WIP-16 Propose to increase the collateral rate of USDT to 80% (Yes)

The collateral rate of all stable coin but usdt are 80%. I propose to change the rate of USDT from 50% to 80% to increase utilization of funds .

There is an opposite opinion that we should lower stable coin rewards by lowering collateral factor or WING weight. It’s a question that how to balance WING holders’ incentives and a higher collateral factor pool

I think it’s better to find a fundamental solution rather than just a% fluctuation.

Since one goal of Wing project’s is to be the highest borrowing/lending ratio platform. I agree this in the long term. But I’m not sure whether currently it’s a good time to do that.

The current TVL is much lower than we used to see. I think this proposal can be a great solution and the team should bring it to WIP vote.

I remember the collateral rate of USDT is 60% now, not 50%.

Yes, the collateral factor is 60% right now and it’s highest among lending/borrowing DeFi platform. We need to balance the real risk for stable coin and Wing ecosystem. We could increase factor of USDT to 80% and lower the borrowing WING incentive weight for stable coin. But let’s do one thing at a time.

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TVL keeps dropping these days… Currently, the collateral rate for USDC and DAI is 80%. USDT should be put at the same level cos they are all stable coins to attract new users

Hopefully it can save TVL. Instead, this proposal will increase the utilization rate of USDT, then pump the interest rate of supplying USDT.
Theoretically, it makes sense.

This seems reasonable.

Nothing’s gonna happen if we don’t try. Go TVL. Go USDT!

Sounds great, GO USDT

The voting result is Yes, check voting detail here