WIP-45 Changing oneWING Collateral Factor to 40% (FOR)

oneWING is a stablecoin issued jointly by Wing and Ichi, and it is an important part of the Wing ecosystem.

oneWING has already supported supplying and borrowing since the launch of Wing Flash Pool (Ethereum). Since it is a stablecoin in the Wing ecosystem, it was suggested to set Collateral Factor to 85%, which means that $1 of oneWING allows users to borrow up to $0.85 in another asset.

But actually the liquidity of oneWING in DEX is poor. According to the assessment of the Collateral Factor Standardization Model, the Collateral Factor of oneWING should be 40%, and we should gradually reduce the Collateral Factor of oneWING through voting.

Feel free to have your say!

Why is DEX liquidity taken as a basis? On the ICHI platform you can mint any amount of oneWING and redeem it with a commission of 0.45%.This would be 10 points instead of 1 in the liquidity risk control score table.

The liquidity on Ichi platform is not stable. I don’t think this part can be counted as normal market liquidity.

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Totally agree with you, it is dangerous.

Agree , if there is no liquidity than thats a big risk .

I believe that the assessment of assets by the risk control department, we should reduce the collateral factor of oneWING. But the collateral factor of some assets are low, I think it should be increased appropriately, such as ETH.

If the liquidity on Ichi platform isn’t stable so OneWing CF should be change to 75% by 5%/step. If you are saying risk about DEX have no collateral fund to redeem so it should be delist. 75% or delist is what it’s should be but i think 75% is a way because DEX Collateral fund always more than 90% base on Onewing minting mechanism

oneWING’s collateral is very good, more than 95% are in USDC, but oneWING has little liquidity in the entire market, and the price is easily controlled by humans.

The previous Venus incident was impressive. I think one of the reasons it was attacked was that the staking factor of XVS was adjusted too high.

So I’m agree to adjust oneWING’s CF to 40%.

In addition, according to the assessment of the standardized model of pledge factors, the Collateral Factors of the following assets can be improved:

pNEO 50% → 55%
ETH 80% → 85%
ETHK 80% → 85%
pETH 80% → 85%
ONG 45% → 50%

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Reasonable! ETH is the most valuable collateral!

You need to consider the risk of the oracle, the oneWING market’s liquidity is low, then the price of the oracle is also easy to be attacked, 75% CF is too high.

I’m agree with you, go ahead.

If the oneWING Collateral Factor is lowered,someone may be liquidated. Can someone pull a list of users who may be affected?

address Borrow Balance Current Borrow Limit Borrow Limit after adjusting Collateral Factor
0x5ddc…4c65 1563880.169 98% 104%
0x872b…a304 1233152.003 94% 99%
0x39b9…695d 1942099.26 90% 94%
0x4fe5…b6f2 239830.5214 78% 81%

I asked the data department to make a small list of the current borrowers list with oneWING as collateral, this is filtered for minimum 50$ worth of borrowing, at least 50$ worth of collateral and the difference ≥3% between Borrow Limit before and after the Collateral Factor adjustment.

But 40% too low for a stablecoin. 60% may better i think. We shouldn’t hurt comunity who mint OneWing for Wing Platform too much

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What if we lock price oracle at $1? This is stablecoin

Though oneWING is a stablecoin, if the price of oneWING Token deviates from the market value, which is dangerous and may cause losses to other asset suppliers.

The risk model is to ensure the safety of user assets.
Users can choose another stablecoin assets to participate in Wing.

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The vote is live, click here.

The process is lowering collateral factor 5% each time with a new vote. So we can stop at some point if the community is reluctant to do so.