During the recent market crash this week, I was unable to repay my loan because the system was overloaded and it took almost an hour and over 20 attempts until the repayment went through.
During this time my loan was above the LTV value and could have been liquidated. Since I had the money on hand to repay the loan and the only reason for liquidation would have been the system’s instability, it would clearly have been unfair if my loan was liquidated and this issue is now preventing me from increasing my loan again despite the recent jump in Luna’s price.
To address this, I would like to propose at least a four hour window when a loan goes over the LTV ratio before it can be liquidated so that the loan holder has time to repay the loan. This is necessary until the system is proven to handle peak load without the unacceptable delays seen on Tuesday.
A major benefit of this is that it will allow people to increase their loan size without the threat of liquidation purely because of system infrastructure issues which Project Dawn will eventually address.