Cheaper stETH Borrowing and WBTC Fees Reduction
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%.
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
- 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%
- 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
- 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.
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 email@example.com or the Oasis Channel on Discord.
May 16, 2022