Minimum Vault debt (Dust) increases to 5,000 Dai
On March 24, 2021, as part of the weekly Maker Governance Cycle, MKR holders voted and increased the minimum Vault Debt limit, known as Dust, from 2,000 Dai to 5,000 Dai across all collateral types with an exception of ETH-B, which was increased to 15,000 Dai.
What does this mean for you?
Opening a new Vault
If from March 24th, you go to open a new Vault through Oasis Borrow, the minimum amount of Dai you can generate from the new Vault will be 5,000 Dai. This means you need adequate collateral too, for ETH-A for example, this will mean at least $10,000 worth of collateral for a Collateralization Ratio of 200% (Note: the Liquidation Ratio for ETH-A is currently 150%).
Existing Vaults with outstanding Dai Debt below 5,000 Dai
If you have an existing Vault, either through Oasis Borrow or another user interface, with an outstanding Dai debt below 5,000 Dai, you will find a notification at the top of your Vault page and 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 5,000 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 ‘Deposit and Generate’ button which appears in the notification (example below); or
- Payback the full outstanding Dai debt amount. This can be done by using the standard payback button. Please note that you will not be able to withdraw any collateral while you continue to have an outstanding Dai debt below the new 5,000 Dai minimum.
Existing Vaults with an outstanding Dai Debt above 5,000 Dai
If you have an existing Vault with an outstanding Dai debt above 5,000 Dai, 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 5,000 Dai in your Vault. So if your current Dai debt is 6,000 Dai, for example, you can pay back 1) up to 1,000 Dai or 2) the full amount, but not an amount in between.
13 April 2021