[Signal Request] Adjust ETH-A Debt Ceiling (2021-01)

Governance Signal Requests
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#1

Overview

ETH-A is currently at ~88% utilization. There has been a steady increase in the last months.

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This poll is about changing the DC to allow more DAI from ETH-A. There is a similar poll for the ETH-B collateral type as well - but that one has a higher stability fee and a lower liquidation ratio.

Pros:

  • more fees collected
  • more DAI in circulation

Cons:

  • I personally do not see any, as ETH is still the most liquid and robust asset-type we have in the portfolio, but I am happy to adjust here if people raise good points in the discussion

Ceiling adjustment

  • 740 MM (+ 150 MM)
  • 690 MM (+ 100 MM)
  • 640 MM (+ 50 MM)
  • 590 MM (no change)
  • Abstain

0 voters

Next Steps

Last time we raised the ETH-A Debt Ceiling the @Risk team proposed a increase on their own but were influenced by the corresponding community poll - this is the corresponding community poll :wink:

The poll will run until January 14th; its outcome will either result in a on-chain-poll assuming the outcome of the poll deems it necessary or there will be a corresponding on-chain-poll taking the (intermediate) result and the proposal by the risk team (maybe the SF needs to get adjusted?) into account. I guess raising the ETH-A-DC might be a topic for the first governance call of this year already?

6 Likes
[Urgent Executive] ETH-A, USDC-A and PSM-USDC-A DC increase
#2

I really would like to see the IAM in action for ETH-A too, but I donā€™t know how the plan is about adding it to ETH-A.

2 Likes
#3

I believe we ā€œjust needā€ to find a fix/ workaround to the issue highlighted by the risk team.

#4

Thanks for this post! I voted for 740m (+150m).

However this number seems a bit arbitrary, out of ā€œgut feelingā€.

Even if I know that this was discussed some other times, I wonder if the time is now mature to start thinking & implement a DC/SF automatic adjustment system.

For example we could weight in some factors such as:

  1. price of ETH
  2. averaged growth/loss in price of the last 3 months
  3. % of ETH collected in ETH-A vaults (currently ~2.3%)
  4. Current utilisation of the DC (currently 523/590, i.e., ~88%)
  5. ā€¦

and spit spit out (read: onchain algorithm Alg) SF and DC parameters.

Of course the algorithm Alg can be updated whenever we want via governance.

But it would, imo, provide a more ā€˜scientificā€™ approach to SF/DC scaling, and possibly an easier to handle one, compared to all the time voting more-or-less arbitrary numbers.

Remark: this is in no way urgent and possibly not even necessary. Itā€™ just something that I think should emerge sooner or later because it makes sense.

2 Likes
#5

I argue that the current non-automated, human-managed debt ceiling is similarly vulnerable to attack. Hence, I encourage switching to the IAM because it doesnā€™t seem worse than what we already have.

5 Likes
#6

@Joshua_Pritikin thanks!!!

I had missed the majority of the discussion around the IAM, itā€™s hard to be on top of everything happening here, isnā€™t it!? :clap:

Itā€™s great that the building block is already in place.

#7

in the meantime utilization is at 95% (only 37MM headroom). in parallel USDC-A-DC has been hit again, everything looks a bit more urgent now

#8

We should adopt IAM as it is better.

4 Likes
#9

ETH-A DC filled up. Do we have to wait till Friday for an executive vote to raise the DC? It sucks seeing the limit hit and no more DAI can be minted

#10

an emergency exec is being prepared soonā„¢

6 Likes
#13

here it is, the urgency executive (this is not an emergency as outlined in MIP24): [Urgent Executive] ETH-A, USDC-A and PSM-USDC-A DC increase

2 Likes
#14

thanks everybody for participating in this signal request. your participation helped on making a decision on the urgency executive. we will have more DAI tomorrow :slight_smile:

4 Likes
#15

Is there another poll/executive vote to increase the DC for ETH-A? The utilization is at 90% now.

Looking at the overall market it looks bullish, can we increase more than 150M at a time? It seems like the DC is being consumed at a very fast rate.

How about ETH-B DC? Any plan to increase? It has been maxed out for a while

#16

Personally, I think we should concentrate on ETH-A DC increases. (Instead of ETH-B too) Thereā€™s demand for ETH-A, and this will manage the risk exposure better.

2 Likes
#17

As the price of ETH increases, we should focus on ETH-A and increase SF every time DC is raised. Regarding ETH-B, I think the DC should be added after the deployment of Clearing 2.0.

1 Like
#18

I think we should substantially raise ETH-A debt ceiling and probably also the stability buffer. This bull market has room to run so we should strike while the iron is hot.

1 Like
#19

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