The current collateral requirements are 20% LTV (loan to value) to earn rewards and 25% LTV maximum borrow.
I’d like to propose we lower collateral requirements to 35% LTV. This is the same recommended LTV as Anchor Protocol.
Increasing capital efficiency (how much a user can borrow given a certain amount of collateral) makes Balanced both more attractive to borrowers and increases origination fees. Given the recent market drop, this should also spur more originations of bnUSD in the short term.
Removing the rewards threshold is somewhat of a different topic but felt it would be better to discuss here since they are related from a technical perspective. Removing the rewards threshold is in preparation for the ability to give block-by-block rewards.
In order for us to support block-by-block reward payouts (an enhancement we have been researching along with some community members) we must remove this additional logic. All borrowers must be eligible to receive rewards in order to add this functionality.