MANA at 12% what the reason for it already?

it seems very high compared to the others.
Any reason?

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The process goes like this:

  1. Someone calculates the risk (rule of thumb)
  2. We change that number depending on how bad the peg is
  3. We raise that number based on how much we might get without losing borrowers (the peg is not important at that point)
  4. We adjust that number to how much we can actually get without being undercollateralized

Originated from this risk evaluation: [MANA] Collateral Onboarding Risk Evaluation

Very good work.

But at the end, I can’t see any specific reason which justify the gap between mana and the others.

I believe the risk was higher because it was the first one to be set up. Did I miss something?

Hey @alexis

MANA has very low liquidity, the lowest among all the assets in Maker’s portfolio (we use volumes only from reputable exchanges). Therefore both DC and SF were set very conservative. Not to mention liquidity dried up recently as well, so we might need to propose additional changes to risk parameters.