New Collateral Factor Proposal: Raise collateral factor of AMP on ETH v1 from 45% (C4) to 60% (C5) and collateral cap from 1,000,000,000 crAMP to 3,000,000,000 crAMP

Summary

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).

Voting options:

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

Motivation

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.

Background

Amp is an extensible platform for collateralizing asset transfers. More information about AMP can be found at https://amptoken.org/, https://flexa.network/, and the original listing proposal.

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