[Urgent Executive] PSM-USDC-A & USDC-A DC Changes, 1st March 2021

Hey all,

It seems that last week’s deleveraging of vaults pulled a decent amount of DAI liquidity from most liquid venues (Curve 3pool DAI deposits fell from 230m to 140m DAI). Consequently minting from PSM-USDC-A increased and hit the current DC limit of 243m. Additionally, minting from USDC-A increased yesterday by more than 60m, possibly related to various new DAI yield farming opportunities and general DAI price shorting after breaching $1.001.

There is a signal still pending to increase PSM-USDC-A to 500m or more, but we believe an urgent action would be more appropriate currently. I already commented in the signal request why 1bn PSM-USDC-A DC is preferred. Based on the current situation we suggest moving ahead sooner than on Friday, especially if we have another price dump in ETH this week.

We also suggest turning USDC-A DC to 0 since it is preferred to have DAI minting on USDC enabled exclusively via PSM where fee collection is instant and unwinding of USDC collateral easier.

Therefore an urgent executive is proposed to increase PSM-USDC-A DC to 1bn instantly and set USDC-A DC to 0.

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You’re right–DAI has been by far the most popular stablecoin of choice for yield farming–just like this one

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This executive is now live. Please consider voting!

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This executive has now passed. Thank you to all who voted. Let’s hope we don’t need another 1 billion stablecoins in the near future.

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