[Proposal] Increase Collateral Factor For DPI To 50%

Summary

Set DPI’s collateral factor to 50% based on the tokens inside the index that are already on CREAM.

Motivation

DPI is the leading DeFi index and CREAM should capitalize on our first mover advantage in listing it by allowing DPI depositors to borrow against it, bringing in more deposits and revenue to CREAM.

Description

For context here is the proposal to list DPI which has a lot of supporting data and evidence for this discussion.

Since it’s an index composed of tokens already in CREAM and other tokens inside the index are about to be listed on CREAM (e.g. SNX) DPI has effectively already been vetted by CREAM community. DPI should be considered the safest asset on CREAM outside of stables and ETH. I propose we copy the collateral factors of DPI’s underlying tokens as the initial collateral rate for DPI setting it at 50% LTV. Considering it’s more stable due to diversification and tokens are held 1:1 in reserve by a smart contract it should actually be substantially higher. Initially setting it equal to its components is a good precaution until DPI has a longer track record. Here is some data analysis on relative stability of DPI vs its underlying tokens and volatility compare to ETH:



Proposal

For: Increase DPI collateral factor to 50%
Against: Do nothing and keep DPI at 0% collateral factor

1 Like

I agree with that. It’s a good idea.

I will submit a voting for that later today, but with collateral factor at level C3 (45%).

1 Like

The proposal just submitted. The voting will start soon.