An upcoming Executive Vote will introduce key parameter changes to @sparkdotfi’s DAI liquidity deployment on Morpho Blue. The proposal aims to increase the Direct Deposit Module debt ceiling to 1 billion DAI, with an initial allocation of 600 million DAI, as recommended by the @BlockAnalitica team considering potential risks and market conditions. If this Executive Vote passes, the following changes will take place within the Maker Protocol: 📈 Debt Ceiling increase • Increase the Direct Deposit Module's debt ceiling for sUSDe and USDe/DAI markets on Morpho Blue to 1 billion DAI to enhance liquidity. Recommended Vault DAI allocations: • Total allocation across all pools: 600 million DAI (+500 million DAI) • Specific allocations to various LTV pools as detailed in the proposal. 📊 Performance and pool selection adjustments: • Prioritize allocations towards USDe pools over sUSDe, reflecting user preferences and risk considerations. • Focus future allocations into the 86% and 91.5% LLTV pools for USDe, aligning with demand trends and liquidity risk assessments. 📊 Vault parameter adjustments • DDM DC-IAM Parameters: Line: 1 billion DAI Gap: 100 million DAI TTL: 24 hours • MetaMorpho Vault Parameters: Market Caps: • USDe 77% LLTV pool cap: 1 billion DAI • USDe 86% LLTV pool cap: 500 million DAI • USDe 91.5% LLTV pool cap: 200 million DAI • USDe 94.5% LLTV pool cap: 10 million DAI • sUSDe 77% LLTV pool cap: 1 billion DAI • sUSDe 86% LLTV pool cap: 200 million DAI • sUSDe 91.5% LLTV pool cap: 50 million DAI • sUSDe 94.5% LLTV pool cap: 10 million DAI Risk Management Highlights • Cautious allocation: Initial allocation is strategically capped at 600 million DAI, based on comprehensive risk considerations including market exposure limits. • Ensuring stability: A focus on risk minimization and ensuring returns are in line with anticipated risks and capital costs. • Future flexibility: The 1 billion DAI debt ceiling prepares for gradual, risk-informed adjustments to market changes and growth opportunities. • Efficiency and data-driven adjustments: Enhancing liquidity pool efficiency and adjusting allocations based on market performance and the Ethena points program. Impact of the proposal The successful implementation of these changes will not only enhance the liquidity and efficiency of Spark’s DAI MetaMorpho Vault but also refine the risk profile of the vault's operations. By aligning the vault's parameters with the current market dynamics and user preferences, we can ensure a more robust and responsive liquidity framework within the Maker ecosystem.

@sparkdotfi Get the full context on the proposed changes in the original post on the Maker Forum ↓ https://t.co/pa0YilOpJM