The justifications for the downgrade are the same as in the previous Reddit post, with the difference that we want a stabelcoin that is the equivalent of 1 USD, so we have to treat it that way.
Reduce the factor every 2880 blocks by $0.005, i.e. a total of 115,200 blocks ~40 days, this time should be enough to not cause any quick liquidations.
Here are the advantages again:
More DFI or dUSD inflow in vaults to keep the loan open
Increases dToken Liquidity Mining APR
lower loan schemes possible
looped vaults are more likely to be liquidated
The post above goes into more detail about the reasons and benefits.
We would appreciate your feedback
Non-obligation
I understand that vote of confidence for DFIP carries no obligations by any developers to implement the proposals. DeFiChain is a community projects. Pull requests can be submitted by community and reserved to be evaluated for safety and general community acceptance.
DFIP Overview
Describe your proposal
In collaboration with u/Phigo90 and u/mrgauel
Update: After further consideration and feedback, we have decided to discuss in this post reducing the DUSD factor in Vaults from $1.2 to $1.00, not as originally discussed, https://www.reddit.com/r/defiblockchain/comments/11ff67h/reduction_of_the_dusd_factor_in_vaults_from_120/, to $1.05.
The justifications for the downgrade are the same as in the previous Reddit post, with the difference that we want a stabelcoin that is the equivalent of 1 USD, so we have to treat it that way.
Reduce the factor every 2880 blocks by $0.005, i.e. a total of 115,200 blocks ~40 days, this time should be enough to not cause any quick liquidations.
Here are the advantages again:
More DFI or dUSD inflow in vaults to keep the loan open
Increases dToken Liquidity Mining APR
lower loan schemes possible
looped vaults are more likely to be liquidated
The post above goes into more detail about the reasons and benefits.
We would appreciate your feedback
Non-obligation
I understand that vote of confidence for DFIP carries no obligations by any developers to implement the proposals. DeFiChain is a community projects. Pull requests can be submitted by community and reserved to be evaluated for safety and general community acceptance.