PIZZA-USDE System Updates

PIZZA-USDE System will be updated recently:

Lowering liquidation penalty from 10% of default collateral to 8%; raising liquidator bonus from 2% of default collateral to 4% ( making initial bid profit raised from 3% to 6%).

Reason: 3% initial bid profit failed to incentive enough users to participate as liquidators in a timely manner.

Adding an extra segment to the Collateralization Reward Mechanism.

Current setup: reward ratio = EOS amount / total EOS amount

Updated setup: reward ratio = W1 * EOS amount / total EOS amount + W2 * USDE amount / total USDE amount W1 and W2 are weighted ratios for EOS and USDE in the formula above.

It would be convenient to consider the W1 in the previous setup is 100% and W2 is 0; however, in the updated version, W1 = 0, W2 = 100%.

Reason: it’s necessary for the system to help users to be more comfortable when seriously deciding their collateralization ratios. As users have been well educated on the basic ideas of the collateralization process and the reward mechanism, the current system is ready to encounter potential higher volatility.

Other rules in the reward mechanism are not changed.

Upgrade date: 8:00 am, June 19 UTC

Website: https://pizza.live/

E-mail: team@pizza.live

Telegram: https://t.me/PizzaUSDE

Twitter: https://twitter.com/usdeos

Medium: https://medium.com/@PIZZA.USDE