[Brainstorm] 2021 mission and objectives

Some might say we are short term focused and prone to micro-management. A previous post explored what MakerDAO can be in 5 years (without getting a clear view at the end). This post focus on the mission and objectives we can collectively decide for 2021.

Here, I define a mission as a short sentence that should be used as a red wire in almost all we do, how we should define MakerDAO in 1-3 years. The idea is to pick one in the end even if we can agree with many. Let’s define objective as a big chunk of work we want to be done around the end of 2021. We can have as many objectives as we think we can achieve. They should be open but still with a descriptive part.

This post is only for brainstorming, so we can propose anything, discuss anything and we will poll next year when the thing settle if there is enough traction. Maybe discussing the mission is more interesting, maybe starting with objectives makes more sense (quite sure there is a loop). I let you decide.

The following of the post will be updated with your addition/comments.

Mission list

Maker the CryptoBank corporation

Be the biggest bank amongst DeFi and CeFi thanks to a first-class workforce and governance.

Banks being defined as what a bank means in the future. Expanding the competitive landscape to CeFi (Square is next on the list, then HSBC and BoA). Put an emphasis on the importance of the workforce (paying our teams with the protocol money, being the best place to work) and the governance community.

Maker Autonomous Protocol

Be the leader in stablecoin lending and provide a good return to MKR holders

This is a narrower mission and it avoids pushing the scope too far and over-investing to remunerate the MKR token holders. One target is to have the least human interaction in the day to day activity. So most likely a small or no dedicated workforce and low governance overhead.

Maker The Money Lego

Be the key building block in DeFi and change the world

Support all the DeFi by having the best permissionless, trustless system. Be at the bottom on the Protocol Sink Thesis. Put an emphasis on the protocol versus front-end for instance. Also, need a lot of interaction with other protocols to collectively create the best possible version of DeFi.

Maker Making the World a better Place

Banking the Unbanked

Put an emphasis on the retail market, marketing, and the front-end. Leverage the work done by the Foundation in Latam and elsewhere.

Objectives list

Sustain a workforce

Attract, nurture, and retain a sizable workforce. See [Discussion] MakerDAO Contributors compensation brainstorm, [Discussion/Request] DAO's Organigram, and probably other discussions. Target full autonomy from the Maker structure (i.e. all facilitators and domain paid by the protocol).

Create EUR-DAI

Expanding from the DAI success, we will launch a Euro (or another currency, just for illustration here). It will be an independent copy/paste of the current DAI credit system (but all based on MKR at the end).

Depeg from USD

In order to avoid regulation issues, a new version of DAI will be launched (on the side) not related to any currency (maybe something inflation-linked). In case of a regulatory issue, we would depreciate the $-based DAI.

Launch Real World Assets

Target $300M RWA loans for the end of 2021.

Limit stablecoin exposure

The stablecoin exposure is around $500M at the end of 2020. It should be significantly lower (< $100M) at the end of 2021. The main solution is to add new collaterals but reducing SF or any other solution might be needed as well. cUSDC-type vaults are considered as stablecoin exposure.

Third-party protocol specific vaults

Integrate with at least one third-party protocol like Yearn (like yETH, yYFI) or B-Protocol by providing them dedicated vault facilities. We can give them better risk parameters because we are confident that they will manage their position more carefully.

Develop a solution to bank the unbanked with the Maker ecosystem

Open to suggestions on this one by basically expanding on this post. Maybe having > xM users in LATAM at the end of 2021?

Use MakerDAO balance sheet to generate revenues other than stability fees

Basically, MIP32: Peg Stability Module - Compound Mixed Exposure. Can also link to Balance sheet manipulation: How to yield farm safely on Uniswap and MIP31: Active Reserve Via AMM. Objective: generates more than $10M of revenues on an annual basis from such channels.

Layer 2 solution (including other chains)

xDAI or something else. Autonomous or just a L1-L2 bridge. More info on Ethereum L1 Gas Issue for little Dai holders/investors (ES/EN/PT)

Own and manage Maker assets

More or less take ownership of makerdao.com and establish a MakerDAO brand on it. Currently, things are confusing. That would also mean paying a team to manage that.

Improve protocol functionalities

We should keep up with the competency. There is a lot we can do in this regard, adding Flash Mint module, we could use it to improve our internal functionalities, permitting things like Collateral Swap for the Vaults (integrating properly with Uniswap),

Special features for MKR holders

i.e. special lending feature for them, permit to borrow from special reserves, anything which makes holding MKR something with greater benefits

Governance by “political parties”

Delegated voting to bridge the discussion between the governance forum and the MKR whales.

Decentralize MakerDAO

Having MKR_t token/DAO for each collateral and automate the DAI_t <=> DAI convertibility if some solvency rules on this MKR_t DAO are satisfied. See more here.

Partners support

The value of DAI depends on having a whole ecosystem using it. Foster “Internal Incubators” encourage our world-class people to build things using our Credit System: what better way to harvest intelligence than to make your people use your product, love it and have “skin in the game” to improve it? (as old as Ford selling cars to his employees) Plus, with a truly global workforce, you could make Maker/DAI truly global.

Make Maker/DAI explainable to 5 year olds

With global communication, ideas spread fast. Simple ideas spread faster! If we want DAI in Latam, Africa and everywhere else, we should make it the most simple and powerful idea ever :rocket:

Implement mechanisms to keep us opened to new DEFI users

This has become IMO a very important objective given what has been discussed in Signal Request to Increase the Dust Minimum.

We could start with simple proposals like Creating a Bite-Rebate Contract for Keepers Acting on Small Vaults

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Use MakerDAO balance sheet to generate revenues other than stability fees

there is MIP32 too :wink: probably more than MIP31.

I would say MIP31 will be more a reserve with a usable functionality and dai/mkr staking.

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Nice post Seb! Good way to bring the community back to the Maker State of Mind.

From the Mission List:

Personally I’m not too crazy about the label “CryptoBank” – would prefer anything without the “bank” in it. Just makes me feel like we need to be Regulated like banks by the Federal Reserve System and others. Maybe I’m overthinking it.

Also, not feeling the “Maker The Money Lego” theme. IMO, if it will be know by mainstream people as "Money Legos’, let it happen without Maker pushing the narrative. If Money Legos fall, don’t let it include the Maker Community as one that label itself as proponent, or opponent of such, IMO.

Otherwise, totally loving the Maker Autonomous Protocol and Maker Making the World a better Place Missions.

From the Objectives List:

I’m with you on all the objectives, except Depeg from the USD. This Holiday weekend I tried to showcase Ethereum to one of my cousins by placing a Sports Bet via the Degens App. After showing them how to install Metamask and loading some ETH and DAI to place the bet, I had to explain why the ETH Gas fee was $16 for a $100 bet. My cousin, said “I thought the idea of decentralization was to cut the “middle man” out.” Followed by “I guess at the end of the day, everything in life is All about the Dollars”.

Which makes me realized that we are mentally all PEGGED to the U.S. Dollar. That will not change in our lifetime. Maybe in our great great grandkids life, but not right now. Sadly…

Layer 2 Solution (including other chains)
:point_up: I wish I could LIKE this 10,000 times!

Anyhow, this are solely my opinions, Not Financial Advice, or legal advice.

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Mission

My vote goes for “Maker the CryptoBank corporation”

IMO, our possibility to grow will come with the amount of resources (workforce) we have, and how well could we improve the DAO governance. I strongly think that the states and governments will want to control what we do at some point in the future (at least in next 5 - 10 years), I don’t think the crypto-space will keep being the wild-west forever. Not in the short term, but we should start getting prepared to be regulated, and that means, to structure the DAO more similar to a big corporation. All the other missions are something we can accomplish within this one.

Objectives

  • Sustain a workforce
  • Launch Real World Assets
  • Limit stablecoin exposure
    • Would like to express this in a different way, we should reduce “direct exposure”, but it is valid to increase (IMHO) exposure to stablecoins if they are “wrapped”, specially by liquidity provider pools (ie. yCRV, curve 3pool, UNI-V2-USDC-USDT and similar pools.
  • Own and manage Maker assets
  • Use MakerDAO balance sheet to generate revenues other than stability fees
  • Third-party protocol specific vaults

I would add:

Improve protocol functionalities

We should keep up with the competency. There is a lot we can do in this regard, adding Flash Mint module, we could use it to improve our internal functionalities, permitting things like Collateral Swap for the Vaults (integrating properly with Uniswap), offering more features to MKR holders (special lending feature for them, permit to borrow from special reserves anything which makes holding MKR something with greater benefits).

These objectives I would love to follow them, but not for 2021, more for the years to come:

  • Create EUR-DAI
  • Develop a solution to bank the unbanked with the Maker ecosystem
  • Layer 2 solution (including other chains)
    • I always like to think that Ethereum 2.0 is going to be the solution here, but I know that’s too long of a wait.

I’m not in favor of:

  • Depeg from USD

we should solve this adding “other pegs”, rather than removing the USD peg as a whole.

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Same as missions, I’m not saying what I want but trying to list all I can think of (and that might be interesting). Feel free to add more items, that’s the whole idea.

Exactly why I put it in (same for corporation btw). We need to dig deep to understand what we are trying to achieve. Your mention of “regulation” shows that I missed this item. But we are all against it, just unsure how it will be imposed on us and how to avoid that fact. The unpeg to the dollar was mainly to avoid regulation and it’s the objective you like the least (which I agree as well). How do we solve this issue (avoiding regulation but staying in the regulator aim)? The purpose of this exercise is also to find those “issues” that need more discussion.

Also, I don’t think we are working at all on a L2 solution, so good to push it on the front!

This doesn’t mean we’re not going to be regulated at some point. We all want RWA, that just increases the possibilities of us being forced to be regulated (a lot, maybe even more than the Stablecoin exposure). RWA can grow by the billions rapidly IMO, when a government force us to follow some regulation or invalidate somehow our contracts, we are not going to have many options I think.

I would like that the crypto-boom conduct to the establishment for “global regulations” signed by multiple states (since we cannot simply register a DAO in a state, maybe the solution the governments finds is to force us to register with a World Organization, and even pay taxes to that one… hard to believe though that worldwide governments will agree on this though).

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Is that related to earning fees or something else? Just wondering how to write that as a new objective.

@smaugho Fully agree with you on regulation. Really think I should have added a section regarding regulation. What we see for Maker in the future probably depends on our perception of the regulation.

Liquidity Providers earn fee giving their funds to these pools (in Curve, Balance, Uniswap, …). They receive the UNI-V2-token, yCRV and others which represents their ownership of a percent of that pool. Leveraging being a liquidity provider or being able in general to be in those pools and still be able to get DAIs to make other things is a dream many liquidity providers probably share. This says that we have a secured market here which will be willing to get DAI from us, and we’re talking of a huge one!

Now, we are against holding centralized stablecoins specially due to the possibility of they black-listing our contracts. But delegating that risk to the pools, makes it (IMO) far less probable that holding the USDC-USDT-TUSD ourselves (a government will have to order to block whole a huge pool, and even several stablecoins inside that pool; and in the years to come, these pools will grow bigger and bigger, I’m pretty sure of that, if we don’t offer those leverage opportunity with DAI, someone else will do it and those pools after that will 2x - 5x rapidly).

Therefore reducing our exposure to USDC directly (or USDT, or others) is fine and a must do, but we should keep us open to something more interesting based in stablecoins, and I see that in the liquidity pools.

(in the future, yASSETS, fASSETS and similar, based in stablecoins are going to be the same or more valuables I think)

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Well, dai-usdc pool in uniswap is currently yielding aprox 14%, onboarding the LP at 1,1 CR would be a nice hit in the market and we could get some interesting fees (somewhere between 5-10% with no risk of liquidation)

I would say that we need to establish leadership of makerdao to achieve any of these goals. Every successful project in Defi has a recognized leadership. Rune has basically checked out and its not clear who will step in to fill the void. MKR voters are doing an admirable job voting on executives, but its not a scalable and sustainable model. MKR voters should be having 1-2 votes per year on big issues and the rest should be delegated to leaders that can hire the right people and make technical changes to the contracts and system parameters.

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Organization and transparency are going to be key. I agree.

This DAO has accomplished so many groundbreaking achievements, The MakerDAO journey is however, only just getting started…

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There is lot of people talking about how the dollar will be deprecated in the incoming years, so creating an EUR-DAI and Depeg from USD is not so crazy as we think, but for now the dollar peg is needed to keep bringing people, for example, here in LATAM, DAI is famous because of its USD peg.

This a think is a very important point, MKR holders (the base of everything here) should feel like they are being rewarded for their good job, something like this post. Here in DeFi people likes to feel rewarded and helpfull, so this is the way of getting out MKR from other places and have it here, on MakerDAO.

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is it possible to keep both ? DAI and something like a eDAI (euros-DAI) ?

This can be done a Maker way by giving more power (or at least the mandate) to domain facilitators AND/OR by having delegated political parties. No option will emerge organically. I will add this item to the list.

That’s what I put in the objectives. It’s duplicating the system (but keeping a single MKR token). Leaving DAI $-peg would be madness and really difficult. The harder part is not getting the SC done, it’s developing the ecosystem.

For EUR, there is now a pool on Curve. Still early, but it’s always better to be early.

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YEs sorry didn’t read properly. I thought you wanted to de-peg from $ and peg it to Euros.

Yes i know ! And it’s amazing. But sEUR is relatively hard to generate and EURS is not decentralized. I’m sure there is a lot of demand for an Euros stablecoin. First by European people but also from people around the world. So no doubt is will work and people will use it.
But regarding regulation i’m not sure Europe will be more friendly than US…

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I think this is just a question of time. Hard to say, but very well 2021 could be that year in which EUR invades the blockchain.

EUR/USD pair is one of the biggest pairs in the forex market, it accounts for around 25% of the total FX volume (talking about 5 trillions turned over everyday). I only see the centralized markets to move to the blockchain from now on, therefore EUR pegged “DAI” is something needed in coming years for sure.

We should definitely start working on it, but I’m not sure if 1 year of work will be enough for it (it’ll be our first second pegged currency, therefore lot of work will be needed, and we’ll be learning a lot of things on the way, risk-wise, we should take our time for this). That’s why I see this as an objective for 2022 and not an immediate one.

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Maybe a CHF pegged DAI would be better since they are crypto-friendly and regulation is lax. Whereas the US regulators are moving in the opposite direction and the EU is looking into a digital Euro.

If i understand what @SebVentures said . And if ecostustem means what to do with a DAI-Euros. I think it should be relatively easy. I’m sure all protocole using DAi ($) will be happy to also use DAI-Euros

But do you think people will use it ?

EUR is also used in countries which are very crypto-friendly (ie. Malta, Estonia). IMO, euro-regulations for crypto are much more difficult to impose by a single state, and even if that’s the case, it doesn’t mean other states using EUR will support such regulations. It’ll be harder that all the eurozone impose regulations. In this regard, I see EUR ways more secure than USD.

This is referring to CHF, and that’s a very strong point in the sense, that the adoption will come with the amount of trading in that currency. In this case, EUR and GBP are probably the best candidates.

The anonymity of how our current system works helps bring in ideas and prevents people from being scared to speak for the possibility of having it affect them in the real world. If we want to retain Maker as a DAO installing leaders to do the bulk of the executive work would be a disservice. However, I believe delegation will fix much of that as people can give their voting power to others they believe hold similar views. That would fix the leadership issue you point out.

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