Enable OSMO as collateral for the minting of CMST

Harbor Discussion
1

The purpose of this thread is to enable OSMO as collateral for the minting of CMST.

A user may open a position in any of the vaults based on his needs, each of which will have a distinct CR ratio, debt ceiling, stability fee, and other relevant parameters. The parameters for creating three vaults are outlined in the following proposal.

Parameters for OSMO-A vault:

  • CR ratio: 150%
  • Stability fee: 4.5%
  • Debt ceiling: 250k
  • Debt Floor value: 100$
  • Drawdown fee: 0.5%
  • Closing fee: 0.5%
  • Liquidation penalty:15%

Parameters for OSMO-B vault:

  • CR ratio: 180%
  • Stability fee: 3.5%
  • Debt ceiling: 350k
  • Debt Floor value: 100$
  • Drawdown fee: 0.5%
  • Closing fee: 0.5%
  • Liquidation penalty:15%

Parameters for OSMO-C vault:

  • CR ratio: 210%
  • Stability fee: 2.5%
  • Debt ceiling: 400k
  • Debt Floor value: 100$
  • Drawdown fee: 0.5%
  • Closing fee: 0.5%
  • Liquidation penalty: 15%

The above numbers are decided per the risk parameter blog .

3 Likes
2

Yes, this sounds good.
3 vaults & the parameters sounds well.

Being a major token in cosmos ecosystem, onboarding OSMO as a collateral to mint CMST aligns with the goal of CMST as an IBC-native fully-collateralized stablecoin

Will these vaults also be incentivized for the opportunity cost of having 150% to 210% asset collateralized for minting CMST?

3

Just like with ATOM, is a D-vault missing because it is a major coin? Or what is the thought behind enabling only 3 vaults?

4

Hey @Leonoors_Cryptoman
There is no D vault. It is a risk framework parameter to classify each asset’s market risk score.
For example: To classify the liquidity of an asset, it can have a score from A to D.
This does not have any relationship with the vault terminology. Both of them are entirely different.
Currently, there will only be a maximum of three vaults for all the assets, and will be classified as A, B, and C