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Params de-listing documentation
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grod220 committed Jun 29, 2023
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Expand Up @@ -14,3 +14,21 @@ This contract holds the following values for all the assets in Mars Protocol:

Note: Credit Manager Vaults only utilize max loan to value, liquidation threshold, and deposit cap parameters, while Red Bank Markets utilize all of the above parameters.

## High Levered Strategies (HLS)

An HLS is a position where the borrowed asset is highly correlated to the collateral asset (e.g. atom debt -> stAtom collateral).
This has a low risk of liquidation. For this reason, Credit Manager grants higher MaxLTV & LiqThreshold parameters,
granting higher leverage. An asset's HLS parameters are stored in this contract and are applied to credit accounts
of the HLS type during a health check.

### De-listing an HLS asset

There are a few scenarios depending on what denom is being de-listed. Always communicate each step to the users!
- **De-listing a collateral denom**:
- Set the MaxLTV of the denom to zero.
- Gradually reduce the HLS Liquidation Threshold to zero.
- _Do not_ set HLS parameters to None or remove it from correlations list for debt denom. This would result in freezing the HLS accounts that have that collateral.
- **De-listing a debt denom**:
- Set the MaxLTV of all denoms in the debt denom's correlations list to zero.
- Gradually reduce the HLS Liquidation Threshold to zero.
- _Do not_ set HLS parameters to None. This would result in freezing the HLS accounts that have that debt denom.

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