Governance and Risk #174 - Thursday, January 13 17:00 UTC

Disclaimer

This communication is provided for information purposes only. The views and opinions expressed in this meeting are those of people involved, and do not reflect the official policy or position of MakerDAO or any of its contributors, Core Units, or affiliates. This communication makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, financial or tax advice. You should consult your own advisers as to those matters. References to any digital assets and the use of finance-related terminology are for illustrative purposes only, and do not constitute any recommendation for any action or an offer to provide investment, financial or other advisory services.

Call Information

The zoom waiting room will be on, and a password is set to: 748478, please ping us in the Maker Discord’s #governance channel if you aren’t let in from the waiting room.

2021-01-13T17:00:00Z

Slides - updated before the call

Introduction

Governance Round-Up

Selected Discussions

Revisiting Dai’s Stablecoin-Backing
Ideas for relieving stablecoin dependence, options being pursued

Multidisciplinary approaches to governance evolution
How can interdisciplinary approaches to governance be incorporated into our medium-term evolutionary planning?
For reference- Research-Driven Insights About DAO Governance

Other Discussions and General Q&A

General Q&A
Ask us stuff.

Open Discussion
List of interests:
D3M spread management
Market making
Altering Community Greenlight Polls process.
Institutional Vault Deals,
Delegate Compensation
Ways we can improve governance
Call attendees to decide. Help us by using the anon question box below :point_down:

Leave your questions in our anonymous question box and we’ll do our best to bring them up during the call.

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G&R #174 Snippet

This snippet includes Governance, MIPs, forum updates, and Core Unit team discussions from the MakerDAO Governance and Risk Call #174.

General Updates

Votes

Executive:

  • First Executive of 2022 tomorrow!
  • Expected contents:
  • Delegate Compensation Payments
  • LP Vault dust Changes
  • Recover DAI from Optimism Escrow

Polls:

  • 5 weekly polls - Passed
    • Prioritize Onboarding a Compound DAI Direct Deposit Module (D3M)
    • Raise the Emergency Shutdown Module (ESM) Threshold
    • Prioritize DAI Direct Deposit Module (D3M) for Maple Finance
    • Increase the Dust Parameter for Select LP Token Vaults
    • Recover DAI Locked in Optimism Escrow
  • There are currently 11 ratifications polls ending January 14th (very soon!)
  • 5 ongoing Greenlight Polls, ending on Monday, Jan 24th.
    • OGN, OUSD, RBLD, TUSD, and USDAP

MIPs

Weekly MIPs Update #69

:calendar: — RFC and FS Dates for reference and existing proposals can be seen here.

Ratification polls for the January Governance Cycle are now entering the first week of the voting. These are the eligible proposals for January/

Forum at a Glance

Forum at a Glance: January 7th - 13th, 2022

Team-led Discussions

DAI’S STABLECOIN BACKING

Ideas on reducing stablecoin dependency for Dai

Steering collateral diversification in preparation for a bear market:

  • Majority of the community supports reducing the amount of USDC-backed Dai
    • Fears of potential blacklisting and its critical affects on Dai and Maker loom very heavily
    • RWAs have been discussed as a medium/long-term direction for collateral diversification
  • How do we diversify RWAs and volatile collaterals and still reduce the risk involved during bear markets?
    • Yes, USDC supply goes up during bear markets, but the overall trend in the amount of Dai supply is up in the long-term. So despite blacklisting, how much does it matter?
    • USDC-backed Dai is good in that it is a stable security buffer against potential crypto bear markets
    • RWA growth can take at least one year before we can safely use them as alternative collaterals in swap of unfavorable stablecoins

Shifting PR regarding USDC-backed Dai

Promoting a positive public sentiment of USDC
from being thought of as a “Dai wrapper” to seeing it as a security buffer:

  • Crypto Twitter sentiment shouldn’t fundamentally affect the work done at Maker
  • Not much support for this; the majority believe it’s best to significantly reduce the amount of USDC we have

MULTIDISCIPLINARY APPROACHES TOWARDS GOVERNANCE EVOLUTION

Ideas for multidisciplinary approaches

Optimizing the governance system:

  • Ideas brought to light:
    • Gasless voting systems
    • Increased incentives for MKR holders to vote
    • Improved user experience for MKR holders when voting
  • Potential issues brought up:
    • Awareness of increased risk via gasless voting for polls such as risk parameters
    • No single decision will make everyone happy; approaches should focus on majority sentiment but still strongly account for members of the DAO
    • There are beginning to be TOO MANY polls for delegates (and MKR holders) to be able to fully understand and then take action to vote
  • There are some ideas/plans by GovAlpha to help scale and improve governance as a whole

Comment reserved for Call Summary

The full call is now available for review on the MakerDAO Youtube channel:

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Excellent work guys :+1: congratulations

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