Proposal to Disable Borrows for Long Tail Assets
Hey all - happy to see a constructive discussion regarding the next steps. Reading through the thread, with proposals and support from @eboado, @llama, @stani, and ourselves, it seems that a consensus is forming around the following parameters changes:
| Asset | Status | Proposed Action |
|---|---|---|
| $YFI | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $CRV | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $ZRX | Collateral Enabled, Borrowing Disabled | Freeze |
| $MANA | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $1inch | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $BAT | Collateral Enabled, Borrowing Disabled | No Change |
| $sUSD | Borrowing Enabled, Collateral Disabled | No Change |
| $ENJ | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $GUSD | Borrowing Enabled, Collateral Disabled | No Change |
| $AMPL | Borrowing Enabled, Collateral Disabled | Freeze, RF to 99% |
| $RAI | Borrowing Enabled, Collateral Disabled | Freeze |
| $USDP | Borrowing Enabled, Collateral Disabled | No Change |
| $LUSD | Borrowing Disabled | No Change |
| $xSUSHI | Collateral Enabled, Borrowing Disabled | No Change |
| $DPI | Collateral Enabled, Borrowing Disabled | No Change |
| $renFIL | Borrowing Enabled, Collateral Disabled | Freeze, RF to 99% |
| $MKR | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $ENS | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $LINK | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
| $UNI | Borrowing Enabled, Collateral Enabled | Disable Borrowing |
Next steps
We’ll follow up shortly with a proposal. After these changes are approved, the community should discuss amendments to LT and LTV of different assets, allowing some of the above changes to be relaxed without compromising healthy user positions. We’ll be adding data regarding this soon so we can understand the associated implications of parameter reductions to user positions.
Thank you @Llamaxyz and @MatthewGraham for collaborating on this proposal.