Know your MIP KYM#07: Declaration of Intent - eurDai - Friday, April 09th 13:00 UTC

What

In the 7th episode of Know Your MIP we’ll be discussing subproposal MIP13c-SP10, the declaration of intent that MakerDao should investigate about and build a subprotocol providing a DAI-like stablecoin pegged to the official currency of the European Union.

You can read some discussion on the topic here.

We look forward to having you there joining @sebVentures, @ultraschuppi, and @juan :heart:

When

April 9, 2021 @ 13:00 UTC

Time in your local-timezone format:
2021-04-09T13:00:00Z

Where

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See you there!

attn: @juan; @amyjung; @charlesstlouis ; @LongForWisdom ; @ElProgreso ; @iammeeoh ; @MakerMan ; @prose11 ; @Deimos ; @g_dip; @marcandu; @ejbarraza; @doo; @befitsandpiper; @hongbiao_li; @dumitru; @davidutro

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Know Your MIP Summary - Episode #07

April 9th, 2021

Agenda

  • 00:00: Intro with Juan Guillén
  • 00:40: Discussion and Questions with Tim Schuppener and Sébastien Derivaux
  • 48:57: Outro

Video

https://youtu.be/jEWc7MgQ8-U

Introduction

Juan Guillén

Agenda and Preamble

00:00

  • Hey everyone! Welcome to Know your MIP edition 7. My name is Juan, I’m joined here by a bunch of people interested in Maker and the European economical system.
  • Today I’m joined by @sebVentures and @ultrasshuppi, both very active members of the forum. They will walk us through the EuroDai Declaration of Intent, which is MIP13 subproposal #10.
  • For other episodes of KYM, please check the forum.

Discussion

Tim Schuppener and Sébastien Derivaux

00:40

Questions

15:15

03:08

  • Juan Guillén: I haven’t seen a lot of compatibilities or a lot of the apps taking these euro-based stablecoins to get interest or yield or whatnot. I don’t know if that is the case or you have investigated a bit and it’s not the case.

11:08

  • Juan Guillén: Can we do an example on the EuroDai protocol? I have ETH or any other asset, I deposit it there, I get EuroDai and I’m not sure how that links to the Eurobond mint.

15:35

  • Payton Prose (chat): What is the financial advantage to having both USD and EURO exposure for Maker?

17:45

  • Juan Guillén: Can you explain why any issuer of a centralized stablecoin would lose money?

19:10

  • Planet-X: Is this universal across the whole European Union or in some selected countries?

19:53

  • Planet-X: This is an excellent opportunity to start investigating EuroDai and if there is not too much demand, in a year or so that could change.

20:56

  • Planet-X: Is it scalable? Can we scale this beyond EuroDai to other currencies? Or perhaps as your slides show there is not much point. What about British pounds? They have a positive interest. Just brainstorming, could it be an idea to have a sandboxing British pounds instead of the EuroDai just because it’s easier?

24:10

  • LongForWisdom: The biggest issue would be holding the peg for these side systems, right?

24:50

  • Juan Guillén: I wonder if there will be arbitrage opportunities with Real Word effects and then the EuroDai and Dai.

27:35

  • Juan Guillén: If this experiment worked really well, potentially the surplus buffer would get filled, and what happens next? Would you start burning MKR or are there any plans with that?

28:11

  • PlanetX: When this system is deployed, how does it work with the different types of collateral? Will it be like ETH, Dai, Vaults or EuroDai Vaults, WBTC? How would that work?

30:27

  • PlanetX: We need to copy the whole collateral system for each currency?

31:10

  • Juank.a: Have you considered stablecoin pegged to a commodity like gold? Or is it only fiat currency discussion?

33:00

  • Juank.a: On one hand, my concern is regulatory. Governments tend to be more suspicious of stablecoins that are pegged to a fiat currency that is used as a legal tender. On the other hand, would it make sense to think about pegging a stablecoin to some asset that preserves the purchasing power?

34:17

  • Juan Guillén: Have you done an analysis where you check out what can be used from the things we have. Potentially, oracles are something relatively easy to upgrade but which kind of smart contracts would need to be rebuilt from scratch because of these needs. So, what can be used and what do we need to do from scratch? What is the effort of this initiative?

35:15

  • Aaron (from chat): What about the emergency shutdowns? Would it be any different from the standard one?

36:31

  • Juan Guillén: Let’s say the Community has a positive response to this proposal and it passes, are there any plans for the next steps?

37:55

  • Planet_X: To me this sounds like an oracle problem more than anything else, is that true?

40:16

  • Alexis: The main problem is Liquidations. If we liquidate, we would need to liquidate against Euro and that is going to be a problem. What I thought about is to liquidate in US dollar.

43:45

  • Sébastien Derivaux: The risk I see is an oracle one. When you set up the transaction between both systems, you need to make sure that the price is correct.

45:25

  • Planet_X: My question is not about the EuroDai but about the marketing of this. Has the Growth team been involved with this at all?

47:45

  • Payton Rose: How big is the team you envisioned needing in terms of bootstrapping EuroDai?

Closing Comment

Juan Guillén

Outro

48:57

  • If there are no more questions, we can continue the discussions in the forum. There are a couple of very interesting topics that Sébastien has started and they are rich in opinions.
  • Any parting comments, Tim or Sébastien?
    • Tim Schuppener: Thank you for all of the questions. You have all overachieved compared to my expectations for this call.
  • Thank you everyone for coming and see you soon!

Credits

  • @gala and @blimpa produced this summary.
  • Everyone who spoke and presented on the call, listed in the headers.
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