Real-world assets are more complex than crypto-vaults based only on an on-chain price, some information is off-chain (at least for now) and discretionary judgment is needed. You can see more details in the covenant forum post and poll .
Still only one pool: New Silver
You can find the covenants definitions in the risk assessment .
This month we have some data issues as I didn’t take a snapshot at the end of the month, which is why the loan value (Maker, loan tape at the end of month) is so low compared to the Centrifuge one (as of today). The DROP amount/price is of today. Therefore the CR and NewSilver TIN investments are less good than reality (but still above the threshold). This shows what would happen if two loans were fully in default.
Concentration in Florida is decreasing from last month and the pipe will decrease it further. You can check the previous report for a more detailed discussion on this point. The RWA Committee is assuming that the maximum state exposure makes sense at the full use at the DC to give to get diversification as a small pool is unlikely to be diversified.
Analyzing the document also showed a discrepancy between the dashboard and the Risk Assessment. We wrote the LTV max was 80% but the executive document at the time showed 85%. Since then the executive document was updated to 90% max LTV. The dashboard has an “Exposure high LTV” line that shows what is above the 85% limit. The 15% allowance was set at the creation of the report. I told New Silver to keep the exposure below the threshold. I will have another call with them to discuss the matter. The average LTV of the portfolio remains at 72%.
This shows that we need to formalize our monthly audits something we will address next month and give the audit report to the RWA Committee (and to the public if this seems possible).
As New Silver is growing they will ask for a DC increase, this will be a good opportunity to address those points and have a community call with New Silver.