Capacity on some several protocols is being limited by staking now, rather than the global capacity limit, and with NXM decreasing in value recently this has limited potential cover purchases.
Staking 3.0 will enable more leverage to be built into the system but in the meantime I believe we can be slightly more aggressive with the capacity factors for established protocols.
Right now capacity factors are:
2x for most smart contract covers
1x for newer ones
2x for Custody Cover
The biggest risk in increasing factors is the potential attack vector where there is an embedded bug and cover is taken out longer term to exploit it. This is almost irrelevant for large established protocols so I believe the upside is worth the risk here.
More generally, I believe we should start being a bit more aggressive with risk settings to push further growth.
Here are my recommendations, which focus on increasing factors where we see the most demand and for those protocols which are stable:
|Protocol||Current Factor||Suggested Factor|
|Set Protocol V1||2||4|
|Curve All Pools (incl staking)||2||4|
|dForce Yield Market||2||2|
|Saturn DAO Token||2||2|
|Kyber - Katalyst||2||2|
|Pool Together V3||1||1|
|Set Protocol V2||1||1|