Proposal #110
Raise USDT ceiling for bridge
Democracy
0 Comments
Tabled

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.

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Metadata
hash
0x5477f1e870a904c8360826432a51c52ef40cad803db6fce708e558998a0434ca
deposit
0 KINT
proposer
Call
Table
Json
callIndex0x3d06
sectionvaultRegistry
methodsetSystemCollateralCeiling
args
currencyPair
collateral
foreignAsset3
wrapped
tokenKBTC
ceiling300000000000
TimelineLatest activity undefined
2023-03-24 17:53:12
Proposed
Index
#110
2023-03-27 09:00:12
Tabled
Referenda Index
#102
Deposit
5 vKINT
Depositors
2023-03-27 09:00:12
Started
referendumIndex
102
voteThreshold
SuperMajorityApprove
2023-03-29 10:19:42
Passed
referendumIndex
102
2023-03-29 16:30:12
Executed
result
ok
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