WIP-21 Should we adjust the collateral factor of prenBTC and pWBTC from 50% to 65%? (For)

The total market capitalization of prenBTC has exceeded $311 million from CoinMarketCap.

The total market capitalization of pWBTC has exceeded $2.1 billion from CoinMarketCap.

Now the collateral factor of prenBTC and pWBTC is 50%, the same as wing’s collateral factor, from the past performance, the performance of prenbtc and pwbtc is stable, and both assets are anchored with the value of BTC. Since the collateral factor of ETH is 80%, I think that the collateral factor of prenBTC and pWBTC can be increased to at least 65%, so that users can mortgage the same assets and loan more assets. I propose to change the rate of prenBTC and pWBTC from 50% to 65% to increase utilization of funds.

I agree but I would recommend 80 percent collateral factor.

I’d support this. There’s no reason the more stable should be treated as more risky.

1 Like

Agreed , Wbtc is the 1 asset for defi and will pass chain link ,so 80 percent is a no brainer imho

80% will increase the liquidation risk. I know it’s a personal decision, but we still want to avoid too many liquidations.

80 percent will attract more investers to take more loans and on the risk side , they should do there research before using the protocol.

I agree to increase the collateral factor. Any number no more than 80% would be fine.

I think 75% is fine with considering 8% liquidation Discount Rate.

75% is better than 65% in my point.

prenBTC and pWBTC is relatively stable. So the change is reasonable.

I think 75% or less is good. BTC volatility is pretty high recently.

80 percent collateral factor will drop your margin by 30 percent, and on another note , their are better options out there to park your btc instead of wing like ,synthetix , and etc.

Comparing market caps, volatility of prices and collateral factors of different assets in Flash Pool, it’s obvious that the current collateral factors of prenBTC and pWBTC need adjustment.

Since BTC is not a stablecoin, the collateral factor shouldn’t be as high as USDT. And one more thing, once we raise the collateral factor, it’s very hard to drop it again.

The vote is live. Check here