Exclude low liquidity assets from V2 stability mechanism

We should have a serious discussion about the risk of low liquidity assets being insured by the stability mechanism.

I propose for the safety of stability mechanism depositors that all lending/borrowing assets with dex liquidity under 2m ada are excluded from SM insurance.

I feel 2m+ liquidity pairs to be relatively more safe (although even at this level it is not 100% guaranteed) for participants. We should not be in a situation where the SM is dumping LENFI to buy shit coins or micro caps.

Would you support a 2m ada minimum dex liquidity for an asset to be covered under the V2 stability mechanism?
  • Yes
  • No
0 voters
5 Likes

Yes this is needed because it’s another step towards keeping protocol safe

3 Likes