Signal Request: What should the next ETH debt ceiling be?

The ETH debt ceiling utilization is 94.1% and it might be 100% in a few days, so it is time to choose a new DC. As far as I know, the policy that most people agreed on is from September 2019 from @Cyrus:

“In short, moving the debt ceiling up in 10 million increments leaving a buffer of 10-20 million is the safe approach IMO.”

I think this policy should be either confirmed or modified to reflect the current supply, circumstances (MCD) and to be consistent with the recent decisions of increasing the DC.

Regardless of the policy, I want to hear your opinion on what the next ETH debt ceiling should be:

  • 150M
  • 175M
  • 200M
  • 250M
  • more than 250M
  • Abstain (I disagree with the poll options)
  • Abstain (I think @Cyrus or the risk team should decide)
  • Abstain (I think MKR holders should decide)
  • Abstain (I don’t understand the risks)
  • Abstain (Just show me the results)

0 voters

I am doing this signal request for the first time - next time it will be better based on your suggestions :slight_smile:

3 Likes

I voted for cyrus, since i find it pragmatic solution. Still, with every raise, MCD is less multicollateral.
@cyrus Can we expect any ceiling recommendation for eth in the near future?

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Thanks for setting this up Bit, it should be interesting to see everyone’s opinions on how aggressive to be with raising the ceiling.

So, since you mentioned suggestions, I have two:

  • It would be good to have summaries of the pros and cons to small and large raises as part of the pre-amble to this poll. It is important that we make decisions based on an understanding of the risks, rather than by popular demand.
  • In the future, consider making signal polls multiple choice. This has a number of advantages, but mainly it allows people to express support for all acceptable choices, rather than only their favourite choices. This makes it easier to find a consensus option than if everyone can only vote for their favourite choice.

As an example for the second point, I would have liked to vote for both 150M, and also express confidence in the Interim Risk Team to make this decision.

EDIT: I thought of a third point.

  • I feel like it’s good practice to set expectations for how these polls are going to proceed. You’ll notice in some of the other polls, the authors have said something along the lines of: ‘This will be reviewed/closed on date X.’ I feel like this is useful, and should be done more generally for all signals.
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I was going to vote “differ to Cyrus and CO”, but I do think expecting the risk teams to determine every number isn’t viable long term. We can use the logic and information they provide us to come up with a number.

So my opinion is 150 mil based on what I perceived from Cyrus about keeping a tightish roof. I considered a 175 ceiling, but were currently at 121 mil, a 50 mil gap would be pretty big (41% of current dai supply).

3 Likes

Yeah I felt very similarly, multiple choice is nice.

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I fully understand the rise of ceilings shell make dai more “depending” on ether. Why not lower other token stable fee to provide invective over ether?

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@bit are you planning to update this signal any further? Completely fine either way, but it would be good to get closure one way or another.

The usual practice with signalling threads is to indicate a timeline as to what the ‘next move’ is. However, as this poll stands, I don’t think there is any clear consensus for any particular change here. If you are amenable or if you don’t respond in the next few days, I will close this signal thread.

I think the current DC policy (if there is one) is problematic - not only for me but for other users as well (i.e. @Tarpmaster). Some people stated that they didn’t vote for the last executive because of the lower DC.

I will try to open another signal about the DC which should point how we should proceed with the DC changes in the future.

You can close this signal.

1 Like

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