WIP-23 What about customizing liquidation bonus rate for each asset? (For)

Discussion
#1

Currently, liquidation bonus rates of assets on Wing are all the same. However risks that liquidators undertake vary when liquidating different assets due to different volatilities of price. Thus, I propose to customize liquidation bonus rate for each asset.

To start with, I suggest changing liquidation bonus rates of all four stablecoins from 8% to 5%, including pUSDC, pDAI, pUSDT and pSUSD. Considering the fact that what liquidators earn is what borrowers loss in liquidation event and the volatilities of stablecoins are pretty low, 5% seems to be fair.

I think liquidation bonus rates of other assets also need adjustment but I don’t have specific numbers at the moment. If you have any idea about this, please leave a comment below.

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#2

8% is surely too high for stablecoins.

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#3

below 3% for stable coin is enough

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#4

I agree with the idea and 5% will make Wing more competitive.

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#5

The 8% discount rate was unfair to mortgagers.

On the third day of the auction, all the auctions were finished when the assets were discounted by 3%. At the same time, considering the incentives for users to actively liquidate, it is recommended to reduce to 3%-5%.

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#6

I think 5% is more appropriate, the 8% discount rate increased the enthusiasm of the liquidators, but it discourages the enthusiasm of borrowers，it is not conducive to the long-term development of the project.

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#7

Setting different liquidation bonus for different assets is a common way. As high as 8% for all assets is unnessary. 7% would be fine for Bitcoin and ETH.

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#8

Couldn’t agree more. Changing liquidation bonus rates of all four stablecoins from 8% to 5%, seems fair.

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#9

Good point! The facts about auctions has well proven that a 3% discount is enough for all assets when prices are not fluctuating sharply. Thus a 5% discount as liquidation bonus for stable coins is totally fine.

#10

I agree. 5% is more commonly used.

#11