LIP-007: Proposal for Adjusting MCR of Classic Collateral Assets

LIP-007 proposes to reduce the Minimal Collateral Ratio (MCR) for specific collateral types to increase the Loan-to-Value (LTV) ratio

🔹This proposal is only for the Classic section, allowing a more competitive experience for users.

Vote now: https://t.co/ERFuTj09Nc

Voting period: 4:00AM, 15th Sep. to 4:00AM, 18th September 2024 (UTC+0)

This proposal includes the following:

* Reduction of the MCR of specific assets

* Increase of the LTV for collateral assets, to match the new MCR values

* These adjustments would be only for the classic section, allowing a more competitive experience for users.

The proposal comes with changes in both LTV and MCR for Classic collaterals like $BNB, $slisBNB, $ETH, $wBETH, $BTCB, and $wstETH. These changes, in turn, come with benefits like:

* An increased borrowing capacity, achieved by a higher LTV which allows users borrow more against their collateral

* More flexible and less restrictive borrowing environment for users, potentially increasing engagement and exposure

Voting options:

Yes: Approve the propose MCR adjustments for the Classic section, lowering the MCR and increasing LTV for the listed collateral assets.

No: Reject the proposal and maintain the current MCR values for the Classic Section.