In the last few weeks we’ve seen multiple Tezos DeFi projects (Crunchy, Plenty, Quipuswap) hit all time highs with TVL locked in them. Kolibri has also seen an influx of kUSD being minted while peg has remained stable (Metrics). Other core metrics (debt to collateral ratio, amount of kUSD available in our liquidity pool) seem stable.
Ensuring that users can mint kUSD on demand to provide liquidity or liquidate ovens is an important part of the system, as long as doing so doesn’t sacrifice stability or allow for cascading failures. The data we have indicates that isn’t the case, and the debt ceiling of 2M was hit this morning.
We’ve submitted a debt ceiling increase to 3M into the 8 hour timelock in the following operation: Operation oobPC2..5wCs on tzkt.io. After 8 hours, any user can execute the timelock and the change will take effect.
Relatedly, we’ve also presented a plan to roll out fully decentralized governance and we’re excited that the community will soon be able to govern these decisions.