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Maker Protocol Adjusts 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 p…

Maker Protocol Adjusts 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 protocol has announced a new executive vote on their governance portal which aims to modify the clearing parameters of CRVV1ETHSTETH-A. If approved, the changes will include increasing the local clearing limit from 3 million DAI to 5 million DAI, reducing the auction price multiplier from 1.20 to 1.10, reducing the maximum auction duration from 8400 seconds to 7200 seconds, and increasing the maximum auction withdrawal from 0.40 to 0.45.

The clearing parameters of CRVV1ETHSTETH-A are crucial to its stability, and these changes reflect Maker’s mission to provide more flexibility and control to their users. The increase in the local clearing limit from 3 million DAI to 5 million DAI allows investors to borrow more DAI through vaults backed by CRVV1ETHSTETH-A collateral. This change could increase the stability of the Maker protocol by reducing the risk of abrupt liquidations and increasing the collateralization ratio.

Furthermore, reducing the auction price multiplier from 1.20 to 1.10 and reducing the maximum auction duration from 8400 seconds to 7200 seconds provides a safety net for borrowers by allowing them to pay back their debt at lower interest rates and shorter auction periods. These changes also allow Maker to liquidate under-collateralized vaults more quickly and efficiently.

On the other hand, increasing the maximum auction withdrawal from 0.40 to 0.45 encourages bidders to compete for auctions, resulting in higher auction prices, which reduces the debt owed by vault owners. This change could incentivize more bidders and stabilizes the Clearing processes.

Overall, the proposed changes to CRVV1ETHSTETH-A’s clearing parameters reflect the ongoing growth of the Maker protocol and its commitment to providing flexibility and stability to its users. As the DeFi ecosystem expands, it is becoming more important for protocols like Maker to adapt and evolve with the changing demands of its users.

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