System Update

1. PIZZA interface upgraded to v.2.0

The upgrade includes changes in background color of the site and some interactive details. Several new modules are expected to be added to the interface in the upcoming fourth quarter.

2. Parameter adjustment

Actual liquidation fee: reduced from “8% of liquidated collateral” to “5% of USDE debt”.

Minimum initial collateralization ratio: down from “175%” to “150%”.

Liquidation collateralization ratio: down from “150%” to “135%”.

The adjustment is based on the change in the confidence interval. The original parameter is described as, “the chance that the value of excess collateral will fall below the value of the debt within 24 hours is less than 2%.”

The description is changed to, “the chance that the value of excess collateral will fall below the value of the debt within 24 hours is less than 5%.”

Among them, the system added “volatility clustering adjustment parameter” and “basic liquidation fee”.

volatility clustering adjustment parameter + basic liquidation fee = liquidation fee

In the new version, the basic liquidation fee = 2% (of USDE debt), and the volatility clustering adjustment parameter = 3%.

In the future, the system will make appropriate changes to the volatility clustering adjustment parameter as the market conditions change (and therefore adjusts the actual liquidation fee).

In the future, the system will make appropriate changes to the volatility clustering adjustment parameter as the market conditions change (and therefore adjusts the actual liquidation fee).