Debt available to heal (Dai)

Question where is this sum from and what will happened to the excess buffer.
Since it indicates the min buffer is 50k

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Hello @myh

debt available to heal comes from either liquidations running so bad that the protocol is taking a loss or when some DAI is distributed by an executive vote. The current debt comes from the this exec founding the core units RWF, GovAlpha and Risk.

what happenes next? as soon as someone is calling heal the amount is deducted from the system surplus. This will happen as soon as the next flap auction is triggered (~a week from now)

hth,
tim

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I did not know this, thank you very much!

This is just bad debt incurred by the system. However, the existence of such debt does not necessarily mean that liquidations performed badly and the system lost this amount of money. It can also mean that liquidations were triggered (bad debt is recorded) but not yet completed (bad debt is wiped). I suspect that’s what is happening here as markets have been quite volatile.

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