DIP035 - Risk Parameter Update

Summary

It is proposed to adjust risk parameters for assets supported on dForce Lending across different networks.

Motivation

This set of parameter updates aligns with the dForce Risk Framework developed based on existing market’s best practices including the DeFi Score developed by Codefi team.

We continuously perform regular assessments and adjust risk parameters to maintain protocol risk at safe levels while optimizing capital efficiency.

Specification

Vote through Snapshot

How about DF token? Why do not you increase the LTV of it?

We believe the proposed limits are sufficient and it’s a good tradeoff between utility and risk; the limits are set based on liquidity of DF token.

Adjustment to DIP035: LTV for sUSD on Optimism should be 0%

IIRC, the LTV of the DF token has not been updated since the protocol started. And I think the liquidity mining of DF lasted at least a year, so the liquidity of DF must be better now than before. I’m curious to know exactly what your strategy is.