Minimum Vault Debt (Dust) and Stability Fees Increase
On December 7th 2021, as part of the weekly Maker Governance Cycle, MKR holders voted to increase the minimum Vault Debt limit, known as Dust, from 10,000 Dai to 15,000 Dai across all collateral types except ETH-B (increasing from 30,000 to 40,000) and ETH-C (not changing). Also Stability Fees have been increased as part of this Governance vote. These changes will be executed on December 9th at 3pm CET.
What does this mean for you?
Opening a new Vault
If from December 9th, you go to open a new Vault through Oasis Borrow, the minimum amount of Dai you can generate from the new Vault will be 15,000 Dai (or 5,000 Dai for ETH-C). This means you need adequate collateral too, for ETH-A for example, this will mean at least $30,000 worth of collateral for a Collateralization Ratio of 200% (Note: the Liquidation Ratio for ETH-A is currently 145%).
Existing Vaults with outstanding Dai Debt below 15,000 Dai
If you have an existing Vault, either through Oasis Borrow or another user interface, with an outstanding Dai debt below the new minimum amounts (15,000 Dai in most cases), you have limited functionality regarding your Vault. In this situation, you will have only two options:
- Generate additional Dai to take you above the new minimum 15,000 Dai limit. You may have to deposit more collateral in order to generate this additional Dai - which must be done in the same transaction. This can be achieved by clicking the Collateral tab on your Vault page, entering how much collateral to deposit and selecting the option to ‘Generate Dai with this Transaction’ (example below)
- Or; Payback the full outstanding Dai debt amount. This can be done by selecting the Dai tab and selecting the ‘Max’ option on ‘Payback Dai’. If you would also like to withdraw your collateral at the same time, you can select the option to ‘Withdraw XXX with this transaction’ and again select ‘Max’ to withdraw the full amount.
Existing Vaults with an outstanding Dai Debt above 15,000 Dai
If you have an existing Vault with an outstanding Dai debt above the new minimum Dai debt amount , then you will have all Vault-related functionality available. The impact on your Vault going forward is that you will not be able to leave an outstanding Dai debt of less than 15,000 Dai in your Vault. So if your current Dai debt is 16,000 Dai, for example, you can pay back 1) up to 1,000 Dai or 2) the full amount, but not an amount in between.
Stability Fees Changes
The Stability Fee parameter is an annual percentage fee charged on the DAI generated on vaults. The primary purpose of the Stability Fee parameter is to compensate the Maker Protocol for the risk it takes being exposed to changes in the price of the collateral used to back the generated DAI. This fee is not charged by Oasis.app. Below the changes approved by the Maker Governance:
- Increase the ETH-A Stability Fee from 2.5% to 2.75%.
- Increase the ETH-B Stability Fee from 6.0% to 6.5%.
- Increase the LINK-A Stability Fee from 1.5% to 2.5%.
- Increase the MANA-A Stability Fee from 3.0% to 6.0%.
- Increase the UNI-A Stability Fee from 1.0% to 3.0%.
- Increase the GUSD-A Stability Fee from 0.0% to 1.0%.
- Increase the UNIV2DAIETH-A Stability Fee from 1.5% to 2.0%.
- Increase the UNIV2WBTCETH-A Stability Fee from 2.5% to 3.0%.
- Increase the UNIV2USDCETH-A Stability Fee from 2.0% to 2.5%.
- Increase the UNIV2UNIETH-A Stability Fee from 2.0% to 4.0%.
- Decrease the GUNIV3DAIUSDC1-A Stability Fee from 0.5% to 0.1%.
- Increase the WBTC-A Maximum Debt Ceiling (line) from 1.5 billion DAI to 2 billion DAI.
- Increase the WBTC-A Target Available Debt (gap) from 60 million DAI to 80 million DAI.
If you experience any issues with your Vault or have any questions regarding your Vault or Oasis Borrow, you can contact us at firstname.lastname@example.org or the Oasis Channel on Discord.
7 December 2021