LP Tokens of cSwap pools as collateral to mint CMST

As per title would it be possible to use LP Tokens of cSwap pools as collateral to mint CMST on Harbor?

Pools paired with CMST have a lower volatility and their LP tokens would be a very viable form of collateral for Harbor.

Yes the team is looking at the possibility of using LP tokens to mint CMST. However there are certain challenges that are associated with it like determining the collateral ratio of different pool pairs, the effect of liquidations on the Pool liquidity, etc.

It sounds like a risky move imo.

$CMST was designed to be overcollateralized and should have some kind of longer term stability.
Allowing the LP tokens to be collateral as well, means that you use the same token on 2 places at once. Which effectively means that the collateral provided is only half secured (this statement is a little rough on the edges, I know).

It also adds additional layers of complexity, because if someone removes his funds from the pool, the open position on $CMST should also automatically be closed. And what happens if the user wants to remove the LP tokens, but does not have enough $CMST to close the position? Will it be liquidated? Will it stop the user from withdrawing the funds?

It feels like an opportunity, but will make things so much more difficult imo that it will be nearly impossible to understand how things are exactly working. Not to speak about all the new possible attack vectors which become available…