[Signal Request / Forum Poll] Raise the ETH-A Debt ceiling

Hey all. the thew Yearn yETH yVault is starting to see some serious traction and we will most likely hit the debt ceiling sooner rather than later. It is likely this brings in a lot of Dai supply. What would the community feel comfortable raising the debt ceiling to? If need be, this may go to an expedited executive vote.

How much should the ETH-A debt ceiling be increased by?

  • No Change
  • 40 million
  • 60 million
  • 80 million
  • 100 million
  • 120 million

0 voters

2 Likes

I think 120 million will get eaten up pretty quickly, but is probably an appropriate increase and give us enough time to monitor. Though, we may very well be pushing for another increase early next week.

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To expand slightly on timeline, we’re preparing to do this today given the popularity of the yETH vault so far. It seems likely that an increase will go ahead today unless the ETH-A usage drops.

Has there been any thought to also increasing the SF with this vote?

We have the weekly poll, currently -2% base rate is leading, which is a decent increase for non-ETH collateral types. I think we could wait to see if the peg dives with significant yETH use. It might be a morale booster to see 0.99 print :smiley:

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I really don’t think setting the ETH SF at 0.5% or 1% will stop these yVault users from joining yETH. The peg already seems to be trending down. I really think it is a mistake to continue to be reactive rather than proactive in making revenue in the system while we can take advantage of these insane APY rates people are using us to earn.

3 Likes

Oh, I completely agree with you. It’s just that for this particular week we already have an active poll for a SF increase, so I imagine an executive overriding that would be somewhat controversial. Also, the SF increase isn’t as time sensitive as the DC increase, since that is ~30 million DAI away, and I think Curve should be able to absorb ~200 million DAI before the peg dips. And that might very well happen soon, but we could package a SF increase with another DC increase if needed

You may have already read, but @Primoz wrote a little about this recently: Different Approach to Rate Setting

I’d suggest adding your thoughts there.

2 Likes

5 million DAI minted in the past 5 hours, so ~32 hours until ceiling is hit and we need 12 hours for the delay… and we still have to round up MKR holders from their farms to vote

Just to confirm, there will be an executive spell today with an ETH-A raise of 120 million.

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