Enable Staked Atom (stATOM) as collateral for the minting of CMST

Harbor Discussion
1

The purpose of this thread is to enable Staked Atom (stAtom) 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 the creation of three vaults are outlined in the following proposal.

Parameters for stAtom-A vault:

  • CR ratio: 170%
  • Stability fee: 4.5%
  • Debt ceiling: 20k
  • Debt Floor value: 100$
  • Drawdown fee: 0.5%
  • Closing fee: 0.5%
  • Liquidation penalty:15%

Parameters for stAtom-B vault:

  • CR ratio: 200%
  • Stability fee: 3.5%
  • Debt ceiling: 35k
  • Debt Floor value: 100$
  • Drawdown fee: 0.5%
  • Closing fee: 0.5%
  • Liquidation penalty:15%

Parameters for stAtom-C vault:

  • CR ratio: 220%
  • Stability fee: 2.5%
  • Debt ceiling: 45k
  • Debt Floor value:100$
  • Drawdown fee: 0.5%
  • Closing fee: 0.5%
  • Liquidation penalty: 15%

The above numbers are decided as per the risk parameter blog and the team is currently working on more relevant parameters to determine more accurate numbers for staked derivative assets.

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Good thing to see that stATOM receives a higher CR ratio.

I am not entirely sure if we should use Liquid Staked assets already as serving for collateral. The products are too new imo and not been battle-tested yet.

At this stage I would not be a fan (yet)

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Liquid staked assets will give users an additional opportunity to utilize their assets and mint CMST against it which can be used onto Cswap/ Commodo to earn additional yields on it. As you correctly pointed out that the products are relatively new and for this particular reason we do have a debt ceiling of 100k total across all 3 vaults. If you compare it with the Atom vault, its 10 times more i.e. 1 million.

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Thanks! So the risk is limited to $100k if I understand correctly? Making the exposure in case something goes wrong already smaller.

Are there also more plans for liquid staked assets? Because that accumulated makes the risk bigger again ofcourse.

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Yes that’s correct it is limited to $100k. Yes there are plans to get a couple of more staked assets but their debt ceiling will be lesser than stAtom. And we would first want to test stAtom vaults. If all goes well, then slowly we will add more staked assets.

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6

Great things coming in harbour

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