DIP023 – Risk Parameter Update for Stablecoins

Summary:

A proposal to adjust the LTV (Loan-To-Value) Ratio for USDC, USDT, BUSD, DAI, USX across Ethereum, Arbitrum, Optimism, BSC, as well as future deployment on other blockchains or layers.

Abstract

This proposal represents a batch update of risk parameters that aligns with the dForce Risk Management Methodology.

Motivation:

dForce performs recurring checks on supported assets to manage risk for our protocol and improve capital efficiency to the greatest extent.

Proposal:

We recommend the following set of parameter changes on a number of stablecoins:

Assets Current LTV Recommended LTV
USDC 80% 85%
USDT 80% 85%
BUSD 80% 85%
DAI 80% 85%
USX 80% 85%

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