Decrease Collateral Ratio for mAssets

Hey everyone,
We are currently in an ever competitive market and we need to increase the abilities of mirror protocol. I believe a short term solution to add more liquidity to all of our pools should be to reduce minimum collateral requirements for minting. This will also have a positive impact on mirror holders as fees should go up.

mKO currently has a minimum collateral ratio of 110%. This is much lower than anything else. As a result, the amount of mKO that can be minted/traded is greater than if the minimum were 130%.

Just how different?
Max exposure at 130% collateral is ~4x
Max exposure at 110% collateral is ~8x

I’m not suggesting that every asset moves to 110%, but doing so on things like mSPY could bring in significantly more revenue from minting assets.

One of our biggest strengths is that we give our customers the ability to short assets with aUST, the more we allow them to use Anchor as a way of leveraging yield!

I’m curious what the community thinks before I make any proposals.
Thanks all

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Hey @bryguyyyy
That a pretty legit post ,
thank you for bringing the light on the cost of collateral
the goal is bring more demand without pushing oracles and rpc servers in red zone
not all collateral are equal
Shortages of high-quality collateral can occurs
i think , code easy not high cost or over-complex to maintain.
Or test in prod. Keep thing simple is better.
Thank you for tuning in.

Can you talk more about this?

The high fee of minted value and the excessively low allowable collateral ratio reduce the attractiveness of minting assets by entrusting aUST. This leads to a high premium for the asset by allowing miners to mint only at the perfect opportunity.

If assets soar, why not liquidate borrowers to maintain protocol stability?

Even at 1% and 140% respectively, I would be much more involved in asset minting.

i just submitted a proposal. please also see my thread

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