Systemic Risk Directory

We’ve had a couple of good threads discussing what the authors feel are systemic risks to the Dai Credit System. In addition there have been a few more risks discussed off-forum or on the now deprecated mkrgov subreddit.

This topic is meant to collate these risks and to provide a place for the community to signal its informed opinion of the severity of these risks so that the community can consider the wisdom of possible fixes or mitigations. Note the emphasis on informed, please do take part, but take the time to inform yourself on what you’re voting on first.


The scale used is open to debate, but I suggest a 1-10 scale where:
1 = I am happy to live with this risk forever.
10 = I believe we will have to Emergency Shutdown due to this risk in the near future.


Flat-rate increases across multiple loan types due to exogenous reasons has unequal impact on the market competitiveness of collateral-packages. Detailed here.

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Under the proposed system and policy, there is no adequate tool for combating high demand for a specific collateral package without effecting the rest of the system. Detailed here.

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Scaling through additional collateral types will not come quickly enough to prevent organic Dai demand from overtaking Dai supply which could result in the Dai peg breaking. Detailed here.

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I would encourage anyone that has identified possible risks in the system to write them up in a forum post. Once they have been discussed, they should be added here for signalling and visibility.

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