LINK has actually been quite uncorrelated to the rest of the crypto market if you look at the long time frame chart of both LINK/BTC and LINK/ETH (though it also crashed on black thursday like all other cryptos). I’m a bit biased here as a LINK holder, but what I can say that there are many other LINK holders who would be equally as willing as me to mint DAI against their LINK to purchase more LINK.
I also think mTokens (mDAI, mUSDC) from DMM DAO would be another good collateral type to add as those tokens are overcollateralized by a basket of interest-generating real world assets which currently includes $8.5M in automobiles from the United States, but are expanding to more asset classes like aviation, construction, and real estate. These would be much more stable/uncorrelated to crypto as whole and is already ERC20 compliant with an in-built exchange rate, collateralization/valuation determined by chainlink oracles, and metatransaction support.
Interestingly, mDAI most of the time technically wouldn’t even need to be liquidated through an auction as there is a reserve of DAI held in the contract (in addition to the real world asset backing) so mDAI can be exchanged for the corresponding amount of DAI (same for mUSDC but then that USDC would need to be auctioned for DAI). This method would be subject to the liquidity of the reserve ratio set currently at 50% but liquidity is actually sitting at above 100% right now to attract more liquidity. If this isn’t the right path or there’s not enough in-built liquidity, then auctions can be performed as usual. Just as a disclaimer for transparency, I do work at DMM, but I do think there is real potential here and wanted to bring it up to the community.