[Discussion] Reduce the USDC-A Debt ceiling

Hey all. I think we should consider reducing the debt ceiling for USDC-A since the utilization rate is so low. Currently 6 million being used out of 140 million. CRV farming has made Maker a capital inefficient use of USDC. Until the situation changes there’s no reason to take on unnecessary risk (liquidations are disabled, but there are still unknown counterparty risks that should be minimized). I think moving back to 40 million makes sense for now, although this is open for discussion.

7 Likes

I was thinking of making this signal request today but didn’t because of liquidation being off so I couldn’t think of another risk avenue. The risk of unbacked USDC minting DAI and then shuttering operation is I guess an unlikely but tangible scenario so reducing the DC to something more manageable makes sense. Thanks for pushing this forward! When would you want to put a poll up?

What should the new debt ceiling for USDC-A be?

  • No Change
  • 20 million
  • 40 million
  • 60 million

0 voters

1 Like

I Voted for no change–what if USDC, and/or U.S. regulators go after CRV/Contract?

Also, where is All the supply ($1.2B) going? CEX, or Algorand? Is that good for DeFi, or not a good look? Is Jeremy Allaire/Circle and the Coinbase folks taking it away from our ecosystem? What gives?

Its more profitable for users to just use USDC for yield farming than to lose 20% to CR for DAI.

So the entire Supply is going to yield farming? Compound only has a poultry $148M. here, $5.7M. Where is the rest of the supply? Algorand? :thinking:

Aave has $260 Million. Curve has like 400-500 Million. Plus peg is almost back to $1 so no one is arbing with USDC anymore.

Okay, so that’s close to 60%. Hmmmm wonder how the Circle/Coinbase folks feel about that… Ok maybe I should vote for $40M Ceiling… Flash Loans… Risky…