Covid Crash Situation Room

Next Governance and Risk Call

Should be on Thursday, usual time.

Currently Important Threads

Signal Thread: Finishing Flops And Current Executive - Signalling over how and when to unblock the stuck FLOP auctions.

Signal Thread: SCD Shutdown - Discussing and voting on what to do with SCD.

Signal Thread: Do we compensate vault holders that were completely liquidated? - Signalling on whether we should compensate Vault Holders and by how much.

What about Emergency Shutdown - Why Have we Ignored This Mechanism? - Discussing the pros and cons of shutdown and when it ought to be used.

Key Information Sources

https://daistats.com/ - A general set of statistics and values for the Maker Protocol including total system debt.

http://makervaults.descipher.io/ - An visual representation of the liquidation risk at various price points for MCD.

https://defiexplore.com/stats - Shows the current and next oracle prices for ETH and BAT.

https://daiauctions.com/ - Previous and ongoing auctions (all types).

https://auctions.makerdao.com/ - Allows you to bid on FLOP auctions.

http://dai.descipher.io/ - A picture of the current state of the Dai peg over the last week.

https://catflip.co/ - List of current MCD System Parameters, their current values and translations from dainese.

https://pro.coinbase.com/trade/DAI-USDC - I believe this is the most liquid Dai/Stablecoin market (please correct if I’m wrong) for those that want to-the-minute peg info.

https://pro.coinbase.com/trade/ETH-USD - Not sure if this is the most liquid ETH/USD market, but this gives to-the-minute info of the ETH price.


This thread will be used to highlight the governance and risk meetings, the current important discussion threads and the many useful sites, dashboards and whatnot that will be useful to people during the current time.

Feel free to share anything I may have missed.

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Can there be consideration during this call to set up a further governance call seperate and solely to discuss compensation given the overwhelming ongoing discussion regarding this?

Seems to be much supporting evidence that many voices are trying to be heard.

See links for references:

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It can be discussed, but I think it’s unlikely that we will end up with a separate call for this. While it does require discussion, that discussion should take place in a durable medium on the forums.

I’m wary about having a call specifically for Vault Holders to air their grievances (which is what I believe such a call would turn into.) I think it’s fairly likely that such a call would end badly.

Realistically what we need to make a decision on this is a verifiable list of losses (that I’ve described elsewhere.) By verifiable I mean that someone needs to be able to run a script or something to regenerate the data from the block-chain so that we can be sure that it’s accurate and complete. Once we have that we can start having an informed discussion about compensating people.

From what I can tell, your voices are being heard. The discussion has been opened. Is there something specifically about the current response that you are unhappy about?

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now that the flop auctions are well underway and have recovered the lion’s share of the 5MM in bad debt from “black thursday” what are the next few top priorities for the foundation at this point?

I know there is a lot of talk going on concerning compensating people who’s collateral was liquidated, so I assume that is going to be priority #1 for a few weeks. That said, are there other actions being pursued by the foundation at this point? Could we get an idea of what those are?

Basically just looking to get a sense of what is next concerning this event.

I also want to know. It seems that nobody cares about the peg (3.3% off) or sliding market cap anymore.

other causes for concern to me is the current situation with the surplus buffer. Even once we auction off enough maker to bring it out of the red will further steps be taken to give the system more capital reserves?

A detailed writeup on covid crash by Tom Schmidt of Dragonfly

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Another detailed P&L analysis

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I have commented this in another forum post but will paste my answer also here, since you linked P&L analysis I presented in Our Network newsletter and I want to make it clear what it represents.

Those Vault losses I presented are not truly representative for compensation purposes. Vault loss that I calculated also includes a penalty fee and ETH price decrease during auction time for particular vault. For compensation calcs, you need to exclude those two effects plus of course assume how high bids would be during that time.

Finding a decent benchmark to compare to is going to involve a lot of bias though, because we haven’t had such high liquidation volume event in the past, accompanied by lowest DAI liquidity and highest ETH volatility seen during Maker existence.

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