The USDC PSM has seen accelerating outflows as growth in demand for Maker vaults has begun to outstrip growth in demand for DAI. This is exactly what the PSM is designed for, but these arbitrage facilities work best when freely flowing in both directions.
This poll is to gauge sentiment for reducing the “tin” (or toll for inflows) of the USDC PSM to 10 bps. It is currently set to 20 bps.
The USDC PSM tin was raised to 20 bps upon the introduction of the USDP PSM in an attempt to migrate some dollar-proxy reserves from the USDC PSM to the newly established USDP PSM. The USDP PSM is now nearly full, and accounts for close to half of all circulating USDP supply.
Because of the lack of capacity in the USDP PSM, it is time to equalize the tin fee for all (at the moment two) PSMs. The goal for raising the tin to 20 bps has been met, and there is no reason to favor inflows to a PSM that is nearly at capacity.
Additionally, since the introduction of a 20 bps tin for the USDC PSM, inflows to that PSM have generally halted. While credit risk from exposure to USDC is still as real as it has ever been, Maker does depend upon the PSMs to provide peg stability for DAI, and less friction is probably better – even while we wait upon more PSMs or opportunities to diversify our USDC reserves beyond simple PSM smart contracts. Exposure to USDC has dropped in both absolute and relative terms, which is good, but Maker still needs this arbitrage facility to be widely utilized and fairly frictionless to support a tighter real-time peg for DAI <> USD.
This poll will run for 7 days. Upon an affirmative vote (yes votes > no votes), an on-chain poll will be presented to the community.