Reduce mSPY and possibly mQQQ collateral to 110%

Currently mKO is the only asset that requires <150% is mKO. This logically makes no sense to not have atleas mSPY at the same ratio. By defition mKO is more risky that mSPY having having asystemmatic (single stock) risk and systematic (market) risk built in. mSPY (really the SPX) only has systematic risk. I personally also think mQQQ should be lowered but mSPY is just outright obvious. I will be submitting a proposol. Thoughts?

https://mirrorprotocol.app/#/gov/poll/244

4 Likes

I’ve suggested multiple assets recently and had the same outcome. Unsure why they vote in favor of whitelisting, but then vote against registering the asset.

Love the suggestion, just one thing to add: let’s add an anchor-type liquidation mechanism to Mirror before we start reducing collateral ratios. Right now liquidators are still few and far between due to the flat 20% FCFS structure, and hence there’s no proper liquidation queue for Mirror yet.

Suggest looking at [MSC Prop-1] Establishing the Mirror Steering Committee to enable this

Another good candidate for a 110% min. collateral ratio would be mARKK, which contains a big basket of stocks and it is unlikely to have a large swing suddenly.

1 Like

Not so sure about mArk before mQQQ. If you asked me that would be the first in line after spy. Wow I truely thought this would pass in flying colors. Not one person has stepped up to provide counter opinion and it’s looking iffy to pass. Not here to shove my ideas down your throat but if you voted no would love to hear why. Maybe people just don’t understand finance enough? It certainly won’t help DN strat cause of spy’s low payouts. So idgi

1 Like

Judging by the much higher premium value for the mARKK vs mQQQ, reducing the collateral ratio for mARKK would make larger impact. However, no exclusivity exist, so we can certainly lower the collateral ratio for both mQQQ, mARKK.

But shouldn’t the auction_discount parameter also be decreased since there is a chance for liquidators to lose money when MCR is 110%?

1 Like

This looks like it will pass on 2/17. How long will it take for it to go into effect after this?

There is 1 day delay after the poll pass for the changes to be executed

Some one can create the pool to down the Collateral Ratio of mQQQ to 110%?

+10.39% today, all extremely volatile tech stocks in that basket

1 Like

MSC is working on a better way to figure out what should be done on this front. Ideally a calc that should be rounded to higher 5% (110/115/120/etc) based on recent vol.

However, I am not the expert on this. Luckily there are smarter minds than mine on the MSC.