Date: 12th December 2023 Proponent: a3dvJhhEcsFE2M3znPdPVh4XDc742xahecCjY7Hpes1AZhL2w Requested KINT: 25,620
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.