal, not an executable proposal.
The Mars smart contracts on the Neutron chain are currently controlled by the Builder Multisig address. If this proposal passes, the builders will utilize their multisig to make the necessary parameter changes.
Copyright
Copyright and related rights waived via CC0.
Disclaimers/Disclosures
This proposal is being made by Mars Protocol Foundation, a Cayman Islands foundation company. Mars Protocol Foundation engages in research and development of the Mars Protocol. Mars Protocol Foundation and certain of its service providers and managers own MARS tokens and have financial interests related to this proposal. The aforementioned persons or their affiliates may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including stATOM, ATOM, and NTRN. These statements are intended to disclose relevant facts and to help identify potential conflicts of interest, and should not be misconstrued as a complete description of all relevant interests or conflicts of interests; nor should they be construed as a recommendation to purchase or acquire any token or security.
This proposal is also subject to and qualified by the Mars Disclaimers/Disclosures. Mars Protocol Foundation may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Mars Protocol Foundation is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Mars Protocol Foundation shall have no liability in the event of losses or damages ensuing from approval or rejection or other handling of the proposal. Each user and voter should undertake their own research and make their own independent interpretation and analysis of all relevant facts and issues to arrive at their own personal determinations of how to vote on the proposal.