Alchemix Request For Comment (ARC) #1: Page 4

Alchemix Request For Comment (ARC) #1

aLeo

SathFenrir This choice will not be easily made, and we suspect that there will be many subsequent governance votes put forth shortly after the release of alETH to lower the collateralization ratio. Perhaps a timeline can be set before the launch guaranteeing a revisit of the ratio within N days of the launch to lower the collateralization ratio, to incentivize a more conservative initial condition.

This, to be honest

gitgatt So with that said, I feel the 400% collateralization ratio is the prudent course of action. However, I would support and like to see a roadmap and a set of measurable criteria which would lower the collateralization ratio over time to be at parity with the existing alUSD loan structure. Perhaps this can be a process which all future "al"ASSET launches can follow, where the initial launch carries a very high collateralization ratio to test the waters with early adopters and then the requirements are relaxed over time.

This too

gitgatt The reasoning behind keeping the ALCX/ETH SLP at current levels is because of the tremendous volatility the market is experiencing. We've seen a lot of ALCX holders run for cover into the single stake ALCX pool as the markets got choppy (fearing IL). I believe this project is about to experience a huge influx of investment now that the audit has shown a trusted codebase and we will now be included into Sushi Onsen and Curve rewards. This also means that we will probably be featured on DeFi Pulse and may even start to be discussed with other DeFi blue chips. All this is to say that we will need deep liquidity in the only place where people can buy ALCX in quantity. We need to make sure and reward the LPs who have the most to lose in this event (again, because of IL). Later on, I'd advocate for rewards to return to ALCX staking when it is being used for DAO governance.

I third that

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