Flip auction TTL: 10 minutes => 6 hours
Flip auction maximum duration: 3 days => 6 hours
Setting the TAU equal to TTL makes a lot of sense and resolves most of the problems that come with just increasing the TTL (which was the plan a few hours ago), so good call!
However, I can still see some issues that should be addressed:
Make it clear to CDP owners that the liquidation penalty can be as high as 33%. And that it’s most likely considerably higher than 13% during a crash like yesterday.
Increase the Surplus Buffer: If the value of the collateral falls more than 33% during the 6 hours, the debt will increase, even if keepers pay close to market rates.
Also, it is likely that bids will only happen in the last few minutes of the auction: Maybe a -25% bid 10min before auction end with some keepers trying to get a bid in at -5% in the last seconds of the auction. If the gas price spikes, the -25% could end up winning, further increasing the debt.