Is a variable stability fee possible - can it be dynamicaly adjusted to Collateralization ratio?

Although I have some MKR holding, I startet as a pure user, opening a vault last year and enjoyed the low SF for my Eth vault. Seeing the fee rising more and more I decided to pay back when 5.5 was announced, cause I am not in urgent need for liquidity and my investments are mostly low risk/low return (at least compared to some other crypto investments).
The new Eth-C vault seems clearly a benefit to me, but while thinking about opening one when it’s available the idea of a dynamic adjustment comes to my mind, cause I am a bit lazy and don’t like to move my funds too often (also don’t like to spend too much on gas).

Maybe it’s not possible with the contracts cause it’s a too much different way of adjustment, but if it is I would be glad to see a vault type in the future where I pay a SF which increases if my collateral ratio goes down and will be lower if my collateral ratio rises without having to move my funds.

If this has already been discussed before I apologize, I have read some, but not all posts here.

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The simpler way to do this would be to drip back some DAI or DAI-C (for compensation) for people who are maintaining high CRs.

Here is my problem here. We have opened up ETH-C (which I think is right thing to do) but then we put people’s collateral on the block. I’d rather have a lower LR vault that pays people a return in DAI-C to basically hold higher CRs. The point here is while I want people to be encouraged to hold a higher CR, I also want the Liquidation points to be as low as reasonably possible (and dynamic under certain circumstances) so the system does everything possible to allow people to borrow but protects their assets from liquidation as much as possible. Having vaults with low LRs encouraging higher CRs with a variable DAI-C return is probably the best way to have the best of both worlds.

Have a vault with low LR, and very high SF that for users above a 250-300% CR get back like 2/3 of the SF is a nice way to create decent LR spreads and avoid liquidations and generate high SF returns for risky loans. I would also advocate some idea of a LR/CR buffer of at least 10% so people literally can’t open vaults that could come immediately under the liquidation gun. I saw a more of that than expected when I was analyzing liquidations in MCD since inception.

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Agree with you, some kind of compensation will have the same effect, although I am not sure if 2/3 at 250 to 300 CR is a good target but the details and risk assesment can be done if we know if it’s technical feasable (and worth the effort) to change the contracts this way. I simply don’t know how much work this would be and how it fits to the different maker dao modules.