MakerDAO Proposes Increasing Dai Debt Ceiling to $120 Million
MakerDAO has proposed a new ceiling for Dai after hitting its debt ceiling of $100 million on Nov. 6.
MakerDAO, which acts as a loan system administered by the Maker Foundation, reached its debt ceiling of $100 million worth of Dai and issued and more than $339 million ether locked up in collateral. Dai serves as a stablecoin used to issue and settle debts on the loan system.
In response to reaching the milestone, the Maker Foundation has proposed increasing the debt ceiling to 120 million Dai, which will have to first be voted upon by holders of MKR governance tokens.
Steven Becker, president of the Maker Foundation, told CoinDesk,
MakerDAO has hit that limit and no more [Dai] can be generated until that debt limit is increased.
MakerDAO’s debt ceiling was previously raised from 50 million to 100 million Dai in July 2018.
The decentralized cryptocurrency loan platform has experienced rapid growth during 2019, with the size of loans also growing. According to LoanScan, at least five outstanding loans total more than $3 million Dai, with two loans totaling over $8 million each.
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