Maybe i wasn’t explicit enough. I was referring to octoder 21 poll. When Gauntlet initially asked community to chose risk profile Moderate risk level And at that time, mind you, community was presented with that:
| Current Collateral Factor (Current CF) | Conservative CF | Moderate CF | Aggressive CF |
|---|---|---|---|
| AAVE (50%) | 55% | 60% | 70% |
| BAT (65%) | 60% | 65% | 65% |
| COMP (60%) | 55% | 60% | 60% |
| DAI (75%) | 75% | 75% | 80% |
| ETH (75%) | 75% | 75% | 80% |
| LINK (50%) | 50% | 60% | 65% |
| MKR (35%) | 40% | 50% | 65% |
| SUSHI (40%) | 40% | 50% | 65% |
| UNI (60%) | 60% | 60% | 65% |
| USDC (75%) | 70% | 80% | 80% |
| WBTC (65%) | 60% | 65% | 70% |
| YFI (35%) | 45% | 50% | 60% |
| ZRX (65%) | 60% | 65% | 65% |
As you see, at that time Moderate Risk And Agressive Risk for USDC was 80 CF. Now, over 6 month later, with rate hiking, QT on the way, inflation at the highs of the decades, and war in europe you saying that your model show Moderate risk will be CF 87. Well, let’s take it does. What will be the numbers for Agressive then and for Conservative approach? The point here is: It might be time for community to switch the gear for the lower speed. And for that it would be good to see alternative numbers your model could provide with different risk parameters.
Personally i don’t think increasing CF will increase borrow at all in current market conditions, and thus, your point of increasing efficiency is moot. What it will do, it will increase risk for users, who now going to be liquidated at lower price levels, likely loosing more money in process. I see that it might have some benefits for particular borrowers as increased CF might give them more breathing room in case of further downfall of crypto markets.
I’m still open in general to possibility of further CF increases, but we are now living in totally different world than 6 month ago which no doubt is translating on crypto markets too. I believe it deserves whole picture, rather than just following your mandate recieved on very different circumstances. Hope that cleared what i was asking you enough. Cause as for now it really just looks like Gauntlet is pushing CF only up according to model. And even if Compound house isn’t on fire currently, the whole neighboorhood arount that house is already burning. And i just can’t stop wondering, shouldn’t we be more conservative here, even if it translates in lower efficiency. You know, just in case.