Reduce Borrow Collateral Factor for rsETH to 0 on Ethereum Markets
AI summary
This proposal aims to prevent rsETH, a liquid restaking token from Kelp DAO, from being used as collateral for new loans on Compound's Ethereum markets. It does this by setting rsETH's borrow collateral factor to zero. This change is a direct response to recent security concerns and discussions surrounding a potential exploit related to Kelp DAO.
If passed, users will no longer be able to use rsETH as collateral to borrow other assets on Compound, potentially reducing risk for the protocol. This change will not immediately liquidate existing loans that used rsETH as collateral, but it will affect users who planned to take out new loans with rsETH.
Voting results
🐳 Whale votes
0 votes > 5% VPFull proposal
Reduce Borrow Collateral Factor for rsETH to 0 on Ethereum Markets
This proposal reduces the collateral factor utilized on borrow for rsETH--once executed, rsETH on Ethereum markets can not be used as collateral for new loans. Note that this proposal will not directly trigger any liquidations as the liquidation collateral factor remains unchanged.
Please see the forums for further details