MakerDAO Proposes New DAI Ceiling After Hitting $100 Million Cap

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The MakerDAO loan system, administered by the Maker Foundation, hit its debt ceiling Wednesday with roughly $100 million worth of the stablecoin DAI issued and more than $339 million worth of ethereum locked up as collateral.

On Thursday, the Maker Foundation proposed a new debt ceiling of 120 million DAI, which will now be voted on by holders of MKR governance tokens.

This follows the previous raise in 2018, which doubled the DAI debt ceiling from 50 to 100 million stablecoins.

Back in July, the MakerDAO Foundation's Joe Quintilian told CoinDesk he "Wouldn't be surprised" if the first $3 million loan was issued by 2020.

As of November, there are at least five loans exceeding that amount, including two loans over $8 million each.

Michael McDonald, creator of DAI analytics site mkr.

Tools, said in July that raising the debt ceiling might require a higher "Stability fee," the interest rate users must pay when they close out their DAI loans.

Thursday's MakerDAO Foundation proposal to boost the debt ceiling to 120 million DAI also put a 5 percent stability fee back up for a vote.

As of Nov. 18, MakerDAO will switch to a multi-collateral system, where users can put cryptocurrencies beyond just ETH into the DAI system.

One aspect of the current MakerDAO migration that troubled Monahan is calling the collateral process a "Vault," as if the ether collateralized to issue DAI was stored for safekeeping with no further action required on behalf of users.

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