[Question] Inquiry Regarding the Liquidation Threshold for PT-USDe E-mode

Governance
1

Hello,

I have a question regarding the risk parameters for the “PT-USDe USDe September 2025” E-mode.

According to the original governance proposal, the liquidation threshold was set at 93.2%. However, I’ve observed that the current liquidation threshold on the platform is 94.0%. I was unable to find any follow-up proposals or announcements in the forum regarding this adjustment.

Could you please clarify the following?

  1. Was there a governance action or update that led to this change? If so, could you please point me to the relevant discussion?

  2. What is the standard procedure for modifying risk parameters like the liquidation threshold? Specifically, are there safeguards to prevent adjustments from being made without a public vote, which could put user positions at risk of unexpected liquidation?

Thank you for your time and clarification.

2

intresting, following this one…

3

Hello @precook , the liquidation threshold is governed by a risk oracle that monotonically increases in value as the asset converges to maturity, in accordance with its decreased risk profile. These changes can be made in up to 50 bps increments, maximally every three days via timelock. The evolution of this algorithm for this specific asset can additionally be observed via that same governance proposal, in the Risk Oracle Parameter Evolution section.

The liquidation thresholds are not expected to decrease over time. For more information, please consult this post.