Silo

Date: 16 February 2023

Author: Chutoro

Reviewed by: Tenzent, Aiham

This is a proposal to extend the following credit lines:

• CVX - 150k
• WBTC - 150k
• FXS - 150k
• CRV - 150k
• 1INCH - 150k
• YFI - 150k
• BAT - 150k
• SNX - 150k
• RAI - 150k
• MKR - 150k

The assessment of on-chain liquidity can be viewed here.

This is from Sheet 1/Explanation from the above spreadsheet This framework aims to test whether each token has sufficient on-chain liquidity to receive a 150k $XAI credit line.

1. $XAI limit multiplied by each assets liquidation threshold to determine $ value of asset to be liquidated
2. Amount from 1. divided by spot price of asset to determine number of assets to be sold assuming 1 account borrows 100% of credit line and is liquidated
3. Sale of 2. simulated on Matchaswap for $ETH - if slippage < liquidation fee asset is deemed safe for 150k $XAI credit line (can be extended further pending future proposal)
4. Assets that failed 3. had 2. re-run against a 150k $XAI credit line - if slippage < liquidation fee asset is deemed safe for 150k $XAI credit line (regular review of on-chain liquidity recommended)

Refer to: Framework for calculations Sale Simulations for Matchaswap liquidation simulation

References:

Risk assessment framework