Vaults Offboarding Proposal Passed (BAL, COMP, AAVE)
As of November 19th 2021, as part of the weekly Maker Governance Cycle, MKR holders voted to initiate the offboarding of some vault types. These vaults will be removed from the Maker Protocol either because there is low demand for them, or the low liquidity on the Ethereum markets prevents from increasing the debt ceiling further due to high slippage. In either case, the gas cost for maintaining oracles for these collaterals is greater than inflow from the stability fee.
The vaults involved are BAL-A, COMP-A, AAVE-A and the parameters will change as detailed below to accommodate the offboarding*.
BAL-A
- Lower the Liquidation Penalty (chop) to 0%.
- Lower the Debt Ceiling (line) to 0 DAI.
- Increase the Liquidation Ratio from 165% to 2300% over 30 days using dss-lerp.
COMP-A
- Lower the Liquidation Penalty (chop) to 0%.
- Lower the Debt Ceiling (line) to 0 DAI.
- Increase the Liquidation Ratio from 165% to 2000% over 30 days using dss-lerp.
AAVE-A
- Lower the Liquidation Penalty (chop) to 0%.
- Lower the Debt Ceiling (line) to 0 DAI.
- Increase the Liquidation Ratio from 165% to 2100% over 30 days using dss-lerp.
What does this mean for you?
This change will only affect you if you have a vault of one of the above mentioned types.
The suggested action is to close the vault by paying back the debt, and withdrawing the collateral. You can do so straight away with Oasis.app. With the recently added Multiply functionality the closing can be done in a single transaction without the need for obtaining DAI on the market, watch how to do it here.
The new parameters were set in a way to minimize the damage done to existing vault owners while ensuring that sufficient amounts of debt will either be repaid or less desirable liquidated with minimal costs for the vault owners. Although the penalties are going to 0, there could still be a risk of losing collateral, e.g. if a vault owner lets his vault get liquidated after this change. Sharp market downturns of the collateral, or low liquidity might result in losing more collateral than expected by the user through the liquidation.
You can read more details here.
*NOTE: Although the Vaults will be offboarded, on Oasis.app you will still have the possibility to close them out and to see their history also after November 22d.
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November 22, 2021
