[Signal Request] Raise the WBTC Debt Ceiling

Hello Maker Community,

With the PayPal news and other headlines being made by Bitcoin, exposure of WBTC on Ethereum has reached $1.45B and rising, per DeFi Pulse. This is exciting for the Ethereum ecosystem and with WBTC gaining some serious traction via DeFi, we will most likely hit the debt ceiling sooner rather than later.

With that in mind, what would the community feel comfortable raising the debt ceiling to?

Should we increase the WBTC Debt Ceiling?

  • Yes
  • No
  • Abstain

0 voters

How much should the WBTC debt ceiling be increased by?

  • 40 Million (160M DC)
  • 30 Million (150M DC)
  • 20 Million (140M DC)
  • 10 Million (130M DC)
  • Abstain

0 voters

Polling will run from 2020-10-24T04:00:00Z2020-10-29T16:00:00Z

6 Likes

Possible relevant:

PayPal is exploring acquisitions of cryptocurrency companies including Bitcoin custodian BitGo

Would PayPal be a riskier custodian?

Maybe also worth mentioning that WBTC on-chain liquidity increased heavily ($353m at Uniswap alone) and WBTC also soon gets listed by Coinbase which should decrease risks associated with liquidations or unwinding of these vaults. Therefore I don’t see any increased risks having higher DC compared to situation months ago.

12 Likes

The wBTC+BitGo folks are great, but there are def concerns with Paypal and their history of aggressively freezing accounts. Increasing the debt ceiling for wBTC now def makes sense, if Paypal actually acquires BitGo though it would be prudent to reevaluate risks with wBTC when that happens.

2 Likes

This is very timely!
Given the time it takes from Signal all the way to execution of an Executive vote, I don’t think community should wait for WBTC ceiling to be hit to raise the ceiling. On that note, I’d say that even 40mm is a conservative increase. The liquidity on the market can handle 200mm with no problem. Today the WBTC market cap is 1.5b. WBTC/ETH is the most liquid pair on Uniswap and the Curve pools have significantly increased in liquidity too. Additionally, WBTC is now supported on Binance, Coinbase (retail and Pro), OKEx, Huobi and more…

3 Likes

Also plenty of liquidity in https://btc.shells.exchange/

2 Likes

The Paypal news was big for all of crypto especially BTC and Bitcoin appears to be heading into a Bull market and will more than likely be pumping. So with this in mind I say yes for the raise and call for the maximum offered 40M.

1 Like

The governance poll to Adjust the WBTC-A DC from 120 million DAI to 160 million DAI passed last week with 53k MKR in support.

Yes - 53,133.46 MKR
No - 9.41 MKR

Voting Stats:

Total Votes

53,142.86 MKR

Unique Voters

25

The bundled executive was passed on Nov 8, 22:19 UTC, available for execution on Nov 11, 22:19 UTC.

4 Likes

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