Maker Protocol Approves Crucial Offboarding of Vault

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Crypto News > Maker Protocol Approves Crucial Offboarding of Vault

Maker Protocol and the off boarding process for vault types LINK-A, MATIC-A, YFI-A, and UNIV2USDCETH-A. An Executive Vote has recently taken place, resulting in the approval of this offboarding initiative. The offboarding process for the aforementioned vault types is scheduled to commence on May 22, 2023, precisely at 14:00 UTC

The Maker Protocol will be implementing specific parameters related to these vault types.

  1. Liquidation Penalty: During the offboarding process, the liquidation penalty will be effectively reduced to 0%. This means that if your collateralization ratio falls below the required threshold, there will be no penalty imposed upon liquidation. This measure aims to alleviate any undue burden on users.
  2. Tip: As an additional incentive, Keepers who participate in liquidation auctions are typically rewarded with a tip. However, throughout the offboarding process, the tip amount will be adjusted to 0, effectively eliminating any additional rewards for Keepers. This ensures a fair and neutral liquidation environment.
  3. Chip: When withdrawing collateral from a vault, a chip fee is typically levied. However, during this offboarding phase, the chip value will be set to 0. This means that users closing their LINK-A, MATIC-A, YFI-A, or UNIV2USDCETH-A vaults will not incur any fees, further simplifying the offboarding procedure.
  4. Liquidation Ratio: The liquidation ratio will be established at a fixed rate of 10,000%. This ratio serves as a critical determinant for avoiding liquidation. Vaults holding positions with a collateralization ratio below 10,000% will be subject to the liquidation process.

In order to safeguard your assets effectively, if you currently possess any positions in LINK-A, MATIC-A, YFI-A, or UNIV2USDCETH-A vaults, you promptly settle your outstanding DAI debt in full and proceed to close your vaults before the deployment of the offboarding parameters. By this advice, you will significantly reduce the risk of liquidation and any associated complications.

The offboarding of these specific vault types does not have any bearing on the remaining vault types within the Maker Protocol. This measure exclusively pertains to LINK-A, MATIC-A, YFI-A, and UNIV2USDCETH-A users

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