Increase Collateral Factor of $SFI (Saffron.Finance) to 45%

Summary

Increase collateral factor of SFI to 45%

For

Increase collateral factor of SFI to 45%

Against

Do nothing (i.e. SFI remains with a collateral factor of 0%)

Motivation

It is important to raise collateral factors of those assets with 0%. 45% is a reasonable collateral factor for a governance token like SFI to begin. As a benchmark, in another CDO ecosystem (e.g. Unit Protocol), SFI began with an initial collateral ratio of 50%.

By enabling SFI as collateral, it provides a great incentive for SFI holders to supply in C.R.E.A.M. Finance, leading to higher TVL for the protocol.

SFI is already trading on multiple centralized exchanges (Poloniex, Gate.io, Indodax). As Saffron continues to build across chains, (e.g. exists on C.R.E.A.M Fantom, BSC, HECO), the exposure and number of holders has increased significantly (>12,000 wallets), diversifying distribution of SFI while mitigating downside price risk. Moreover, the team has locked a significant portion of their tokens for >1 year, further mitigating risk on a rug pull.

3 Likes

45% sounds about right. Can someone put this to a vote? I will happily vote yes.

I agree. 45% sounds reasonable. Let’s put this into formal voting.