Maker Governance Review: August 2021

Top Governance News

The month of August started strong with MKR vote delegation officially up and running. In the span of only one month, the Vote Delegation Portal now holds a total of 7 Recognized Delegates and 6 Shadow Delegates, with over 73,000 MKR delegated! As a result, we may start seeing weekly executive votes have a meaningful increase in MKR participation. In parallel, MakerLabs produced a proof of concept web application displaying information and statistics to provide delegators with a tool to understand how their delegate is performing.

Weekly executive proposals were skipped twice this month and bundled into the following week’s executives in response to an unofficial bi-weekly schedule proposed by the GovAlpha Core Unit. There were no executives on August 13th and August 27th.

Governance-related content expansion continues; Maker Relay sections such as State of Dai & Votes and Polls are now available in video format on MakerDAO’s Youtube channel. August had several AMAs and Meet Your Delegate calls that dig deep into our new delegates’ views on DAO governance and other important topics.

August had three ratification polls; the Dai Foundation Core Unit, the Growth Core Unit MKR Budget Plan, and a Declaration of Intent for Onboarding a Collateral Type Backed by B.Protocol v2, which have all passed.

There were a total of four community greenlight polls. Three have passed, resulting in higher prioritization of the NCP01-DROP, CGFF-DROP, and RWA-120dB Vault types. However, CNC1-DROP did not pass and was thereby deferred.

Key Outcomes

Maker Improvement Proposals

The month of August contained three ratification polls, which all passed:

Ratification Polls:

Ratification Poll Discussion
DAI Foundation Core Unit, DAIF-001 Discussion
Growth Core Unit MKR Budget, GRO-001 (MIP40c3-SP23) Discussion
Declaration of Intent - (MIP13c3-SP11) Discussion

Core Unit Budgets Distribution

The executive vote that passed on August 22nd distributed budgets to 10 Core Units.

August’s Core Unit Budget Distribution:

Core Unit Distribution
Growth (GRO-001) 637,900 DAI
Sustainable Ecosystem Scaling (SES-001) 702,883 DAI
Content Production (MKT-001) 98,067 DAI
GovAlpha (GOV-001) 123,333 DAI
Real World Finance (RWF-001) 155,000 DAI
Risk (RISK-001) 182,000 DAI
Protocol Engineering (PE-001) 510,000 DAI
Oracles (ORA-001) 419,677 DAI
Governance Communications (COM-001) 40,500 DAI
Governance Communications (COM-001) - Continuity 121,500 DAI
Total 2,990,860 DAI

Parameter Changes & Vault Upgrades

Stability Fee Management

  • ETH-B Stability Fee decreased from 6% to 5% with the passing of August’s first executive on August 22nd.
  • MATIC collateral onboarding initial parameters include a stability fee of 3%, see below.

View a detailed breakdown of the rate changes here, published by the Parameter Proposal Group.

Debt Ceiling Management and Optimizations

August Debt Ceiling Management:

Vault Type Previous DC New DC Change
LRC-A 3 million DAI 1 million DAI -2 million DAI
UNIV2ETHUSDT-A 10 million DAI 0 DAI -10 million DAI
UNIV2DAIUSDT-A 10 million DAI 0 DAI -10 million DAI
UNIV2DAIUSDC-A 50 million DAI 250 million DAI +200 million DAI
6s Capital (RWA-001) 1,000 DAI 15 million DAI +14,999 million DAI
PSM-PAX-A Zero DAI 50 million DAI +50 million DAI

Liquidation Ratio Management

August’s second executive vote, which passed on August 25th, resulted in the following reductions to Vault Liquidation Ratios:

ETH-A 150% 145% -5%
WBTC-A 150% 145% -5%
ETH-C 175% 170% -5%
UNIV2DAIETH-A 125% 120% -5%
UNIV2WBTCETH-A 150% 145% -5%
UNIV2UNIETH-A 165% 160% -5%
UNIV2USDCETH-A 125% 120% -5%
UNIV2WBTCDAI-A 125% 120% -5%
YFI-A 175% 165% -10%
LINK-A 175% 165% -10%
RENBTC-A 175% 165% -10%
UNI-A 175% 165% -10%
AAVE-A 175% 165% -10%
BAL-A 175% 165% -10%
COMP-A 175% 165% -10%

View a detailed breakdown of the liquidation ratios here, published by the Risk Core Unit.

New Vaults and Other Facilities

  • Polygon’s MATIC token was onboarded through the MATIC-A vault type.
  • Paxos’s stablecoin (USDP) was onboarded through the PSM-PAX-A facility.

Community Greenlight Polls

Greenlight Polls allow MKR token holders to signal their preferences for collateral types proposed through Collateral Onboarding Applications. Community greenlight polls occur at fixed times each governance cycle, starting on the 1st and 3rd Mondays of the month and run for two full weeks.

The month of August had four Community Greenlight polls:

Asset Date Began Date Ended Voted Yes Voted No Voted Abstain
NCP01-DROP August 16 August 30 81,901.24 MKR (93.93%) 1,525.12 MKR (1.75%) 3,768.53 MKR (4.32%)
CGFF-DROP August 16 August 30 81,661.74 MKR (93.65%) 1,525.12 MKR (1.75%) 4,013.09 MKR (4.60%)
RWA-120dB August 2 August 16 11,822.55 MKR Voting (59.04%) 8,197.18 MKR (40.94%) 4.98 MKR (0.02%)
CNC1-DROP August 16 August 30 35,332.23 MKR Voting (40.52%) 46,403.84 MKR (53.22%) 5,458.82 MKR (6.26%)

Check the progress of all proposed collateral types in the Collateral Status Index.

What’s Ahead?

Here are some things to look forward to for September:

Governance polls to Lower the Flash Mint Fee toll to 0% and Add RWA007 (SolarX) as a new RWA Vault Type both passed on Thursday, September 2nd. They will be included in next week’s executive vote, which will be a bundled executive containing polls that have passed during the previous two weeks.

DUX and the GovAlpha Core Unit are working together on improving the UX of the Maker Voting Portal. Keep an eye out on the forums for potential updates. DUX and Growth Core Unit are also working together to help improve participation in Maker Governance. DSpot and GovAlpha Core Unit are working together to improve the MIPs Portal website by fixing some bugs and updating the selection menu.

MakerLabs continues to improve and update its proof of concept web application by offering more options and analytics on delegate performance. Keep track of their updates here. As delegation finds its feet, delegate compensation emerges as the next important topic for the DAO to work through.

Maker’s Institutional and Long-Term Vaults proposal is now attracting many customers, such as Nexo. Although there has not been an official Vault launch, governance and Core Units have been helping lay down the foundation for potential terms and agreements. These Vault Proposals are being discussed with Deco Protocol and Nexo, and hopefully, a final agreement on terms and conditions will be met very soon. Multiple groups are working on developing a Framework for Institutional and Treasury Vault types. The Risk Core Unit is also working on MATIC Treasury Loan Risk Assessments and Parameter Proposals. Institutional Vaults and Treasury Loans will continue to be an important topic during September.

Another monthly governance cycle is upon us. As usual, Formal Submission for Maker Improvement Proposals begin on the first Monday of the month and close after three days. Check out all the MIP proposals in the request for comments stage, and be sure to leave some feedback! Did you know you can get rewarded with Dai for RFC feedback and other forum activity by Opting-in with SourceCred?


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