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.
Support increasing min. vault size, but 2% slash seems too low and not sensitive especially for small vaults.
Plan seems better to me:
Edited
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.
I still believe that 2% is too low.