As ICHI and Wing Finance are partners, Wing initially introduced xICHI assets to Wing Flash Pool (Ethereum) to enrich ecological diversity. According to the xICHI market situation at that time, the Collateral Factor of xICHI was initially set at 35%. Later, due to the stable and excellent performance of xICHI, WIP-53 voted to increase the Collateral Factor of xICHI from 35% to 40%. This means that supplying $1 of xICHI allows users to borrow up to $0.4 of another asset.
But the recent market downturn. Community members found that the market liquidity of ICHI gradually decreased, and so did xICHI. This puts the pool at risk.
Now the total supply of xICHI in the Ethereum pool has reached $1.33 Million, accounting for 44% of the total supply of the entire pool. The Collateral Factor of xICHI is now 40%, which is equivalent to a total of 1.33M*0.4≈ 530K of other assets that xICHI Suppliers can borrow. It is risky.
I suggest to low the Collateral Factor of xICHI.
Do you agree with me?
It should be lower to 30%. Ichi have low liquidity right now
I found that ICHI has listed in Coinbase, liquidity is not so bad, will 30% be too low?
Which coinbase? Ichi not currently on even Poloniex
We need to take it step by step, first drop 5% to see the situation.
Totally agree! xICHI is dangerous, in order to protect the pool, we need to lower the staking factor of xICHI.
I asked the data department to check current borrowers list, 1 address’s borrow limit will be more than 100% after xICHI‘s Collateral Factor adjusts to 35%.
Addresses who use xICHI as collateral should repay or increase collateral in time to avoid liquidation.
I suggest that based on the huge risk of xICHI, the staking factor should be gradually reduced to 0, but it needs to be reduced by 5% every 2 weeks to give xICHI suppliers time to adjust.
You’re right, we can’t put the Ethereum Flash Pool at risk.
You’re right, I got a mistake. Now I think its Collateral Factor should be adjusted to 0.
I think that although the market liquidity of xICHI is very low, it should be calculated according to the risk control model, and the Collateral Factor of xICHI should not reach 0.
And we also have to take into account the partnership with ICHI.
Better to drop to 35% first and then adjust according to the market. Go ahead!