## Proposal

Following the discussion post on Interlay [(https://interlay.subsquare.io/post/14)](https://interlay.subsquare.io/post/14), and the numerous requests by Vault operators, I propose the activation of USDT as a vault collateral on Kintsugi.

The configuration proposed (taking account analysis by the Interlay team) for USDT is as follows:

* Initial collateral ceiling: 100.000,00 USD equivalent
* Secure collateral threshold: 165%
* Premium redeem threshold: 155%
* Liquidation threshold: 140%
* Minimum collateral threshold: 150 USDT


## Resources:

* USDT Asset Registered: [https://kintsugi.subsquare.io/democracy/referendum/68](https://kintsugi.subsquare.io/democracy/referendum/68)
*   Statemint XCM Channel: [https://kintsugi.subsquare.io/democracy/referendum/60](https://kintsugi.subsquare.io/democracy/referendum/60)
*  Governance guides: [https://docs.interlay.io/#/guides/governance](https://docs.interlay.io/#/guides/governance) (incl. how to make a proposal)
* Python code used for analysis of new assets proposed as vault collateral: [https://github.com/interlay/collateralization-analysis](https://github.com/interlay/collateralization-analysis)

- Interlay is proposing to add USDT as a collateral on Kintsugi.
- USDT will have an initial collateral ceiling of 100,000 USD equivalent.
- There are different thresholds for USDT such as secure collateral threshold, premium redeem threshold, liquidation threshold, and minimum collateral threshold.
- The proposal has been registered on Kintsugi and there are governance guides available for making a proposal.
- Python code has been used for analysis of new assets proposed as vault collateral.

Activation of USDT as a Vault collateral on Kintsugi

Proposal

Resources: