Risk assessment & Increase of CRV cauldron Interest rate

💡Idea Discussions
1

Hi guys, as most of you know Mitch has currently borrowed $20M from Abracadabra, the main problen is not that but the other $86M he has borrowe between AAVE, FRAX and Inverse.

The biggest problem is on-chain liquidity, which according to my research indicated CRV could not even witstand a 6M liquidation before everything spirals down.

the biggest issue for us is bad debt, and I am hoping we’ve learnt our lesson from UST and how it is important to sometimes risk off and ensure protocol longevity.

Have a look at the following document and give me some thoughts.

Link

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Good points. We’ve seen systemic risk exist and Abra narrowly escape from UST and then FTT, but it’s like playing roulette, eventually it will hurt us… CRV is a different animal then the other two, yet allowing that much leverage to exist (relative to free float) is troublesome.

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I’d like to restate the need to begin hiking rates on this cauldron.

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