Date: 12th December 2023
Proponent: a3dvJhhEcsFE2M3znPdPVh4XDc742xahecCjY7Hpes1AZhL2w
Requested KINT: 25,620
Summary:
The proposal addresses an unjust liquidation of the proponent's LKSM vault (a3dvJhhEcsFE2M3znPdPVh4XDc742xahecCjY7Hpes1AZhL2w) on the Kintsugi network. Despite responsible management and a collateralization level of 195%, the vault faced liquidation due to a sharp price drop in LKSM on 8th December 2023. The proponent argues that this was caused by reliance on low liquidity markets on Karura DEX and the absence of a more liquid pool in the Kintsugi oracle feed, which they are present. The liquidation resulted in a loss of 6,598 LKSM valued at $28,899, while 0.340412 BTC valued at $14,955 remained in the vault, leading to a net loss of $13,944. The results in a request is 25,620 KINT as compensation, equivalent to the loss, and highlights the need for improved oracle data integration to prevent similar incidents on the LKSM oracle-feed.
The full proposal can be read here
Update on the proposal: 14-12-2023
Seeing the price of Kintsugi surging, I want to clarify that kintsugi left after to recover the 13,944USD will be sent back to treasury.
The recovery has been done, we have sent back the coins to the treasury we have not used after getting back our vault collateral in KSM price terms.
https://kintsugi.subscan.io/extrinsic/4546820-2