YFI-A vault type debt ceiling is maxed out and the community needs to decide what to do next. I noted here that we already need to increase fees from the current 4% to at least 7% according to risk premium calculations based on our model. If we were to increase DC for another 10m or more, fees might need to be slowly increased into double digit territory. Although we estimated maximum DC to be 46m DAI, the current structure of vaults is seen as very risky as there is one vault with 11.5m DAI debt that has only 204% collateralization (14% price drop and it gets liquidated). However this vault seems to be quite sophisticated and avoided liquidations a few times last week.
In the last Signal YFI-A DC increase to 30m has won. There are few possibilities how to move ahead so I am going to list them here.
- Increase DC to 30m, but also increase SF to 10%.
- Create YFI-B with a LR of 225%. Such vault type could have another 20m DC applied with a SF closer to what it is now (4%).
- Whitelisted vaults? We haven’t heard from the SC team if this is doable in a short term and also what it implies for Maker offering such products.
- Leave DC at 20m and increase SF to 7%. Some might feel the whole situation is too risky to additionally increase DC.
Note that despite the outcome here I am going to propose to increase YFI-A SF to 7% when we have a Rates Group meeting next week.
Which step should we take forward regarding YFI vaults?
- Increase DC to 30m and SF to 10%
- Create YFI-B with 225% LR / 20m DC / 4% SF
- Whitelisted vaults when available
- Leave DC at 20m and increase SF to 7%
- Other - Comment below
Poll will remain open until this Friday December 4th and the winner will proceed to on-chain poll next week (including proposed SF increase to 7% for YFI-A if options 2 or 3 win)