Vault type USDC-A debt ceiling has only 4m DAI buffer left due to some increased minting from arbitrageurs in the last few days (about 20m increase since Monday). DAI is also trending higher and currently stands at $1.03. Fortunately we have USDT and PAX Vault available and ideally we would like to see some diversification from USDC into other stablecoins. However those two Vault types are not efficient in terms of capital use (higher liquidation ratio for both) and we are still testing how appealing they are for arbitrageurs as they just got launched. There is also an additional buffer available in USDC-B Vault, but this type of vault is primarily better suited for auctions due to high SF.
Also, if we are afraid DAI/USDC arbitrageurs won’t be available to mint any more DAI from USDC and peg might be affected negatively, there is still a lot of DAI liquidity on Compound and arbitrageurs could still borrow there. But obviously we want arbitrageurs to use Maker and we know Maker is more popular because it has liquidations turned off and USDC price is fixed.
So by being more conservative I think we should be increasing USDC-A debt ceiling very soon, the question is by how much. If the outcome of this vote is to increase it, the vote will go straight into executive this Friday.
- Increase USDC-A Debt Ceiling by 20m DAI
- Increase USDC-A Debt Ceiling by 40m DAI
- Increase USDC-A Debt Ceiling by 60m DAI
- Keep USDC-A Debt ceiling at 40m DAI
This poll closes in 24 hours.