What Is The Plan On Raising The Ether Debt Ceiling

Is there a system at play? Are folks watching the rate of growth and how long the ceiling will take to get hit? Is the goal no down time? Over 50% of the 150 million dai increase from just a few days ago has already been eaten. At this rate it will be just 2-3 days until the ceiling is hit. For the spice must flow.

Raise it up.

If DC is about to get hit we will probably see another urgency debt ceiling executive

We need to stop with “urgent executives”.

In any case, shouldn’t the Risk Team just find/declare a maximum DC we are comfortable accepting? This should be fixed for 1 year or so, i.e., be somewhat fundamental and coherent with a medium-term assesment.

After that, we should just avoid hitting the ceiling by increasing the SF if necessary.


I guess it is not that easy. SF might need to get adjusted depending on the DC too… But IAM is for sure a good idea on Eth A

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I’m a bit confused personally on what the rationale is for raising the DC vs. increasing the SF. It’s basically an optimization of what’s best for MKR holders right? Why is one choice better than the other depending on the circumstances? For example, once the new ceiling is reached, why raise it instead of the SF? Or is the ultimate goal to maintain the peg?

For me, the ultimate goal is the maintain the peg. I believe that MKR holders should always put Dai holders above themselves.


The risk team gave some guidance for a maximum DC of 944M for ETH-A in this post (ETH-B DC-IAM: Initial Parameters). But this was also on Dec 20 and the price of ETH was under $650.

1yr is a long time in crypto.

new signal is running: [Signal Request] Adjust ETH-A Debt Ceiling (2021-02)

So in that context, if I’m understanding correctly, the DC should always be increased when the cap is reached, except if the value of DAI below $1, at which point there is a need to make people unwind their vaults by increasing the SF, thus allowing for a reduction of the DC. Am I getting this right?

I don’t think the price should affect the risk assessment, honestly, especially in a bubble situation like the current one. Also, I don’t think any risk assessment should change by much after just 1 month…

But maybe I am wrong.