Despite several weeks of turbulent markets and a sharp reduction in the alUSD reward weight, the alUSD peg has held incredibly well. It is clear that there is the demand to raise the cap and to give the people what they want, more alUSD.
The team is confident we can handle a large increase to the debt ceiling, however, we don't want to do it all at once. Therefore, for AIP 13, we propose that we have the clearance to raise the debt ceiling from 125m to 200m over the course of three steps. Initially, we will raise it from 125 to 150m. We will raise it to 175, and again to 200 if the peg is stable and market conditions permit.
Approving this governance action will allow the team to conduct three debt cap raises up to 200m alUSD. The core team will proceed with the utmost caution upon each successive debt cap raise and will prioritize the peg and system stability over anything else.
Rejecting this governance action indicates that you are in favor of an alternative proposal and or reject this proposal.
This will be on snapshot: link incoming.
