DAI minted from WBTC been increasingly popular recently - the amount of DAI has tripled in the last month.
This development was the reason for yesterdays Mid-month Parameter Proposal of the MOMC and this Signal Request is about to follow up on an idea @Primoz brought up: providing a new WBTC-vault-type with a higher Liquidation Ratio.
To summarize: if we encounter a large market downturn on WBTC vaults running with a higher Liquidation Ratio are less likely running into liquidations resulting in a loss for the protocol (and with that also the vault owner). More details on the state of WBTC can be found here.
With the introduction of WBTC-B the situation might get even worse, as the capped
line for WBTC-A might force users in the even riskier vault-type.
- we could offer a WBTC-based vault with a lower Stability Fee - attracting more risk averse users
- if it gets adopted, we might be able to support more DAI from WBTC getting minted without increasing the fees (as the need to cool-down is lower)
- we will likely see some WBTC-A vaults moving over to the new one, resulting in fewer revenue on them
- this is not just a configuration, but requires work in the Core Units
The Poll will run until 2021-11-19T15:00:00Z, its outcome will result in an on-chain-poll assuming the outcome of the poll deems it necessary.