KIP-013 Increase Debt Ceiling to 12,000,000 kUSD

Author:
Chas Smith, community member

Created:
11/01/2021

Status:
DRAFT

Summary

Raise the debt ceiling to 12,000,000 kUSD

Motivation

Keep space in the debt ceiling for large liquidations.

Details

The debt ceiling is currently ~1.4 million kUSD from being maxed out. There are some very large ovens with over 1 million kUSD borrowed. In order for a private party to mint kUSD and liquidate those ovens, the debt ceiling surplus needs to be high enough to cover those oven amounts. For that reason, this proposal requests a debt ceiling increase to 12,000,000 kUSD.

3 Likes

If we’re in a situation where we can’t liquidate ovens that is bad for the protocol. I support this proposal.