As a plan to avoid further losses by the community and due to the recent events , VIP-28 will allow updates on collateral factors for SXP and XVS. As per community feedback and a thorough risk assessment based on market volume, depth level, market making level and volatility level.
In order to save time, due to the latest FUD attempts on our community, we have decided to immediately submit a 10% ratio adjustment to avoid the involved bad actors to keep preying on us.
We will keep slowly reducing the collateral ratios 5% per week until a collateral factor of 55% is reached to give everyone a fair chance to repay their outstanding loans.
Where is the âcommunity feedback and a thorough risk assessmentâ, give us the details!
Can you tell me why canât disable the borrow function of XVS and SXP temporilyďź
If you really want to âsave time, due to the latest FUD attempts on our communityâ, you should disable the borrow function of XVS and SXP immediately.
This is actually coming! All the borrow rewards will be distributed to the XVS Suppliers and the borrowing of XVS eliminated completely!
Please also submit you comment/question in the upcoming AMA on Sunday at 3.00pm UTC. If you would like to have it addressed more âdirectlyâ as well.
You misunderstand what i said, what i mean âdisable the borrow function of XVS and SXPâ is "you canât borrow other coins using XVS/SXP as collateral from nowâ, but you still can keep you current debt and can repay you debt as your wish.
What i want to know is if the code of Venus can implement this function? if you can communicate
with the developer to confirm this?
In other words to explain disable the borrow function of XVS and SXP:
When you want to borrow new debt will not calculate the collateral value of XVS/SXP.
But the liquidation trigger still will calculate the collateral value of XVS/SXP.
It will ask two separate calculation mods, one for borrow, one for liquidation.
This is for Dev team to consider.
If this can implement, the debtor can chose to keep their current debt and can chose to repay their debt as they wish, but they canât borrow new debt, then we will have enough time to wait the market become better and code separate lend cap for each coin. It is better than slowly reducing the collateral ratios, nobody will get hurt.
THKS.
Besids, it also is a emergency risk control function.
I think this is crap. Issue the compensation to the XVS holders that got liquidated first during the event. Thereâs some with so little left they canât repay what little debt they have left and keep get liquidated little by little.
We shouldnât do this right now. Adjusting the collateral alone will not prevent attacks.
You shouldnât be able to borrow XVS at all. People need more time to pay down their loans.
Just remove the borrowing function of XVS immediately and give people more time.
the issue is not with borrowing XVS itself as it has a borrow cap of 450k, but with high collateral factor, as âsome peopleâ borrows ETH/BTC with 2 million XVS, and uses the BTC/ETH to purchase more XVS and put that XVS again in as collateral and borrow more ETH/BTC, simply the XVS market is not enough liquid to handle 2 million XVS liquidation as if this account gets liquidated it pushes the price further down, and cause more and more liquidation.
To me I donât see why you can hold XVS as a collateral but yes you can stop people from borrowing XVS
What will be the incentive to hold XVS or drive the price up?
If someone thinks I am wrong please enlighten me. I would love to hear other peopleâs views