# Make the options when supplying an asset

**URL:** <https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687>\
**Category:** Discussion\
**Created:** [April 21, 2021, 1:35pm UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687 "2021-04-21T13:35:46Z")\
**Posts on this page:** 6\
**Page:** 1

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**Author:** ![veresha75](https://gov.wing.finance/letter_avatar_proxy/v4/letter/v/48db29/32.png) [@veresha75](https://gov.wing.finance/u/veresha75)\
**Post date:** [April 21, 2021, 1:35pm UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687/1 "2021-04-21T13:35:47Z")

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for example  
Collateral Factor 75% - Liquidation Bonus 3%  
Collateral Factor 80% - Liquidation Bonus 5%  
Collateral Factor 85% - Liquidation Bonus 9%

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**Author:** ![veresha75](https://gov.wing.finance/letter_avatar_proxy/v4/letter/v/48db29/32.png) [@veresha75](https://gov.wing.finance/u/veresha75)\
**Post date:** [April 29, 2021, 8:11pm UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687/2 "2021-04-29T20:11:15Z")

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The WING collateral % should be adjusted higher to encourage more holders to borrow against their WING. 40% is too low. The liquidation bonus should then be higher. In some projects I dealt with 15%. Minting DAI, for example, has a liquidation penalty of 13% for any collateral: ETH, USDC, TUSD, LINK.

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**Author:** ![veresha75](https://gov.wing.finance/letter_avatar_proxy/v4/letter/v/48db29/32.png) [@veresha75](https://gov.wing.finance/u/veresha75)\
**Post date:** [May 4, 2021, 9:49am UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687/3 "2021-05-04T09:49:05Z")

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I suggest a simple experiment. Let’s create another clone of the Contract on the ONT Flash Pool for WING with a higher level of collateral and the liquidation bonus. Just another WING (66/13%) line in the Flash Pool. This choice will increase the appeal of WING ownership.

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**Author:** ![Nickoshi](https://gov.wing.finance/letter_avatar_proxy/v4/letter/n/ce73a5/32.png) [@Nickoshi](https://gov.wing.finance/u/Nickoshi)\
**Post date:** [May 6, 2021, 9:44am UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687/4 "2021-05-06T09:44:56Z")

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Your points that make sense:

1. higher collateral factor increases capital efficiency
2. WING should have a higher level of collateral ratio since it’s a VALUE TOKEN!

Things to discuss:

1. if Collateral Factor increases with the Liquidation Bonus, then the liquidation risk will be higher. i.e. if a collateral token has 85%/9%, then the liquidation must be done within 6% price change of this token. Otherwise, lenders’ positions will be damaged

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**Author:** ![CedricD](https://gov.wing.finance/letter_avatar_proxy/v4/letter/c/cc9497/32.png) [@CedricD](https://gov.wing.finance/u/CedricD)\
**Post date:** [May 8, 2021, 1:56am UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687/5 "2021-05-08T01:56:59Z")

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A easy way is to raise the collateral factor of WING to 60%, and maybe ONT/ONG as well. Did you notice the collateral factor of WING on BSC is 60%. I believe the team are trying to test it on BSC version first.

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**Author:** ![veresha75](https://gov.wing.finance/letter_avatar_proxy/v4/letter/v/48db29/32.png) [@veresha75](https://gov.wing.finance/u/veresha75)\
**Post date:** [May 12, 2021, 10:52am UTC](https://gov.wing.finance/t/make-the-options-when-supplying-an-asset/687/6 "2021-05-12T10:52:53Z")

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> [@Nickoshi](#):
>
> if a collateral token has 85%/9%, then the liquidation must be done within 6% price change of this token. Otherwise, lenders’ positions will be damaged

Here’s what I found in the Roadmap. Some kind of automatic system should totally minimize the risk.

**Flash Liquidation**

- **Wing is developing a new “Flash Liquidation” feature where users can participate in liquidation directly with their locked assets. Users will be able to avoid paying high gWei fees during busy periods and keep their assets in the Supply or Insurance Pools while taking out a flash loan to participate in a liquidation based on need.**
