(Risk Parameter Adjustment for SXP). Proposal type: Normal. Summary. This VIP will:.

14 Feb 2023, 21:30

(Risk Parameter Adjustment for SXP) Proposal type: Normal Summary This VIP will: - Increase reserve factor to 100% for SXP (Suppliers will stop receiving interest) - Reduce Collateral Factor to 35% for SXP (User’s need to adjust their positions accordingly) Specifications Given the concerns around SXP migrating to a new chain (Solar Network) and thus a possible decline in BEP20 SXP liquidity on BNB chain, Gauntlet recommends the following actions be taken immediately to prevent risk to our users: -Immediately pause supply and borrow for the SXP market on Venus. (Recommendation executed already) -Immediately increase the reserve factor of SXP to 100% to disincentivize supply. -Reduce SXP collateral factor to 35% immediately Gauntlet will monitor market and users conditions to suggest additional reductions in CF to progressively reach a CF of 0 (zero) for SXP in the upcoming weeks. The SXP Market will then be deprecated on Venus. Voting Options For - I agree that Venus Protocol should immediately proceed with Gauntlet’s recommendations. Against - I do not think that Venus Protocol should proceed with Gauntlet’s recommendations. Abstain - I am indifferent to whether Venus Protocol proceeds with Gauntlet’s recommendations. Vote 👉🏻