The ‘dust’ parameter is the minimum possible debt of a Vault. It is currently set to 20 DAI for all collateral types. This issue was brought up in the rocketchat by @cmooney.
Recently the price of gas on Ethereum has been going up. It’s no longer cost effective to liquidate dusty vaults due to the gas costs of the auction process. We also need to consider that gas costs could increase sharply during a liquidation event. There’s also the gas cost of cycling capital, and which can also be quite high compared to the profitability of a dust vault liquidation.
Another thing to note, is that opening a vault costs a lot of gas anyways. It’s not cost effective for users to make small vaults as well. (It can cost more than 550k gas to open a vault. That’s $9 at 50 gwei.)
Considering these gas costs of these actions, the dust amount should probably be raised to 100 DAI or higher to ensure ‘dust’ vaults are cost effective to liquidate.
Auction costs: Used $320 Ethereum
|Gas Used||Gwei: 100||150||200||250|
Increasing the ‘dust’ amount
- 20 DAI
- 50 DAI
- 100 DAI
- 150 DAI
- 200 DAI
- 250 DAI
Polls will run for ~1 week from July 29 to Aug 5. Please leave any thoughts, comments, or analysis below!