In the Rates Group Meeting for the February Proposal it became already clear that the SF increase for ETH-A and ETH-B will probably not help on slowing down on the appetite.
Around 400MM of DAI has been minted from ETH-A alone, the increase of SF has not slowed down the minting rate.
Additionally something else changed: Two weeks ago 15% (or 132MM of DAI-from-ETH-A) were coming from vaults with a CR of <225%. Today it is 38% (or 500MM of DAI-from-ETH-A). This recent worsening of CR distribution considerably increased the risk profile of ETH-A according to @Risk.
The Rates Group will tackle the situation in more detail in the next meeting, but as immediate action @Risk will run an onchain-poll about increasing the SF for ETH-based vaults starting next Monday:
- increase the SF for ETH-A by 1% from 4.5% to 5.5%
- increase the SF for ETH-B by 1.5% from 7.5% to 9%
We will have ETH-C soon so we have another option for vault-owners who want to stay heavily overcollateralized - but the risk has been heavily changed in the last weeks so we are forced to mitigate it.