- Raise the Global Debt Ceiling by 500million DAI
The global debt ceiling correctly includes all ILK debt ceilings to determine its upper bound. This is problematic because:
- Stablecoin debt ceilings have been set to zero
- The debt ceilings on these stablecoins were already exceeded - in particular the USDC-A debt ceiling, which is also set to 0, but has 240m in debt.
- The quantity of DAI exceeding the independent ILK stablecoin debt ceilings meant that the global debt ceiling had reached its ceiling.
Therefore, due to the global debt ceiling having been reached, there was a concern earlier this week that we may see upward pressure on the peg as vault holders would have been prevented from minting more DAI.
This concern was temporarily alleviated when the previous executive increased the PSM by 1 billion, thereby indirectly increasing the global debt ceiling and giving us the ability to again mint DAI.
As an immediate fix to this problem, the Protocol Engineering Core Unit recommends:
- Raising the global debt ceiling by 500 million DAI.
In due course the team will update the way the global line is calculated so it is not influenced by collateral types that have had their debt ceilings reduced.