Summary
The objective of this proposal is to increase the Maximum LTV and Liquidation LTV for TIA. When TIA was initially listed, the LTV parameters were fairly conservative. This proposal seeks to adjust the LTV parameters to reflect the liquidity and volatility conditions of the asset.
LTV Update
We propose to increase the LTV parameters as follows:
- Max. LTV from 39% to 53.5%.
- Liquidation LTV from 40% to 55%.
Motivation
Based on our methodology, the current liquidity conditions of TIA support these increased LTVs. Previously, the LTV parameters were more conservative as the liquidity and volatility conditions were unknown at the time. This could unnecessarily restrict usage of TIA within Mars. Now that more data is available on the liquidity and volatility of TIA, this proposal aims to fix this by increasing the LTVs and adjust them accordingly.
Risks
As the LTVs increase, so do the risks for the protocol. While this is true, we believe that the above proposed LTVs are still conservative given the high liquidity levels of the asset, both onchain and offchain.
Implementation
This is a signaling proposal, not an executable proposal.
The Mars smart contracts on the Osmosis 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 Delphi Labs Ltd., a British Virgin Islands limited company. Delphi Labs engages in incubation, investment, research and development relevant to multiple ecosystems and protocols, including the Mars Protocol. Delphi Labs and certain of its service providers and equity holders own MARS tokens and have financial interests related to this proposal. Additionally, Delphi Labs is one of several entities associated with one another under the “Delphi Digital” brand. Delphi Digital’s associated entities and/or equityholders or service providers of such entities may hold MARS and may have financial interests related to this proposal. All such entities, service providers, equity holders and other related persons may also have financial interests in complementary or competing projects or ecosystems, entities or tokens, including Osmosis/OSMO and Celestia/TIA. Delphi Ventures, a related company, is an investor in rights to receive TIA. 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. Delphi Labs may lack access to all relevant facts or may have failed to give appropriate weighting to available facts. Delphi Labs is not making any representation, warranty or guarantee regarding the accuracy or completeness of the statements herein, and Delphi Labs 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.