The Flash Mint Module allows any user to execute a flash mint of DAI directly using the Maker Protocol.
As described in MIP25, this is important because it improves market efficiencies for DAI, democratises access to arbitrage opportunities, allows quicker sourcing of capital, and provides an income source for the protocol through fees.
There are two important parameters that Governance will be setting when voting on this module, these are proposed as follows by the Protocol Engineering and Risk Core Units:
max set to 500 million Dai
max restricts the maximum amount of Dai that any function invocation can mint. This number mirrors the exposure already offered by other protocols in DeFi.
toll set to 0.05%
toll is the minting fee each time a transaction is created. This fee will be transferred to the vow at the end of a successful mint and will be a source of revenue for the protocol.
The Flash Mint Module has been internally audited and tested by the Protocol Engineering team. We consider this to be sufficient as the module is a simple implementation with functionality that is well understood across in the DeFi ecosystem.