To update the values of Debt Ceiling for vaults A, B and C along with the CR ratio for upcoming assets

Harbor Discussion
1

The following discussion is to revise the numbers assigned for upcoming vaults on the Harbor protocol for EVMOS, JUNO, SCRT, stOsmo. Based on user behaviour and best utilization of vaults A, B and C, it has been noticed that Vaults A are preferred by users which have less Collaterisation ratio. Combining with the risk parameters as well, we intend to change the debt ceiling for vaults A, B and C for upcoming assets. This gives users capital efficiency and allows them to mint CMST against it without compromising the overall health of the protocol. The numbers for the upcoming assets are as follow:

StOsmo (Vault- CR ratio/ Debt Ceiling)
A- 170%/ 50k
B-200%/30k
C-220%/20k

SCRT
A- 170%/ 50k
B-200%/30k
C-220%/20k

EVMOS
A- 180%/ 40k
B-210%/25k
C-230%/20k

JUNO
A- 180%/ 40k
B-210%/25k
C-230%/20k

LUNA
A- 180%/ 40k
B-210%/25k
C-230%/20k

2

I think it is logical that people have a preference for the lower collateralization ratios, since it requires less deposit for the same amount of CMST.

Does changing the ceilings towards the lower collateralization ratios pose an additional risk?

3

Not as such. Because even the minimum vaults have a very less ceiling as of now. We are prepared for atleast 5 times larger debt ceiling numbers than the ones which are currently in place. Also another thing which affects this is how long the protocol takes to liquidate the collateral, recover the loan and close the position. With the last upgrade in change in parameters of auction, we have seen the auctions close very fast with ore users bidding for the discounted assets.

4

Thanks for the reply!

Good to see that all bases are covered.