The purpose of thread is to reduce the debt ceiling of the stablemint vault- AXL USDC from 40Mn to 2Mn. Being the first asset through which CMST was minted, we had kept the ceiling at a higher end. However in light of recent events and as a safety measure, the protocol would want to reduce this number to $2Mn.
Update: The new debt ceiling proposed by the team is $1.25Mn.
Reducing the debt ceiling of the StableMint vault- AXL USDC from 40Mn to 2Mn will definitely help to mitigate the risk associated with relying too heavily on one asset, ie USDC.axl as the backing asset for CMST.
The current ratio of 80+% of CMST being backed by USDC.axl leaves us vulnerable to the risks associated with this asset.
Encouraging the minting of CMST via other vaults, including the StableMint Vault for DAI as well as via Vaults of OSMO, JUNO, wETH, wBTC, wMATIC among others, will not only help to diversify the backing assets for CMST but also contribute to the safety and growth of the token in the long run.
Making this change will benefit the protocol and the users alike.
Smart move. Sad it has to be like this to play safe, but a good thing; better safe then sorry at this stage.