Enable A New Vault Type With KINT As Collateral

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At time of writing, KINT pool depths are currently:

  • Karura aUSD/KINT: $75,067
  • Solarbeam WMOVR/xcKINT: $4,111
  • Zenlink WMOVR/xcKINT: $262,000

The KINT collateral ceiling of 1mio equivalent seems a bit too high considering how easy it would be to sway the price with such small pool depths. Are there any plans to either seed or incentivize more liquidity?

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In light of the recent LUNA collapse and the valid point raised by @timbotronic, we suggest lowering the ceiling and increasing the secure collateral threshold from the initial discussion:

  • Initial collateral ceiling: 100,000 USD equivalent
  • Secure collateral threshold: 900%
  • Premium redeem threshold: 650%
  • Liquidation threshold: 500%

KINT has low liquidity on exchanges at the moment. Thus, influencing the KINT price would not be very capital intensive and pose a risk to Vault operators using KINT.

Lower thresholds and a higher ceiling can be configured based on the market situation after the first launch.

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