[Signal Request] ETH-A Stability Fee and Debt Ceiling adjustments

Hey all, based on Thursday’s governance call, we are putting up a signal request for adjustments to the ETH-A parameters in response to potential market impact due to the COMP distribution change.

This is an emergency governance action that is taking place outside of the usual governance processes. Due to the limited time for action, this will not have an on-chain governance poll. This forum poll will be up for 24 hours and then an executive vote may be held tomorrow.

Which of the following do you support as policy actions for governance?

  • No changes
  • Increase Risk Premium, No Change to Debt Ceiling
  • Increase Debt Ceiling, No Change to Risk Premium
  • Increase both Risk Premium and Debt Ceiling

0 voters

What should the Risk Premium be for ETH-A?

  • No change
  • 1%
  • 2%
  • 3%
  • 4%
  • 5%

0 voters

What should the Debt Ceiling be for ETH-A?

  • No change
  • 150 million
  • 160 million
  • 170 million
  • 180 million
  • 190 million

0 voters


A high proportion of single assets will bring risks, not to mention the inherent volatility risk of ETH tokens, don’t forget 3.12.
Increasing the risk premium of ETH is obviously correct.

@hongbiao_li I think MKR holders prefer ETH colateral over USDC, WBTC collateral.

Now isn’t exactly the time to be raising rates on DAI from ETH which makes up 79% of the DAI supply currently. (With DAI being above the peg).

If you think rates should go up, there’s always the base rate poll which will get pushed to executive on friday.

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What about not touching ETH-A at all and instead add ETH-B with a DC of 20-30M and a RP of >0?

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It’s the limited time action because someone waited for the last moment to raise the issue. Why don’t we have the “What should the Debt Ceiling be for ETH-A?” onchain poll every week along with the base rate and risk premium polls? ETH-A is responsible for creating 78% of DAI and it should be treated differently from other collateral types like BAT regarding the DC.

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An executive vote containing the winning parameter change (Debt Ceiling only, 140M to 160M) is now live on the governance portal.

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