This proposal would increase the collateral factor of AMP on ETH v1 from 45% (C4) to 60% (C5) and the collateral cap from 1,000,000,000 crAMP to 3,000,000,000 crAMP.
AMP is a platform for collateralizing asset transfers and is used as collateral to facilitate payments on the Flexa network.
AMP is ranked in the top 30-50 tokens by market capitalization on
[Coingecko] (Amp price, chart, market cap and info | CoinGecko) and
[Coinmarketcap] (Amp price today, AMP live marketcap, chart, and info | CoinMarketCap) and has between $50-100M daily trading volume (AMP/USD on Coinbase is the most active pair).
Additionally, AMP is one of the top traded tokens on
[Uniswap] (Uniswap Info) (top 50 volume),
[Sushiswap] (SushiSwap Vision) (top 50 volume), and
[Balancer] (Pool management - Balancer) v1 (top 10 volume).
For: Raise the collateral factor of AMP from 45% (C4) to 60% (C5) and the collateral cap from 1,000,000,000 crAMP to 3,000,000,000 crAMP.
Against: Do not make any changes to AMP market
The C.R.E.A.M. community first made AMP available as a collateral asset in February 2021. In April 2021, the AMP collateral factor was increased from 0% (C0) to 45% (C4). Since then, AMP has been listed on Coinbase, Binance.us and many global exchanges. AMP staked to the Flexa network has grown to over $1.4 billion and is ranked #1 in TVL for Payments on DeFi Pulse.
The AMP community would like to expand its partnership with C.R.E.A.M. by allowing users to collateralize a larger percentage of their AMP tokens for borrowing other assets. Increasing the collateral cap to 3,000,000,000 crAMP would allow approximately $2.1M total borrowing against $3.6M of AMP (60% LTV). This maximum value is less than 5% of daily average volume on Coinbase AMP/USD alone, and less than 50% of the existing liquidity on either Uniswap or Sushiswap. The AMP community believes that increasing the collateral factor to 60% and the collateral cap to 3,000,000,000 crAMP does not pose any risk to C.R.E.A.M. lenders, borrowers, or the protocol itself.