Gauntlet supports the proposed parameters. Given utilization at 100%, incentivizing TUSD debt repayment + reduction in TUSD collateralized debt will help reduce risk.
The LT reduction from 75% to 65% may cause 5 accounts with ~$800 in borrow to become liquidatable. However, utilization has been 100%, which may limit liquidations. The LT reduction will also move a large $530k WETH borrower from HF 1.25 → 1.08.
Borrow rate will more than double from 210% APR to 470%, implying TUSD debt per user will grow 1.3% per day. Analysis of top borrowers suggests the accounts may become liquidatable soon without debt repayment.
| account | TUSD_debt | days_to_liquidate |
|---|---|---|
| 0xbab2051a457ad7338d8cfe142089e4062de48bd0 | ~850k | 115 |
| 0x26563eedb269448352ba0663f2ee554fbd389296 | ~250k | 4 |
| 0xbfb3c2cf90b17cabf40e73384e1fea5d64d83644 | ~200k | 18 |
| 0xa33974eceac58a9f469f07e8e7aa08a467707aed | ~150k | 30 |