I would like to propose that we use LKSM as collateral. LKSM can be redeemed for KSM at any time, so it is as valuable. However, for vault operators it also earns some APY, since they get LKSM in return for staking KSM.

Thresholds for LKSM
liquidation threshold: 150%
premium threshold: 200%
secure threshold: 260%
minimum collateral: 20 LKSM
ceiling: 38.000 LKSM

I request that this be upgraded already to referendum to speed up the process.