If you read our recent MakerDAO FLIP Auctions report, you might have noticed that one UNI LP auction cleared with only 1 participant bidding and only a fraction of penalty fee collected, which raises concerns around our keeper ecosystem for UNI LP auctions.
Before debt ceilings of UNI LP vault types get increased, we need to make sure we have more keepers participating in these auctions. To incentivize more keepers setting up their infrastructure to bid on UNI LP auctions, we might want to increase both ‘beg’ (auction bid increment in %) and ‘chop’ (penalty fee) values. Higher ‘beg’ should make keepers more comfortable bidding since the first bid carries some advantage. Higher ‘chop’ on the other hand should make vaults more cautious not to get liquidated.
Current ‘beg’ is 3% and ‘chop’ 13%. We are thinking of increasing both ‘beg’ and ‘chop’ by at least 2% (5% for ‘beg’ and 15% for ‘chop’).
These parameter changes would apply for all UNI LP Vault types (both onboarded and pending).
- 3% - no change
- 13% - no change
This poll closes next Thursday 25th February. Winning votes will go into on-chain poll on Monday 1st March.