Discussion and signalling about the WBTC debt ceiling has highlighted that whereas ETH risks include market price but not centralization, and USDC risks include centralization but not market price, WBTC includes both.
It may therefore be prudent to begin consciously considering centralization risk on its own.
This could be done by breaking up the Risk Premium into two parts:
Risk Premium = Centralization Risk Premium + All Other Risks Premium
Then, a vault type’s Stability Fee would be:
Stability Fee = Base Rate + Centralization Risk Premium + All Other Risks Premium
Note that for simplicity I suggest a single Centralization Risk parameter common to all centralized collateral, but it could also be per centralized custodian if the community perceives them to have significantly different centralization risk.
The purpose of this topic is to gauge the level of support for updating the Fee Structure in this matter.