Collateral Call Update
- A quick word to echo what Amy was saying. I’ve been working with different groups on several fronts, and hopefully, we’ll have more information next week. One of the topics is about decentralization; Anything that has to do with more permanent ways of being decentralized and organizing the whole thing.
- Long already mentioned in the tools section that one of these topics is the MIPs portal. We’re trying to build a UI that can help people navigate through the MIPs. Hopefully, we’ll have an MVP soon. Then we can start playing with it and giving feedback and have a tool we can use to understand the MIPs and how to work with them. I’m helping Peyton with the MIPs tracker. He’s doing all the heavy lifting, but I’m helping him to build a tool that mimics what we did for the collateral onboarding. That way, we can prioritize which MIPs we should focus on. This will help more clearly communicate to the community and help ourselves along with the different teams to understand what’s missing.
- Concerning the collateral calls, we had a call yesterday with the xDAI team regarding the MIP6 application mistake. We also had Patricio from POAP, the Proof of Attendance Protocol, jump in, and explain why they moved to xDAI the call is already on YouTube. You can check it out on the MakerDAO YouTube channel.
- Next week, we have a Harbor Trade Credit. We’ll have another real-world asset call. They were with us at the end of December. We’ll have them again with Seb, Leia, and Lucas from Centrifuge. Same time on Wednesday.
- The following week, we’ll have the team from Lido which are bringing staked ETH 2.0 back to ETH 1.0. There’s a lot of questions for them as well. The agenda is coming soon. Anna from the snippets team, sorry for that. I don’t have it yet.
- LongForWisdom: Thank you, Juan. I’m losing track of how many different meetings you are setting up, which is probably a good sign.
Charles St. Louis
- Charles: That is my update for the MIPs. I do have another update; a little bit more of a bittersweet one. After two years of working at the Maker Foundation, I have officially left. My last day was this Tuesday. I will still be around in the community. I’m still the MIP editor and will keep supporting Governance, MIPs RWA, and DAO initiatives. I just wanted to make this clear to everyone. Thanks.
- LongForWisdom: Great, thank you, Charles. I’m glad to hear you’re sticking around in terms of the DAO. I would not like to have to handle the MIP stuff on top of the governance facilitator stuff.
January MIPs Inclusion Review
- LongForWisdom: Let me do the MIPs inclusion review. As Charles mentioned, all but one of the inclusion polls passed. I see no reason why the ones which passed cannot continue into the MIPs bundle poll on Monday. The one that did not pass was the declaration intent for Nexus Mutual insurance for the Maker protocol, which will not be included. It may be resubmitted in the future if the author wishes to do so.
- LongForWisdom: We have 20 minutes left if anyone wants to start a meaty discussion. We could briefly discuss onboarding, which Amy had mentioned. I had a conversation with Primoz about this before. Primoz, would you like to talk to speak about this briefly?
- Primoz: There’s not much to say. Most of my team consists of community members. When I see nice replies on forums, it’s much easier to get in touch with them and then see if they cover the risk work. People who come to the forums know something about Maker, which could be quite complicated. I remember that we had tried tweeting out to get people to join the risk team at Maker sometime in the past. Some ambitious people applied. It’s tough to start in the beginning. Things could be complicated, and working on risk could be challenging. It’s much easier if people know about it because then we don’t need to educate them. I feel great that community participation is growing on forums. For example, last week, there was a call about auctions. Andy made great insights, and he’s going to hopefully help us with auction analytics, which is one of the angles that we’ve been missing in the past. That’s my impression about how to deal with such things.
- LongForWisdom: Any other thoughts on this?
- Brian: I just wanted to say, welcome to the smart contract side. Decentralized engineering is very stressful. There’s an orchestration that generally happens. We could work together to make this succeed, and I look forward to it! Welcome aboard, and we’ll see you making that executive next week. I’m excited about that.
- SamM: Thanks, I appreciate that. Long, could I run over the PSM? There have been some updates.
- SamM: The PSM was filled out last week. This week, 1inch added the PSM as one of the liquidity providers. We’ve started seeing some trades going through there via 1inch. They’re pretty quick. Next week we’ll be crafting the community executive. The plan is to increase the PSM debt ceiling to 80 million and attach a
lerp module to increase it by an additional 33 million each week until reaching the 500 million target after 12 weeks. This is a nice balance between being cautious and moving towards the governance mandated goal. The UI will be ready soon as well.
- LongForWisdom: Great, how have you found onboarding in terms of the smart contract stuff? Do you have any thoughts on what can make it difficult or easy?
- Chris: Careful, Sam, I’m listening.
- SamM: It’s been great a great experience so far. I love working with everybody on the team. I’ve enjoyed getting more involved over the past several months. I’m happy people enjoy the work that I’m doing, and I’m excited to do even more.
- Brian: We have weekly meetings focused on planning and things like that. I want to get you involved in those. It depends on your time, but we’ll figure something out.
- SamM: I’ll be there.
- Amy: I also want to mention that one of the things working for us when you’re hiring through a community. One of the principles is organic first. Instead of putting a job listing and people applying, you say here’s some stuff that needs to be done, or people self identify and say this is the stuff that I think should be done, and then they do it. Sam is the master of that. If we want to continue, a lot of things that we’ve been seeing which have been working are having something such as autonomous MakerDAO when we identify a few key areas and then can have people fill in their skillsets. Maybe once or twice, I’ve seen where people’s skillsets don’t necessarily fit exactly, and we’ve recalibrated a little bit. Sometimes you might see that, but usually, that’s been working for us. It’s like a slow and steady route rather than just bringing on people and having a formal recruiting committee. That’s the state we’re in right now.
- LongForWisdom: This is something I’ve noticed for a little while up until this point. We don’t have a massive flood of people coming. Every month that passes, we pick up 1 or 2 intelligent and awesome people who stay. That’s great to see because it shows that the protocol has power in terms of people enjoying working and wanting to stay. It’s interesting how it evolves. It’s good to see.
- LongForWisdom: Any other questions? Feel free. Maybe it’s worth mentioning some of the auction stuff again. It was a relatively significant part of last week’s meeting. We saw the poll pass this week for updating the
beg and the
ttl for the
flap auctions. We haven’t seen it implemented yet, so we don’t know how much of an effect it will have. Has anyone been following the auctions and have any idea on whether or not they’ve gotten better or worse?
- Chris: I was following the
flap auctions. I had a conjecture last week. Due to gas prices, we weren’t seeing people do the
flap and then attend to take that initial bid. That’s why we ended up in this sort of zero bid scenario. The gas prices fell significantly a few days ago. They weren’t cheap, but they were around where they were a year ago. They were about 60 or 50 gwei, and all of a sudden, the zero bidding auction keeper and the other auction keeper that was participating when gas prices were low both came back and started
flapping exactly how you’d expect. That’s a pretty clear signal that the beg is set too low for that type of behavior and high gas scenarios.
- LongForWisdom: That’s good to hear. It’s one of the things you end up keeping an eye on.
- Chris: Has has anyone put any thought into the idea of finding a community member that would be willing to bite liquidations for the rest of the auction types out there? We’d end up reimbursing them for bites or giving them some amount of money to call bites or something like that, at least until we get to liquidations 2.0, where we have an incentive mechanism.
- LongForWisdom: This is similar to what B.Protocol was proposing. It’s possible that they’d be willing to run a bot to do that. They were talking about keeping low debt vaults below or near the
dust limit. Maybe they’d be willing.
- Chris: That’s an excellent point. We could subsidize the
- SamM: I was going to say that this has become a bit of a problem. We require these altruistic bites. I’m developing the PSM
flipper as well, and currently, the design requires these altruistic biters. Like Brian is said, we need something like the keeper network or Dss Chron. We will need to address this more permanently.
- Brian: Liquidations 2.0 will essentially have direct governance controlled incentivization of barks? Will we be able to pay those out directly? It’s the interim we need to be worried about and any new modules that don’t conform to them.
- SamM: Right.
- Prose11: I know Yearns code from B.Protocol that he whipped up was essentially allowing a call of bite with rebate rather than bite and filling up a smart contract with some DAI to pay out those gas rebates.
- LongForWisdom: Essentially, a wrapper contract around the bite could be filled with DAI and provide rebates.
- SamM: That’s what Dss-Chron does. It will provide these rewards for anybody that wants to call bite.
- Prose11: I like the idea, but it also seemed like a few people were willing to contribute DAI, which was neat and unexpected. B.Protocol was one of them.
- LongForWisdom: I think we need to get an idea about how much it would cost to subsidize what we want. If anyone is interested in investigating that more thoroughly, please do.
- Brian: If we’re talking about filling up new roles, I think Chris brought it up last week. We need more of a product manager type of roll that works with front-end developers, smart contracts, documentation developers, and MIP editors to take care of a project for the full life cycle. We can add a new smart contract, but new developers can’t come in and quickly get up to speed on it without the documentation. If it’s not documented, integrators may decide it’s not worth taking the time to integrate. Documentation is important. The UI is important. One of the things we realized on Black Thursday is that we didn’t have a good UI for the auctions. We assumed people would come in and use them. Having someone who can facilitate all of the aspects around releasing a new item would be insanely beneficial. The Foundation takes care of this now. I want to toss it out there as an idea and an opportunity for someone to coordinate.
- LongForWisdom: That’s a good point. We want to document all of these parameters.
- Brian: Every time we add a new adaptor or module on, somebody has to learn that when they come in, they need to get their head in the system. Whenever we add a new thing, if it’s not streamlined, that’s another cognitive overhead item. Documentation is essential, as well as accessibility for the community and integrators.
- LongForWisdom: Since we’re talking about new roles, this reminds me of something that someone had posted on the forum. This was an informal poll asking whether MakerDAO should employ a recruiter who will go out and find people that we need to get certain things done.
- Tim Black: I think that can make onboarding easier. If you have clear expectations upfront, it is easier to sort and find people who could fill those things.
- LongForWisdom: That works better for some things than others. It works reasonably well for Governance and smart contracts.
- Amy: Many of the things that I’ve been fielding regarding the interim solutions versus the long-term solutions is that the DAO can offer something like that. We’re not a traditional company that offers XYZ. I’ve had many conversations and set expectations in terms of getting to receive DAI. There are different ways you can coordinate that. It will also help once things are a little more decided on in the DAO. Then we could go ahead and be more active on it. I’m very patient about it, but I think that’s why being involved in these conversations is pretty important. It begins to set the benefits of working in the DAO.
- LongForWisdom: That’s important. There are many things that the DAO will initially have trouble dealing with in terms of benefits. We need to figure out what aspects of DAO employment are great and recognize some things we can’t cover, and compensate for that in terms of salary loss. Working for the DAO is pretty cool in general. Anyway, it’s time to wrap up.
Common Abbreviated Terms
MCD: The Multi-Collateral Dai system
CR: Collateralization Ratio
DC: Debt Ceiling
SF: Stability Fee
DSR: Dai Savings Rate
MIP: Maker Improvement Proposal
OSM: Oracle Security Module
RWA: Real-World Asset
- Anna Alexa K Produced this summary.
- Artem Gordon produced this summary.
- David Utrobin produced this summary.
- Denis Mitchell produced this summary.
- Jose Ferrari produced this summary.
- Everyone who spoke and presented on the call, listed in the headers