If we don’t get any of the Smart Contracts Mandated Actors to be able to comment on the severity of smart contract risks of the new PSM implementation before deployment, I personally don’t feel comfortable starting with 500m DC from day one. We want to be close to 100% sure this is safe from technical standpoint. Otherwise I would prefer to start with a Debt Ceiling of 3m for PSM-USDC-A and if everything runs smoothly, governance can increase the Debt Ceiling at the next possible executive vote. The level of 3m would be proposed because the surplus buffer can still protect Maker against any potential losses.
The financial risks are high here, but I can evaluate them only in relation to SC risks where I can only rely on external opinion. @hexonaut thoughts?