Currently, our platform mandates a minimum collateral of $1000 for users to access borrowing facilities. In Degen Mode, we propose to lower this threshold to $500, allowing a broader spectrum of users to participate and benefit from our services.
Borrowing limits will also be adjusted to align with the reduced collateral requirement. Instead of the current $5000 borrowing limit, users in Degen Mode will have access to borrow up to $2500, providing them with more manageable borrowing options.
Benefits
Lowering collateral requirements will enable a broader segment of users, including newcomers and those with limited capital, to participate in borrowing and lending activities.
We want to hear from the community for any better approaches/feedback.
Reducing the threshold to $500 is good, but I think it may be more interesting to try to reduce it even further, to $250. Probably more users can try this feature.
I believe reducing the threshold to 500$ is good, makes it a lot more accessible.
I would like for it to go lower than 500$ minimum but im afraid it’ll make a lot of liquidation due to how volatile the market recently
I agree with this proposal
I think more users will be onbord
question is : Is it okay for protocol stability ? for liquidation process ? there is trade off to reduce collaral requirement ?
In the face of this competitive market, growing your user base and TVL is the ultimate goal and if that must be achieved, reducing lending/Borrowing entry is a must hence the idea to reduce it is inline.
Meanwhile always ensure that bad debts are liquidated to avoid making losses for the protocol.
