Maker Governance Review: July 2021

Top Governance News

The month of July was very exciting; we had three executive votes, three weekly governance polls, three greenlight polls, and eight ratification polls. Delegation applications and the MKR Holder’s Guide to Delegation have been the talk of the month. There are already several MKR holders who have proposed themselves as Delegates, along with a number of shadow delegates. There was also much discussion and progress regarding Maker Institutional Vaults with the Growth Core Unit leading the way in discussions. In addition, there has been an expansion in calls for the Maker ecosystem; we had three Speaker Series calls along with the first Meet Your Delegate call, which are all posted on YouTube. Check them out!

July contained a total of eight ratification polls. Both budget modifications for Content Production and Growth Core Units, Special Purpose Fund (MIP55), and Governance Communications Core Unit have been ratified and are now active! Unfortunately, the other four ratifications polls did not pass, which included AmaZix Marketing, Strategic Marcomms Core Units, Collateral Engineering Services Core Unit, and Dispute Resolution (MIP52).

Two of three Community Greenlight Polls have passed, which resulted in higher prioritization of the U-DROP and G-UNIv3-DAIUSDC Vault types. The 0xBTC Community Greenlight Poll did not pass. Lastly, MATIC passed and has been added as a new Vault type.

Key Outcomes

Maker Improvement Proposals

The month of July contained eight ratification polls, of which only four have passed. This includes:

Ratification Polls:

Core Unit Budget Modifications

July’s Core Unit Budget Distributions:

Core Unit Distribution
Growth 126,117 DAI
Content Production 44,375 DAI
GovAlpha 273,334 DAI
Real World Finance 115,000 DAI
Risk 182,000 DAI
Protocol Engineering 510,000 DAI
Oracles 419,677 DAI
Oracles - Continuity Reserve 800,000 DAI
Total 2,510,503 DAI

Parameter Changes & Vault Upgrades

Stability Fee Management

Vault Type Previous Rate New Rate Change
ETH-A 3.50% 2.00% -1.50%
ETH-B 9.00% 6.00% -3.00%
ETH-C 1.00% 0.50% -0.50%
WBTC-A 3.50% 2.00% -1.50%
LINK-A 4.00% 1.00% -3.00%
YFI-A 4.00% 1.00% -3.00%
UNI-A 2.00% 1.00% -1.00%
AAVE-A 2.00% 1.00% -1.00%
RENBTC-A 4.00% 2.00% -2.00%
COMP-A 3.00% 1.00% -2.00%
BAL-A 2.00% 1.00% -1.00%
UNIV2DAIETH-A 2.50% 1.50% -1.00%
UNIV2USDCETH-A 3.50% 2.00% -1.50%
UNIV2DAIUSDC-A 0.50% 0.00% -0.50%
UNIV2WBTCETH-A 3.50% 2.00% -1.50%
UNIV2UNIETH-A 4.00% 2.00% -2.00%
UNIV2ETHUSDT-A 4.00% 2.00% -2.00%

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

Debt Ceiling Management and Optimizations

  • NS-DROP Debt Ceiling increased from 5 million DAI to 20 million DAI.

Debt Floor dust Management and Optimizations

  • Debt Floor dust for all vault types excluding PSM-USDC-A, ETH-B, and ETH-C increased from 5,000 to 10,000 DAI.
  • Debt Floor dust for ETH-B vault type increased from 15,000 to 30,000 DAI.

FLAP Auction Management and Optimizations

  • Bid Duration ttl for Surplus FLAP auctions decreased from 60 minutes to 30 minutes.

DC-IAM Management and Optimizations

  • Activated the Debt Ceiling Instant Access Module for PSM-USDC-A vault type with the following parameters:
Parameter New Amount
Maximum Debt Ceiling line 10 billion DAI
Target Available Debt gap 1 billion DAI
Ceiling Increase Cooldown ttl 24 hours

Vault Upgrades

  • MATIC added to the Maker Protocol.

Community Greenlight Polls

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

The month of July had three Community Greenlight polls:

Asset Date Began Date Ended Voted Yes Voted No Voted Abstain
0xBitcoin Neutral Mineable Token July 5th July 19th 112.53 MKR (0.30%) 34,480.93 MKR (93.18%) 2,413.04 MKR (6.52%)
Untangled Finance DROP July 19th August 2nd 29,884.30 MKR (85.43%) 1,538.46 MKR (4.40%) 3,556.72 MKR (10.17%)
G-UNIv3-DAIUSDC July 19th August 2nd 35,048.96 MKR Voting (99.91%) 9.41 MKR Voting (0.03%) 22.41 MKR Voting (0.06%)

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

What’s Ahead?

August is here, and there are some things to look out for.

Delegation has been the talk of the season; expect more MKR holders to propose themselves as Delegators. There is also a brand new delegates page on the MakerDAO Governance Portal, thanks to the dUX team!

August’s first Executive Vote will include the addition of four Centrifuge assets; CF-DROP, HTC-DROP, FFT1-DROP, and P1-DROP, which will be added to the Maker Protocol as new RWA vault types if passed. Additionally, there are polls currently live (at time of posting) to greenlight 120dB Films, increase the UNIV2DAIUSDC-A debt ceiling, and change parameters as proposed by the MakerDAO Open Market Committee.

Check out the Forums because there will be some general Forum improvements concerning tags, which should help refine posts and searches. The Protocol Engineering Team has also proposed a blueprint for Institutional Vaults. If passed, new Vault mechanisms specific to Institutional and Long-term Vaults would be implemented.

Carl Vogel from the Paxos team proposed creating a PAX PSM to extend PAX as a way to diversify DAI collateral. This comes on the heels of community concern around the growth of Dai’s USDC backing, which sits at 60.6% according to Daistats.com. To sweeten the deal, Paxos plans to add DAI to its platform before Q1 of 2022.

Beginning Monday, August 9th at 16:00 UTC, Ratification Polls for formally submitted proposals will go live and run for two weeks until Monday, August 23rd. At the moment, it looks like there will be a couple of Core Units being proposed, as well as B.Protocol’s declaration of intent to create a new vault type that’s integrated with them.

Check out all the MIP proposals in 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?

Resources

Public Google Calendar.
Bookmark or Subscribe to this calendar for Votes and Public Calls.

Forum and Maker Chat.
Discuss and debate MakerDAO.

Participation Tools.
Library of useful links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auction data.

Governance Portal.
Voting dashboard for MKR voters.

Learning Portal | Technical Documentation Portal | MIPs Portal.
Learn more about the Maker protocol.

MIP51: Monthly Governance Cycle | MIP16: Weekly Governance Cycle.
Learn more about the Governance activities that occur during the Monthly and Weekly Governance Cycles.

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