Q&A on Props #112 and #113. Why are the 1-month and 12-month vesting periods being brought back.
02 Dec 2022, 01:43
Q&A on Props #112 and #113
Why are the 1-month and 12-month vesting periods being brought back?
We’ve heard the community’s feedback on props 112 and 113, and we’d like to address it.
The two proposals aim to strengthen the long-term yield strategies for users, which are affected by two features launched on the K11 upgrade.
We have listened to the feedback from our community, especially from our more experienced users, that expressed very early after the K11 launch that removing the vesting period hurt their long-term yield plans.
How does it benefit the users in the long term, and does Kava benefit any of it?
We firmly believe these props correct a situation created in the last release and that our DeFi community will warmly welcome it.
These changes empower users to multiply rewards via vesting periods or receive liquid benefits promptly by leveraging any Kava protocols or a combination.
At Kava, we do not seek immediate benefits. Instead, we want to be close to all users and offer high APYs and accessible tools without resorting to short-term.
That's the reason behind reinstating vesting periods and reducing incentives for bKAVA, Kava Mint, and Kava Swap.
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102 Dec 2022, 01:46
Q&A on changing the system debt limits on the Mint and Lend protocols
Why are there new limits on Mint and Lend protocols?
As a part of a holiday upgrade on the Mint and Lend protocols, borrowing using certain assets has been limited to increase security. In addition, in the past few weeks, we conducted investigations on low-liquidity assets (HARD, SWP, USDX, AKT) and wanted to tighten security on the Mint and Lend protocols.
We want to take extra security measures to ensure users who hold low-liquidity assets don’t get affected due to manipulations that could result in liquidations. Here at Kava, security has always been the number-one priority, and we want to continue to honor this promise for the safety of users’ assets.
We recommend everyone repay their borrows on the Lend protocol 100% to be safe before the change goes into effect on the Lend protocol.
Why can't I mint USDX against my HARD and SWP on the Mint protocol?
One of the points of this new upgrade is limiting the use of those assets, HARD and SWP, on the Mint protocol. It is meant to increase the security of the platform's users by limiting the potential use of those tokens as collateral due to possible price manipulations. This upgrade won't close your open position nor auto-liquidate it. But remember that you won't be able to use these assets to mint new USDX moving forward.
You can continue making repayments on your open position as long as you wish. You may still be able to mint USDX against other collaterals; BUSD, BTCB, XRPB, and KAVA.
Why can't I borrow from HARD, AKT, and USDX on the Lend protocol?
Due to an upgrade in the Lend module, assets such as HARD, AKT, and USDX will not be borrowable or counted as collateral value for borrowing positions. The LTV for these assets will be adjusted to zero, making these uncountable towards the collateral value.
Please note that you have until December 13th to close your borrow positions against your supplied HARD, AKT, and other assets. We recommend you take urgent action to close your borrow positions, or these positions will be liquidated after the deadline passes.
Importantly, you have till January 10th, 2023, to close your borrow positions against your supplied USDX and other assets. We want to give you extra time to re-strategy your borrowing position on the Lend protocol to close your borrow position against USDX accordingly. Or these positions will be liquidated after the deadline passes as well.
Can I still supply HARD, AKT, and USDX to the Lend protocol?
You can still supply these assets or keep them supplied to the Lend protocol to earn incentives as long as you have no outstanding loan. But please be aware that these assets won’t be counted as the collateral value after the change goes into effect and will cause a liquidation if there is an active borrow open when these are supplied.
Again, it is recommended everyone repay their borrows 100% to be safe before the change goes into effect. Your borrow position should be fine if you don’t have any of these assets supplied to the Lend protocol, but it is still recommended to repay your borrow 100% to be safe. It never hurts to double-check.
Q&A on changing the system debt limits on the Mint and Lend protocols. Why are there new limits on Mint and Lend protocols.
Q&A on changing the system debt limits on the Mint and Lend protocols
Why are there new limits on Mint and Lend protocols?
As a part of a holiday upgrade on the Mint and Lend protocols, borrowing using certain assets has been limited to increase security. In addition, in the past few weeks, we conducted investigations on low-liquidity assets (HARD, SWP, USDX, AKT) and wanted to tighten security on the Mint and Lend protocols.
We want to take extra security measures to ensure users who hold low-liquidity assets don’t get affected due to manipulations that could result in liquidations. Here at Kava, security has always been the number-one priority, and we want to continue to honor this promise for the safety of users’ assets.
We recommend everyone repay their borrows on the Lend protocol 100% to be safe before the change goes into effect on the Lend protocol.
Why can't I mint USDX against my HARD and SWP on the Mint protocol?
One of the points of this new upgrade is limiting the use of those assets, HARD and SWP, on the Mint protocol. It is meant to increase the security of the platform's users by limiting the potential use of those tokens as collateral due to possible price manipulations. This upgrade won't close your open position nor auto-liquidate it. But remember that you won't be able to use these assets to mint new USDX moving forward.
You can continue making repayments on your open position as long as you wish. You may still be able to mint USDX against other collaterals; BUSD, BTCB, XRPB, and KAVA.
Why can't I borrow from HARD, AKT, and USDX on the Lend protocol?
Due to an upgrade in the Lend module, assets such as HARD, AKT, and USDX will not be borrowable or counted as collateral value for borrowing positions. The LTV for these assets will be adjusted to zero, making these uncountable towards the collateral value.
Please note that you have until December 13th to close your borrow positions against your supplied HARD, AKT, and other assets. We recommend you take urgent action to close your borrow positions, or these positions will be liquidated after the deadline passes.
Importantly, you have till January 10th, 2023, to close your borrow positions against your supplied USDX and other assets. We want to give you extra time to re-strategy your borrowing position on the Lend protocol to close your borrow position against USDX accordingly. Or these positions will be liquidated after the deadline passes as well.
Can I still supply HARD, AKT, and USDX to the Lend protocol?
You can still supply these assets or keep them supplied to the Lend protocol to earn incentives as long as you have no outstanding loan. But please be aware that these assets won’t be counted as the collateral value after the change goes into effect and will cause a liquidation if there is an active borrow open when these are supplied.
Again, it is recommended everyone repay their borrows 100% to be safe before the change goes into effect. Your borrow position should be fine if you don’t have any of these assets supplied to the Lend protocol, but it is still recommended to repay your borrow 100% to be safe. It never hurts to double-check.