LlamaRisk supports these changes, which are within reasonable boundaries and will result in faster adaptability and reduced governance overhead. We have collaborated closely as reviewers of @ChaosLabs’ work for almost a year and hold their work in high regard.
Comparison table of proposed changes
| Parameter | Current | Proposed |
|---|---|---|
| Supply & Borrow Caps | 100% relative | (no change) |
| Debt Ceiling | 20% relative | (no change) |
| LST Cap adapter params | 5% relative | (no change) |
| Stable price cap | 0.5% relative | (no change) |
| Base Variable Borrow Rate | 0.5% absolute | 1% absolute |
| Slope 1 | 0.5% absolute | 1% absolute |
| Slope 2 | 5% absolute | 20% absolute |
| Optimal Point (Kink) | 3% absolute | (no change) |
| Loan to Value (LTV) | 0.25% absolute | 0.5% absolute |
| Liquidation Threshold | 0.25% absolute | 0.5% absolute |
| Liquidation Bonus | 0.5% absolute | (no change) |
(no change to minimum delay)