Lowering the Sai debt ceiling

Currently the Sai supply sits at 26.5 million, with a debt ceiling of 45 million. Given the current uncertainties surrounding the tax parameter and its implications on emergency shutdown, I think it would be a good idea to keep a tighter spread between the Sai supply and its debt ceiling. Until we can fully understand the ramifications of the unpaid stability fees, the ~20 million of unused cap space is likely too much and opens up the community to unnecessary risk.

The Interim Risk Team is proposing a reduction of the Sai debt ceiling to 30 million, with a plan for further adjustments to be roughly 5 million above the current Sai supply. If for any reason the Sai supply begins to grow again, the community can vote to increase the debt ceiling.

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Hi @cyrus,

Looking forward to vote on this.

Adjustment to 30 could be short a little in the context of a new potential investor or a fast grow of some new shareholders. That would lead to a new premature vote but this is still safe i think. Giving a total of 3.5 millions in difference is fine i guess.

Maybe a vote with 30 and 35 and will see the results ?

Yeah, great point. I’m less concerned with the specific amount and more concerned with that it gets reduced closer to the actual Sai supply. I don’t think we’ve seen any sudden increases in the Sai supply recently, so I’m inclined to think this is safe, especially if the Sai supply keeps trending downward. Otherwise, there will have to be a poll to increase soon.

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Yep, seems good. We need this lower so we can start/continue the discussion and polling around the tax parameter.

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I’ll include it in the polls for Monday.

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@cyrus To be clear, are you proposing to have tomorrows poll include the plan to maintain no more than a 5mil buffer in the future as well?

I.e. Each week until shutdown there will be another Debt Ceiling reduction poll if there the cap is greater than 5 million above supply AND the current Sai Debt Ceiling should be 30?

Or are you saying it’s just the current thinking and the community and Risk will revisit the plan?

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Completely agree with this.

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Current thinking. I’d prefer to take this week by week and remain nimble as a community.

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Happy to see this executive pass. SAI is down to 24 million. I hope MKR holders aggressively increase the SAI SF as well.

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