DAI limit increase

I can’t think of a better time to increase all of the stablecoins limits on the tornado.cash platform from 1,000 to 100,000.

Ethereum is approaching new all-time-highs on almost a daily basis and a lot of volume is flowing in various stablecoins.

TBH, The demand for Stablecoins anonymity pools seems rather low. The anonymity set is rather weak. I think we should pick only one stable to make bigger pools. Either USDC, USDT or DAI.

I believe demand is low because limits are also extremely low. DAI would be the best pick imo.

USDT and USDC could seize funds from both contracts at any moment if they see a lot of action.

They can flag this as money laundering and nobody could do anything to stop them from freezing 100% of the funds.

Right now it costs about $300 in gas fees to make a deposit. With a limit of $1k DAI that is economically unfeasable. That’s why nobody is using it.
Make it 100k limit for all stables and watch the usage and anonymity set sky rocket.
Right now everyone is talking about TRON and checking the site, don’t push users away with irrational limits.
Also eth gas fees probably wont go down anytime soon, so anything less than $10k worth is irrational to do right now.

I used tornado in the past and I had a really good experience, i made a new account just to reply and show support to this proposal. I believe the usage would skyrocket if the limits for USDT-DAI were higher…

Agreed. Higher limit => higher demand. Whales need to cash out and whales are the only ones who can justify the high fees

If only pick 1 stablecoin to start increasing limits, I vote DAI. It’s the only one that can’t be frozen by centralized statesmen

It NEEDS to be DAI. Centralized entities don’t deserve to have even more power than they already have on this market.

If we just count a few of the recent hacks involving the theft of DAI and other stable coins you will see why this is easily one of the best decisions to be made.

There is plenty of volume and plenty of demand but at its current state tornado.cash or any other established protocols isn’t able to provide an economically feasible option.

I agree, DAI is the best. I will soon start an informal poll on the forum to agree on a new set of pools + incentive program for an upcoming proposal.

Great @Rezan . Please @ me if you need any help with anything

I would definitely vote in support of increasing the DAI limit AND adding new stablecoin assets to tornado cash (tether and USDC mostly).

These would be massive boosts to volume on Tornado, and it gives users more flexibility on which stable coins they want to use (many users hold several stablecoins to hedge against security vulnerabilities).

But it would be a governance nightmare

Every other stablecoin has a centralized off switch. If anyone puts pressure on these centralized teams, the admins can just shut off all funds that have been mixed into Tornado (very easy to imagine this happening)

If someone with Tether or USDC really wants their stablecoins mixed, they can pay the $3 to exchange it for DAI on Uniswap

I see your point.
At the very least we can vote to raise the DAI limits, and discuss other stablecoins later. $1k is absurdly low.
Is there any reason why the DAI limit can’t be $1M?

When are we going to be able to vote for this?

Made a new account just to show my support for this proposal. Its absurd the limit is so low especially considering how gas prices are & how much we have grown. I think that dai would be best since it is decentralized and not exposed to the type of risk usdc/etc/etc are exposed to

I do not see the need to raise the limit. There isnt enough users doing smaller amounts as it is. Yes i know gas is high, but to switch stable to eth, tornado cash it, withdraw, then switch back to stable isnt that big of deal.

I will probably vote yes on increasing DAI amount. But, i also thing this costs the devs / relayers money to set up that isnt coming in on any stable coin pool that we have already.

Because it costs more than a third of your deposit just for transaction fees.

That defeats the purpose of stable coins in the first place.

In moments of extremely high volatility like the one we are living in right now, you could deposit 100 eth at $1,700 and withdraw it a day after at $1,400 per ETH and lose $30,000 just like that.

IMO this is one of the best times to increase the DAI limit and to look into adding a WBTC pool.

@Taeja Your proposed workaround involves 4 transactions instead of 2. This is not likely to economize gas at all. 1 or 2 larger pools for Dai will probably allow for a much greater use in the present climate.

This proposal is the main thing stopping me from selling my Torn right now. Let’s get a contract made!

I agree with both your points, and as I already said above that would defeat the whole purpose of having stable coins in the first place.

It would also cost the same if not more if you were to submit 4 transaction in the order Taeja explained.

We are lucky to have devs who listen to our opinions and ideas (apparently it’s not like this with most ethereum projects these days…).

I’m confident we will see this come to reality sooner than we all think.

There would probably not be many $1M DAI deposits to mix funds safely. Eventually this will change though. When it does, I’ll fully support it

For starters, we should definitely start with $10k and $100k DAI pools

$1MM is too high, I don’t even think there are enough DAI holders with that many DAI to make it worth the effort.

$100k is by far the best option IMHO.

It also gives users who can’t deposit 100 ETH a way to deposit an amount in between 10 and 100 ETH (in USD value).

The more I think about this the more it makes sense to just do it.