Raise USDT ceiling for bridge
With the USDT ceiling being reached on Kintsugi, it is suggested to increase the ceiling by $200,000 to $300,000 USDT to facilitate enough capacity for the growth of the Kintsugi bridge.
To put this into perspective, the current ceilings in USD (prices as of 24/03/2023) are:
| Token | Current Price | Cap Native | USD Cap | % Pre-Proposal | % Post-Proposal |
|---|---|---|---|---|---|
| KSM | $33.61 | 60,000 | $2,016,600 | 84.8% | 78.2% |
| LKSM | $4.40 | 55,000 | $242,000 | 10.2% | 9.4% |
| USDT | $1.00 | 100,000 | $100,000 | 4.2% | 11.6% |
| KINT | $0.75 | 26,200 | $ 19,650 | 0.8% | 0.8% |
A dedicated analysis for the asset is not required, since liquidators will receive USDT when redeeming kBTC and thus do not have any price exposure to a token that may be falling in price, which the liquidator might want to swap for a stable coin. Hence, no slippage estimation needs to be taken into account that could limit the increase in the ceiling to a lower amount. However, due to the recent depeg event of USDC and the uncertainty of centralized stable coin issues to be able to maintain the peg, it is advisable to limit the bridges exposure to USDT.
| callIndex | 0x3d06 | ||||||||||||
| section | vaultRegistry | ||||||||||||
| method | setSystemCollateralCeiling | ||||||||||||
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