Risk Parameters

Initial Risk Parameters

Red Bank - Global Params

Param Name	Value	Description
Safety Fund Fee Share	50%	% of protocol revenue that goes to safety fund, the remainder goes to stakers.
Revision	1	if a chain winds back blocks it should increment revision that is the reason for this blocks timeout for IBC transfer & seconds timeout for IBC transfer
Slippage Tolerance	1%	this is for swapping protocol revenue into axlUSDC/MARS before sending via IBC to the Mars Hub
Close Factor	50%	Max % of debt that's liquidatable

Red Bank - Asset Specific Params

Param Name	Value ATOM	Value OSMO	Value axlUSDC	Value stATOM	Description
Reserve Factor	20%	20%	20%	20%	% Of Borrow interest that stays in the protocol as fees
Max Loan To Value	68%	59%	74%	54.5%	Max percentage of collateral that can be borrowed
Liquidation Threshold	70%	61%	75%	55%	LTV at which the loan is defined as undercollateralized and can be liquidated
Liquidation Bonus	15%	15%	10%	15%	% of extra collateral the liquidator gets as a bonus
Active	yes	yes	yes	yes	Wether any action can be done with the asset
Deposit Enabled	yes	yes	yes	yes	Wether addresses can deposit
Borrow Enabled	yes	yes	yes	no	Wether addresses can borrow
Uoptimal	60%	60%	80%	60%	Target utilization rate
Base	0	0	0	0	Interest Rate at 0 utilization rate
slope 1	15%	15%	20%	10%	slope for when U < Uoptimal
slope 2	300%	300%	200%	300%	slope for when U > Uoptimal
Deposit Cap	100,000	2,500,000	500,000	45,000	Max amount that can be deposited into the Red Bank

NOTE

Red Bank deposit caps are denominated in the deposit token itself (i.e. 2.5M OSMO)

Red Bank Deposit Incentives

Param Name	Value ATOM	Value OSMO	Value axlUSDC	Description
Emissions Per Second	0.1060950	0.23148200	0.04822500	How many MARS will be rewarded per second
Emissions Per Period	275,000	600,000	125,000	How many MARS will be rewarded during the whole duration
Start Time				When should emissions calculation begin
Duration (in seconds)	2,592,000	2,592,000	2,592,000	How long should emissions calculations last

MARS/OSMO pool

Param Name	Value	Description
Swap Fee	0.2%	The swap fee is the cut of all swaps that goes to the Liquidity Providers (LPs) for a pool. Suppose a pool has a swap fee s. Then if a user wants to swap T tokens in the pool, sT tokens go to the LP's, and then (1 - s)T tokens are swapped according to the AMM swap function.
Exit Fee	0%	The exit fee is a fee that is applied to LP's that want to remove their liquidity from the pool. Suppose a pool has an exit fee e. If they currently have S LP shares, then when they remove their liquidity they get tokens worth (1 - e)S shares back. The remaining eS shares are then burned, and the tokens corresponding to these shares are kept as liquidity.
Future Governor	No one	Osmosis plans to allow every pool to act as a DAO, with its own governance in a future upgrade. To facilitate this transition, we allow pools to specify who the governor should be as a string. There are currently 3 options for the future governor. No one will govern it. This is done by leaving the future governor string as blank. Allow a given address to govern it. This is done by setting the future governor as a bech32 address. Lockups to a token. This is the full DAO scenario. The future governor specifies a token denomination denom, and a lockup duration duration. This says that "all tokens of denomination denom that are locked up for duration or longer, have equal say in governance of this pool".
Weights	50/50	This defines the weights of the pool - https://balancer.fi/whitepaper.pdf
Smooth Weight Change Params	NA	This allows pool governance to smoothly change the weights of the assets it holds in the pool. So it can slowly move from a 2:1 ratio, to a 1:1 ratio. Currently, smooth weight changes are implemented as a linear change in weight ratios over a given duration of time. So weights changed from 4:1 to 2:2 over 2 days, then at day 1 of the change, the weights would be 3:1.5, and at day 2 its 2:2, and will remain at these weight ratios.
Pool Creation Fee	100 OSMO	Preset value from Osmosis

External OSMO/MARS Pool Incentives on Osmosis

Param Name	Value	Description
Start time (UNIX)		When should incentives begin
Duration	14	How long should a user have MARS locked up for to be able to start claiming incentives (1, 7, or 14 days)
Epoch	30	How many days should this gauge stay active for
Reward	750,000	How much total MARS do you want to reward while this guage is active

TWAP Downtime Detector

Param Name	Value	Description
Downtime	30 mins	Downtime period options that you can query, to be: 30seconds, 1 min, 2 min, 3 min, 4 min, 5 min, 10 min, 20 min, 30 min, 40 min, 50 min, 1 hr, 1.5hr, 2 hr, 2.5 hr, 3 hr, 4 hr, 5 hr, 6 hr, 9hr, 12hr, 18hr, 24hr, 36hr, 48hr.
Recovery	120 mins	Recovery seconds since the chain has been down for downtime period