Author

desnake

Summary

Existing proposal asks DAO approval to raise max debt limit of Tier 1 CM. Due to technical restrictions, max amount of tokens that can be used as collateral per 1 CA have to be lowered. wstETH pool and rstETH leveraged strategy has attracted significant demand with high average borrowed amount (>94% of borrowed funds are utilized by accounts with debt > 50 wstETH). Moreover, there is still unmatched demand from users willing to borrow more than 1k wstETH per 1 Credit Account.

Specification

Min and Max debt limits can't be set arbitrary. The following relation must hold: (Max Debt)/(Min Debt) < 100 / (Max Enabled Tokens per credit account) Min Debt of wstETH Correlated Tier 1 Credit Manager is set to be 50 wstETH. It's proposed to set Max Enabled Tokens per credit account = 1 to be able to raise max debt up to 5000 wstETH. This shouldn't impose significant limits on users, as rstETH is currently the only collateral available in the wstETH pool.

The proposed parameter values are:

Parameter	Value
Max Enabled Tokens	1
Max Debt	5000 wstETH

Transaction log

Txs log can be found here Md5 checksum is 3eb5c1940b081c6d25b361562e71058a

Execution

It's proposed to sign the txn listed above by the Technical Multisig as soon as the quorum is gathered (if the winning choice is "For"). Txn will be timelocked for 36 hours to be executed contingent on the actual result of the vote after it ends.

This structure is proposed to be able to execute the increase earlier.