This proposal accounts for the threshold adjustment mentioned in the original discussion post here: https://interlay.subsquare.io/post/12
The KSM thresholds were reduced in https://kintsugi.subsquare.io/democracy/referendum/71. However, the corresponding thresholds for LKSM collateral were not yet reduced to the values recommended by the Interlay team, and in particular the models from team member
InternalError posted here:
This proposal is to change the secure threshold levels as follows:
Current values LKSM <> KBTC
secure (min. when minting): 260%
Proposed new values LKSM <> KBTC
secure (min. when minting): 180%
This change reduces the capital requirements of Vaults by ~30%.
For more information on the meaning of individual thresholds, see Vault collateral thresholds.