- Edited
Thanks for putting the the proposal forward!
Vault Parameters: Collateral Ratio: 400%
I'm of two minds here
A longer term payoff is scary in crypto mostly because of how fast crypto can change. Locking up ETH for 15 years is hard to really wrap your mind around. (ETH isn't even that old!)
But I think once the merge happens we'll see a "risk free" rate of 7% (Likely more since the tips will be going to stakers) and that would almost require other protocols to increase their yields above that threshold because otherwise it's not worth risking the ETH, that should reduce the repayment time quite a bit.
Limiting the risk initially I think is a good idea, but I think some kind of threshold for when the Collateral Ratio (Or Deposit ratio as @daveytea said) can get to parity with DIA is important. I also think that letting users see how long it's going to be until their loan is paid back would put that into their hands. Is the user ok with not having their ETH paid back until 2036? if so, that's probably ok. If not, they won't use it.
alETH Debt Cap: 2000 alETH
This is great, I think this limit will be reached very quickly, but that's ok. Better safe than rekt. Again though if there was some set (hopefully publicly available) metrics that needed to be reached to increase this cap. (Time, Volumes, liquidity, etc)
Eth to alETH direct Purchases
Would it be possible to use the spare ETH in the Transmuter to put into the yvSTETH or yvSETH vault to juice the returns some? I know you mentioned that may introduce some slippage, but I think I'd agree with @squidgle that it'd be worth the extra dev work to allow users to take advantage of the increased yield
Farms
I think I'd be in favor of reducing the single sided ALCX by 5% and adding it to the alETH/ETH Pool as suggested by SathFenrir