Adjustment to Minimum Collateral Ratio (MCR) for LST Assets

TL;DR

What: The Minimum Collateral Ratio (MCR) for wstBTC and stBTC will be adjusted to 120%.
Who: Users who have deposited wstBTC or stBTC as collateral need to ensure their collateral ratio is above 150% and be aware of their liquidation price.
Why: To ensure robust risk management and accommodate new LST project collaborations.
When: This change will take effect on 7/24 at 20:00 UTC+8.

We are informing you about an important update regarding the Minimum Collateral Ratio (MCR) for Liquid Staking Token (LST) assets.

On 7/23 at 12:00 UTC+8, the MCR for wstBTC and stBTC will be adjusted to 120%. This update is essential for maintaining platform security and integrating new LST projects.

Who Should Pay Attention?

Depositors of wstBTC or stBTC as Collateral

Review and adjust your collateral ratios.

Ensure Your Collateral Ratio is Above 150%

This will help you avoid liquidation.

Be Aware of Your Liquidation Price

The new MCR may affect your liquidation price.

Why Are We Making This Adjustment?

Robust Risk Management

To manage risks associated with newer Bitcoin LST assets.

New LST Project Collaborations

To better accommodate and collaborate with emerging LST projects.

How to Take Action?

Review Your Collateral Ratios

Connect your wallet and ensure your collateral ratio meets the new requirement.

Adjust Your Collateral as Needed

If below 150%, deposit additional collateral.

Monitor Liquidation Prices

Keep an eye on your liquidation prices to manage your positions effectively.

Stay Informed

Follow our announcements for any further updates.

Conclusion

This MCR adjustment is a necessary measure to enhance the platform's security and stability. Your prompt action is required to comply with the new requirements and protect your investments.

About Satoshi Protocol

Satoshi Protocol is a revolutionary "universal" stablecoin protocol backed by Bitcoin. It allows users to deposit BTC or LST as collateral to mint the stablecoin $SAT on both Bitcoin mainnet and multiple L2s.