Statement from the EC regarding new minting limits on USDC and USDT

[update on minor but semantically significant typo in the title of yesterdays EC statement post]

The Economic Committee has voted for a 50% increase in the IST PSM limits on USDT and USDC, and left the DAI limits as they are. The resulting limits are the following:

  • USDC (Axelar) - $2 million
  • USDC (Gravity) - $2 million
  • USDT (Axelar) - $975,000
  • USDT (Gravity) - $1 million
  • DAI (Axelar) - $1 million (unchanged)
  • DAI (Gravity) - $500,000 (unchanged)

The rationale for this increase is two-fold.

First, the Economic Committee is very comfortable with the technical performance of the Inter Protocol, especially given the market fluctuations in March, and given the demonstrated interest in IST, a considerable increase to the limits, particularly USDC (Gravity), which has been routinely at its maximum, is justified.

Second, the limits have been increased in the expectation of the imminent launch of vaults. It is in the interest of the stability of IST that vaults are launched into an environment where IST is both available and liquid for those who wish to use it. Increasing the PSM at this stage is both prudent and in the interests of the success and adoption of IST.

We have limited the increase to the directly fiat-backed assets of USDC and USDT. This is both in an awareness of ongoing changes at MakerDAO as part of the ‘endgame’ strategy, which the EC will monitor, as well the EC’s preference to focus the role of the PSM as we move to the launch of vaults.