Reserve Factor was changed several times to mitigate market risks; it is time to adjust them to the current market.

What is Reserve Factor?

The Reserve Factor is a percentage of the borrowers paid interest which can be used by the governance or act as an insurance against borrower default which protects all the suppliers.

Increased Reserve Factor

• USDC 5% to 7.5%
• DAI 5% to 15%
• ETH 10% to 20%
• WBTC 10% to 20%
• UNI 20% to 25%
• COMP 20% to 25%

Decreased Reserve Factor

• USDT 20% to 7.5%
• BAT 50% to 25%
• ZRX 50% to 25%

This proposal includes a community member Autonomous Proposal that explains the DAI market risk.

Reference Links

Reserve Factor Standardization

Dai Market Risk

Increase DAI Reserve Factor from 5% to 15%