[MIP-3] Risk Parameter Updates (2022-10-24)

Gauntlet makes the following recommendations to optimize risk and capital efficiency for Moonwell:

Artemis Recommendations:

  • We recommend increasing the xcDOT collateral factor from 60.0% to 62.0%.

xcDOT is relatively safe from a market risk perspective, so it can have its collateral factor gradually increased to improve capital efficiency. FRAX and WGLMR’s collateral factors are currently at an optimal balance of risk and capital efficiency. The VaR is $0 and our recommendations will leave it unchanged. The LaR is $1.0M and our recommendations will leave it unchanged.

Here are some trends we wanted to share with the community about what we are monitoring concerning the different assets.

Top 10 borrowers’ entire borrows

Utilization Rate Over Time

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Next Steps

  • Gauntlet to put up on chain proposal