Collateral Onboarding Framework - a model


After working with the domain teams and some community members, we are happy to announce the first version of the Collateral Onboarding Framework Model!

What is the Framework

Collateral Onboarding Framework is a model that attempts to compare and prioritize collateral types in an as-objective-as-possible way, in order to seed intelligent discussions.

Why was the Framework made

The Framework was created to allow Domain Teams, Working Groups, and external contributors to have an overview of the collateral types, their onboarding status, and their different characteristics.

We also wanted to provide transparency to the broader Community and a common ground for discussions and potential future collaboration.

Where is the Framework

The Collateral Prioritization framework will live on this Google Sheet, until a better option becomes available.

We are discussing the possibility to build a dashboard or UI in the future, but we felt it was essential to launch the Framework in order to kickstart the process sooner rather than later and iterate on the functionality before exploring different hosting options.

How to read the Framework

  • Row 1: name of the Domain Team or Working Group that is responsible for that parameter.
  • Row 2: relative weight assigned to that parameter.
  • Row 3: name of the parameter.
    • Green background means “benefit”
    • Red background means “cost”.
  • Each team will decide on a base-case (usually ETH) and compare each collateral type and assign a value to it for each parameter:
    • null (no data): 0
    • N/A: 0
    • Low: 1
    • Medium: 4
    • High: 9
    • Extreme: 16
  • The Greenlight Score takes into consideration the amount of MKR in each poll and normalizes it between -16 and 16. Assets without a greenlight poll are highlighted yellow and given a default value as if they’d received 0 MKR for or against.
  • the Prioritization Score is calculated by the sum of the products of all the costs * weights are subtracted from the sum of the products of the benefits * weights.

How to maintain the Framework

  • Governance will update the collateral types. These might come from:
    • the forum (MIP6 applications)
    • any domain contributor proposing it for a preliminary evaluation
  • The assigned domain teams / working group will update the values for each parameter.
  • The Prioritization Score will help facilitate the conversations among domain teams when coordinating efforts for onboarding collateral types.

Considerations and Maxims

  • A model is an imperfect representation of reality.
  • Some data is better than no data.
  • The input from each team is subjective and reflects the extent of their current knowledge.
  • The framework is a living document: both the weights and the estimates can and will change.
  • Each domain team retains the authority to choose their own work items, as there are efforts that might provide value that’s not covered by the model. This includes:
    • R&D to scale operations
    • the “Combined” effort for several collateral types
    • working on activities that provide value to the Protocol other than collateral onboarding

Potential Improvements (non-exhaustive)

  • Weight-tweaking to improve the model.
  • New parameters (if needed).
  • Definition of parameters (explanation).
  • Domain teams to draft documents to allow contributors to help and scale the list to more collateral types.
  • Better UI (both for visualization and data entry / modification).
  • Any feedback proposed is more than welcome (comment below or in the spreadsheet).

Signed

Mandated Actors.

7 Likes