As per the outcome of this poll voted by the Maker Governance on May 11th, WSTETH-B will be added as collateral to the Maker protocol. Adding a new option to borrow for a cheaper rate, as long as the collateralization ratio is kept above 185%.

Also, Maker governance voted for a reduction of WBTC (Wrapped Bitcoin) Stability Fee, for both WBTC-A & WBTC-B.

What has changed?

WBTC Stability Fees Changes

• Lower the WBTC-A Stability Fee from 3.25% to 2.25%.
• Lower the WBTC-B Stability Fee from 4.5% to 4.0%.

WSTETH-B Onboarding

The Maker community expressed the willingness to expand Maker’s products with Lido’s stETH, by adding stETH-B. This is to offer a cheaper variable annual fee option for users that are keeping a higher collateralization ratio.

Initial Vault Parameters

• Underlying Collateral: wstETH (Wrapped Lido Staked ETH)
• Stability Fee: 0.75%
• Liquidation Ratio: 185%
• Maximum Debt Ceiling (line): 150 million DAI
• Debt Floor (dust): 5,000 DAI
• Target Available Debt (gap): 15 million DAI
• Ceiling Increase Cooldown (ttl): 8 hours

Liquidation Parameters

• Auction Price Function (calc): Exponential Stair Step
• Price Change Multiplier (cut): 0.99
• Price Change Interval (step): 90 seconds
• Auction Price Multiplier (buf): 1.2
• Liquidation Penalty (chop): 13%

Limits

• Local Liquidation Limit (ilk.hole): 10 million DAI
• Maximum Auction Drawdown (cusp): 0.4
• Maximum Auction Duration (tail): 140 minutes
• Breaker Price Tolerance (tolerance): 0.5

Incentives

• Proportional Kick Incentive (chip): 0.1%
• Flat Kick Incentive (tip): 300 DAI

You can read more details about the proposal and reasons here.

What does this mean for you?

With these changes, you can:

• Borrow or Multiply on Oasis.app using wstETH-B. Currently, having a wstETH-B position with a collateralization ratio of 200% is three times cheaper than using wstETH-A. Start borrowing wstETH-B here. 
  
• Borrow or Multiply using WBTC on Oasis.app at lower cost. Want to buy the dip? Open a wBTC-B here. 

Getting help

If you experience any issues with your Vault or have any questions regarding your Vault or Oasis.app in general, you can browse our Knowledge Base, contact us at support@oasis.app or the Oasis Channel on Discord.

May 16, 2022