We exceed the DAI we can produce

According to the DAIstats.com portal, we have just exceeded the current maximum threshold of DAI that we can produce as a protocol.

What does this mean for those of you in the know, and how does it affect the protocol?

The executive to raise the debt ceiling has been passed. It will be available to execute on Jun 2.

Just to add, I believe the reason for this slightly strange situation is because we have many stablecoin vaults whose debt ceilings are zero but still have collateral in them and DAI drawn from them. In this sense, they are overutilized and this is a relic of the pre-PSM days.

This hitting of the global debt ceiling will continue to occur whenever the USDC PSM gets close to its debt ceiling so it might be worth discussing here anyway to see what we can do about it.

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Maybe someone more savvy can give you a better explanation, but as I understand it:

  • The number on the left is the outstanding Dai (includes the Surplus Buffer)
  • The number on the right is the Global Debt Ceiling

Example

  • We set the Debt Ceiling to 100
  • You mint 100 against some ETH.

Now the numbers shown are 100 / 100

Later that year…

  • Time passes, so the stability fees start accruing in the Surplus Buffer.
  • We have not raised the debt ceiling (this is unusual and it hurts the business, hence the explanation of @AstronautThis ) but it helps my example.

The numbers shown now are 105 / 100.

Hope that helps.

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Thank you very much for your answer, it allows me to see a wider picture.

And also for yours @AstronautThis, you are both great guys!

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