Authors

@desnakeee

Summary

This proposal aims to increase Credit Managers' debt limits on Arbitrum.

Motivation

Currently, risks associated with specific assets are managed through a thorough process of setting quota limits and LTs. However, Collateral Managers (CMs) lack specialization, resulting in CM-specific portfolios of allowed collaterals having very similar risk profiles.

For example, a Tier 2 WETH CM on Arbitrum differs from a higher-tier CM only due to the presence of the ARB token, which has the smallest quota and reduced LT.

Therefore, it is proposed to significantly increase the borrowing limits for all CMs (effectively making them unlimited compared to current levels), regardless of their tier. This proposal is suggested to be implemented on Arbitrum first, as multiple CMs have already hit their debt limits, preventing further utilization.

Technical implementation

Credit manager	Proposed debt limit
Trade WETH Tier 1 Arbitrum	8000 WETH
Trade WETH Tier 2 Arbitrum	4000 WETH
Trade USDC Tier 1 Arbitrum	16000000 USDC
Trade USDC Tier 2 Arbitrum	8000000 USDC

Transaction log

Transaction logs can be found here md5 checksum is 40a741e2a7c06891c2156af1533b376d.

Voting

Simple Approve/Reject