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Adjustment Proposal of Clearing Parameters for CRVV1ETHSTETH-A

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On March 9, it was reported that a new executive vote was being held on the Maker governance portal. If the implementation proposal is approved, the clearing pa

Adjustment Proposal of Clearing Parameters for CRVV1ETHSTETH-A

On March 9, it was reported that a new executive vote was being held on the Maker governance portal. If the implementation proposal is approved, the clearing parameters of CRVV1ETHSTETH-A will be adjusted as follows: increase the local clearing limit from 3 million DAI to 5 million DAI; Reduce the auction price multiplier from 1.20 to 1.10; Reduce the maximum auction duration from 8400 seconds to 7200 seconds; Increase the maximum auction withdrawal from 0.40 to 0.45.

Maker governance portal carries out new execution voting

Analysis based on this information:


The Maker governance portal has recently announced a new executive vote that proposes changes to the clearing parameters of CRVV1ETHSTETH-A. If this proposal gets the green light, it would mean that the community has approved the adjustments made to these parameters. The proposal suggests making four changes to the existing parameters of CRVV1ETHSTETH-A, increasing the local clearing limit from 3 million DAI to 5 million DAI.

This change would offer greater flexibility by allowing more collateral to be added to the vault. Additionally, this would provide a greater borrowing capacity to Maker Vault users. Moreover, reducing the auction price multiplier from 1.20 to 1.10 would make it easier for users to manage their vaults. The reduction in auction duration from 8400 seconds to 7200 seconds would shorten the duration of any auction process. This adjustment would ensure a faster and more efficient liquidation of collateral.

Lastly, increasing the maximum auction withdrawal from 0.40 to 0.45 would allow users to retrieve more collateral than in the previous arrangement. This would be beneficial for users who wish to withdraw their accumulated asset safely. These changes may have been proposed to address some challenges such as the excessive collateral in circulation, which may affect the stability of the network.

The proposal appears to have gained supporters because of the benefits it provides, but some drawbacks may result. If the adjustment influences the balance of the system and affects the liquidity of the token and asset prices, it could lead to the possibility of significant loss to the user. In this case, the MakerDAO system should reassess the parameters and make the necessary changes before the collateral levels become a problem.

In conclusion, the proposed adjustments to the clearing parameters of CRVV1ETHSTETH-A offer great benefits to users of the MakerDAO system. The governance portal’s decision to decrease auction duration and increase auction withdrawal limits will make the platform more user-friendly. However, MakerDAO must be vigilant of any potential risks that may result from these changes in the long-term.

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