Fully support. Let’s create a proposal and vote on it.
Weren’t you wanting to increase MCR 1% every 8-12 hours just a couple of week ago? Didn’t you make a proposal for that? What made you change your mind to the opposite?
That’s to take advantage of the crazy cover demand last month.
Needless to say, we failed to take advantage and capacity maxed out for weeks
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I am supportive of this proposal.
“Needless to say, we failed to take advantage and capacity maxed out for weeks”
4/15/21
How does the f(cover) looks like, is it still 4.8? Even if we are to turn off the manual 1% increment, we need to first finalize the transition plan, before that, i dont suggest to turn it off. The current demand is cyclical and hugely dependent on the defi macro swings. I am with the opinion that we should just let the current capital formula functions as it is until we have more robust product offerings and more stable demands. There are plenty of features being discussed such as proof of loss, stacked risk cover and even the oracle risk covers. We should focus on getting the products out first before tweaking the capital formula again. I’m also not a fan of frequent tweaking of the formula.
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f(cover) will remain at 4.8 unless it is changed via a governance vote.
Transition plan to full on-chain MCR calculations is basically just defining a smoothing function, which we’re working on. This can include the ability to have the floor increment on or off as well.
Main point is the transition plan can be independent of this particular decision.
This is now in governance for voting. #103
You are not alone but likely in the minority. Go Vote!
I voted no because I believe that pausing the 1% daily step increase on MCR will reduce our ability to continue to build out our ability to cover the Defi market during the next Defi bull run. The events over the past month where the Mutual could not meet cover demand were bad for the brand. We can’t let this happen again. Defi is growing exponentially and we need to prepare to support 10X cover demand.
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I think I will vote ‘no’ for the same reasons. That was a short sharp intense correction for all of DeFi, it looks like things are on the up, I’m scared to throw the baby out with the bathwater.
We can always implement this at a later date?
Long term, perhaps it’s better to have both methods operating at the same time to ensure we are able to provide cover when it is needed
This has now been implemented. MCR Floor is now fixed at 162,424.73 ETH