Summary
Remove the stability fee and increase borrowing capacity for haiVELO v2 and haiAERO, recognizing their strategic voting-power contribution while explicitly accepting greater credit exposure.
Specification
- haiVELO v2 (
HAIVELOV2): annualized stability fee 5% to 0%; safety ratio 200% to 160%; liquidation ratio 190% to 150%.
- haiAERO (
HAIAERO): annualized stability fee 5% to 0%; safety ratio 190% to 160%; liquidation ratio 180% to 150%.
KITE rewards, debt ceilings, liquidation penalties and auction parameters are unchanged by this proposal.
Rationale and risk
At unchanged oracle and HAI redemption prices, the proposed safety ratios increase maximum borrowing capacity per unit of collateral by 25% for haiVELO v2 and 18.75% for haiAERO. The capacity to buy a wrapper and borrow against it can support demand even with limited secondary-market liquidity, but is not a guaranteed price floor.
A position opened at exactly 160% has only a 6.25% collateral-price buffer to the 150% liquidation threshold, assuming unchanged debt and redemption price. Refinancing-only bids at the maximum new borrowing capacity would recover 93.75% of old principal in the ideal threshold-liquidation case, before costs or further price declines. This is a conditional stress scenario, not an expected loss estimate. Buyers may contribute external capital based on future income.
Execution
For each wrapper, set the collateral stability-fee factor to 1.0 RAY and call taxSingle to settle elapsed fees and activate the new rate. Lower the liquidation ratio before lowering the safety ratio, then call updateCollateralPrice to refresh the prices used by SAFEEngine. Preserve this action order.
Voting
FOR: approve both wrappers' specified borrowing terms. AGAINST: retain existing terms. ABSTAIN: no preference.
Resubmission
This proposal resubmits the policy in the previous proposal, which did not reach quorum: https://www.tally.xyz/gov/hai/proposal/68206149791787490911809670111401349890990937689569858965149938541253890709564. The economic targets are unchanged.
