Debt Ceiling Adjustment

Folks. I don’t know how to start a poll but perhaps we should have some discussion at least start regarding where the community wants to go on the Debt Ceilings.

Personally I am voting for 6/6/6 on the DSR/MCD-SF and SCD-SF because the PEG looks much better here than what it was when the rates were 4/4/3 vs. 4/4/5 currently winning.

But not included in the polling here is where people think we should go on the Debt Ceilings.

Personally I’m advocating a bump from $100M on the MCD/DC for ETH-A to ~$120M, and a drop of the SCD Debt Ceiling from 70M to 50M. This is purely in response to the continued nice migration moves. I’m thinking DAI debt should get closer to $100M and would leave a ~20M bit of headroom, and the SCD should continue to drop to $30M or below and 50M is a safe upper limit (one could even go for 40M and I’d be ok with that)

Feel free to discuss and later those who put up the new polls can take into account where the community thinks we need to go to on the Debt Ceilings.


Is it time to adjust the DC? I didn’t see any other thread about it. What do you think the next DC should be and when should we vote for it? I’m for the vote ASAP and I’d also like not to have to vote for the DC every month (if we are confident in the system).

My suggestion is 250M. At least we have to accomodate all SAI (150M) + room to grow @3M/day.

I would even go even higher 6.5/6.5/6.5. Why not?

I would drop SCD debt ceiling to 40 mil ( before the next vote sai number will likely drop further)

Actually if I had to pick a rate I would pick 8% on the SF 1% on the ETH RP, and 2% on BAT RP for effective DAI borrow rates of 9-10% as I think at least for now given growth of approx .5M DAI debt/day when ETH/USD prices are relatively stable we might want to perk up the PEG and slow DAI growth just a bit. Only reason I suggested 6/6/6 was because that was more likely to pass given the previous votes. SCD-SF should always be some amount higher than the MCD ETH-A rate (in my opinion anyway) to continue to encourage SCD migration. Leave the DSR at 6% for a bit just to try to get some data on SF changes alone on the PEG as well as to see if we have any control over debt growth or not… Current numbers on migration 96.7DAI/29.2SAI to give approx 125M outstanding so at this point would look again to 120M on ETH-A as we are maybe two weeks from hitting the ETH-A debt ceiling and SCD to 40M now that we are below 30M.

The above is the current state of my thoughts on direction. As to whether to just go to $150M on ETH-A to reduce need for further action into the future. I don’t have a good idea of how much the DC should be due to risk of a liquidity attack and one of the reasons I’ve been advocating implementing a rate based on debt facility utilizaiton as the markets will then target the utilization based on real competition.

If the above (with same utilization curve) suggestion was implemented I would say take the DC to about $160M and just let the system run for a while (see where the debt facility utilization lands, as well as the rate) and then see which direction to go next (probably a higher DC to lower rates if utilization is > 80%) and everything (PEG in particular) looks stable.