Converting between ETH-A, ETH-B and ETH-C Maker Vault types using the Loan Shifter

You can shift between ETH-A, ETH-B and ETH-C Maker Vault types using the Loan Shifter.

This is something that would also be doable for any other collateral type where they MakerDAO introduces alternative Vault types (e.g. -B and -C subtypes).

Why do this and whats the difference?

MakerDAO governance introduced the ETH-B Vault type in late 2020 with the goal of providing a riskier option that allows a lower minimum collateralization ratio, meaning you could generate more Dai (or achieve higher leverage) than previously possible with ETH-A.

And then, the additional ETH-C option was introduced in March 2021 to provide an option with lower interest rates for those holding very safe, highly collateralized positions.

More specifically, the differences between the three options are:

  • ETH-B: 130% min c-ratio (77% max LTV), 9% Stability fee
  • ETH-A: 150% min c-ratio (66% max LTV), 5.5% Stability fee
  • ETH-C: 175% min c-ratio (57% max LTV), 3.5% Stability fee

*Unfortunately the ETH-B debt ceiling has been maxed out for a while now, so you’ll almost certainly not be able to convert your ETH-A/-C Vault into -B, but any other direction will be doable.
The debt ceiling statuses can be tracked using DeFi Explore.

What are the steps for shifting between two Vault subtypes?

If you at any point want to shift your Vault into a different type, the steps are fairly simple:

  1. Login at https://app.defisaver.com/
  2. Navigate to the Loan Shifter
  3. Select the Protocol option
  4. Select your current Vault you want to shift on the left, and select the target Vault type on the right
  5. Hit the Shift button and confirm your transaction. As soon as it confirms, your Vault will have been shifted to the other chosen option.

Note that you could also use the Loan Shifter to merge two Vaults into one, as long as they are the same type.

For additional options (such as converting an ETH Vault into a WBTC one, or shifting a MakerDAO Vault to Compound) please see these articles:

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Updated with support for ETH-C and some info on it. :sunglasses: