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.