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

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