[Discussion] Executive Vote to Raise ETH-A, USDC-A, USDC-B, W-BTC, BAT debt ceilings

In today’s Emergency Peg Management Governance call the community discussed plans to significantly increase debt ceilings for ETH-A, USDC-A, USDC-B, W-BTC, and BAT. The proposed changes are as follows and have been placed into the voting portal for an Executive Vote.

  • ETH-A debt ceiling to be increased from 260 to 340 million.
  • USDC-A debt ceiling to be increased from 80 to 140 million.
  • USDC-B debt ceiling to be increased from 10 to 30 million.
  • W-BTC debt ceiling to be increased from 20 to 40 million.
  • BAT debt ceiling to be increased from 3 to 5 million.

Additionally, there was a discussion to continue to go straight to executive votes for further increases should the above amounts prove to be insufficient.

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This is not governance, it’s 2 people making decisions and offering MKR holders as “take it or leave it”. There was no consensus about unlimited centralized collateral which can now be up to 45% of all collateral.

All of the above would make some sense if it helped the peg, but it didn’t ($1.028).

IMO this is the type of action which is needed in the current market circumstances. Increasing the ETH-A debt ceiling could have slight effects to restore the peg right now, but increasing USDC-A debt ceiling and W-BTC debt ceiling could have some more immediate results (Bitcoin holders want to have a slice of DEFI, and W-BTC brings that, USDC-A permits to do 10x leverage right now, if we see those Vaults growing too fast, that would be a very likely reason, and it will have immediate effects in DAI price). Increasing ETH-A debt ceiling gives less immediate result, but it will help (and it is needed) for the next weeks (probably)

I’m not sure @bit if there were 2 people only in the meeting, as far as I know, there was a notification here in the forum for anyone who wanted to participate to be able to (or wasn’t it for every one?). And the decisions taken and the current executive action aligns a lot with what I consider the best we could do to restore the peg this week (and not having to wait 1 month to take the decision on some complex schema while the DAI value grows higher and higher).

My vote for this executive vote is YES.

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Mkr holders still have to vote this into effect one way or another. There were quite a few people in the meeting also, much more than 2, but I understand the point you’re making.That said anyone was welcome to join the meeting.

The reason this swift action was taken is because the price of dai broke through 1.035 today, after being fairly close to peg just a few days ago. We are trying to prevent emergency shutdown rn as the current demand situation becomes more difficult to deal with every day. No one wants a large percent of dai supply collateralized by usdc over the long term, but increasingly it is seeming like this is necessary in the short term.

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Much more reason to raise those ceiling:

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Added tags.

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