Simple Summary

This SCCP proposes to decrease the maxTokenAmount on the DAI wrapper to zero from 20 million sUSD.

Abstract

The maxTokenAmount is the maximum amount of synth that could be minted against a deposited a designated underlying.

Motivation

DAI was initially on-boarded in SCCP-264 in order to provide traders with synth liquidity in order to meet the growing demand for sUSD in order to trader perps. As we approach closer to the release of v3, it makes more sense to gradually phase out DAI liquidity and it is the opportune time to do so, given the available of sUSD in curve pools. With v3 being released, sUSD would be much easier to scale given it's features that allow for onboarding of different collateral types and having wrappers that are more sensitive to the skewness of the debt pool. Finally, there are alternatives available right now (LUSD, GHO, CRVUSD) should there be a surge in sUSD demand, which reduces the risk the protocol takes by backing a significant amount of the debt pool against a single stable.

Copyright

Copyright and related rights waived via CC0.