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.