Proposal #95
Referendum #92

Improving Vault and Bridge Security

Democracy
1yr ago
3 Comments
Executed

Based on the (discussion post)[https://interlay.subsquare.io/posts/37] this proposal will:

  • Changing slashing for vaults from unprocessed redeems from 10% to 2%

  • Increasing the minimum collateral for all vaults to $1,000 * secure_threshold to ensure premium redeems and liquidations remain profitable

The under-collateralized iBTC in the liquidation vault has already been burned in the meantime. There is still a ~$50 position in the liquidation vault, however, there is an ongoing redeem on this position, so that the liquidated iBTC cannot be burned at the moment.

Edited
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AyePassing thresholdNay
81%19%
Aye
5.26MvINTR
Nay
1.23MvINTR
Turnout
6.49MvINTR
Electorate
0vINTR
Passed
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Comments

I still believe that 2% is too low.

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Support increasing min. vault size, but 2% slash seems too low and not sensitive especially for small vaults.

Plan seems better to me:

  • 10% slashing
  • increase min. collateral value (the different min. values for DOT and USDT is still a question)
  • increase liquidation thereshold to ensure liquidators will have at least 10%+ vig after slashing penalty and compete hard to liquidate for this vig

Edited

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The explanation I got is that the issue with 10% slashing is that it can push vaults below 1:1 peg and break the bridge. Therefore I support the ref.

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