[GIP-217] MKR Freeze and LT Adjustment
AI summary
This proposal recommends temporarily freezing MKR (MakerDAO's governance token) as collateral on Gearbox and reducing its Loan-to-Value (LTV) ratio. This means users would no longer be able to use MKR to borrow other assets on Gearbox, and existing MKR collateral would be subject to a lower maximum borrowing limit. The motivation stems from recent, unexplained security changes made by MakerDAO and the transition of MakerDAO's ecosystem from MKR to SKY tokens, which could impact MKR's liquidity and value.
If passed, users will not be able to open new positions using MKR as collateral on Gearbox. Existing positions with MKR collateral will see their LTV ratio reduced from 80% to 70%, potentially requiring them to add more collateral or face liquidation if their loan-to-value exceeds the new limit. This change aims to protect Gearbox from potential risks associated with MKR's changing status and MakerDAO's recent actions, but it might inconvenience users who wish to leverage their MKR.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Author
Chaos Labs
Overview
In light of recent events and the lack of demand, Chaos Labs recommends temporarily freezing MKR as collateral on Gearbox and reducing its LT in the WETH, WBTC, and USDC pools.
Motivation
MakerDAO/Sky yesterday proposed and passed an out-of-schedule executive vote “to protect the project from potential governance attacks.” This involved changes to the LSE-MKR-A risk parameters and a reduction in the GSM Pause Delay. There were minimal explanations …