SCCP-70: Raise maxDebt on Multi-Collateral Loans to sUSD 20 million from sUSD 10 million
| Author | Kaleb |
|---|---|
| Status | Implemented |
| Type | Governance |
| Implementor | TBD |
| Release | TBD |
| Discussions-To | governance |
| Created | 2020-12-31 |
Simple Summary
Raise the maxDebt on multi-collateral and shorting loans to sUSD 20 million.
Abstract
The maxDebt parameters governs a ceiling on the total sUSD value of the loans that can be taken out by borrowers on the Multi-Collateral and Shorting contracts.
Normally setting a high rate exposes minters to extra leverage on their debt.
Motivation
The max debt currently set at sUSD 10 million, is proposed to be increased sUSD 20 million to accommodate for two things essentially:
- The increase demand for sUSD loans for farming purposes
https://mith.cash/ - The sDAO has also taken around sUSD 5 million worth of ETH and BTC shorts
The former has no effect on the debt pool, as the debt in sUSD does not result in an increase in debt volatility and the latter actually helps the skew in the debt pool without having minters needing to incentivize balancing out the debt pool skew.
The current break down of loans are as follows:
| Total Loans (Revalued to sUSD) | |
|---|---|
| ETH backed sUSD Loans | 6,523K |
| sUSD Backed sBTC Short | 957K |
| sUSD Backed sETH Short | 4,440K |
| ren Backed sBTC Loan | 15K |
| ren Backed sUSD Loan | 87K |
Copyright
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