Maker Governance Review: June 2021

Top Governance News

The month of June was quite productive! Beyond some usual stuff like budget distributions to 7 Core Units, we also had the final 8 vaults added to the Liquidations 2.0 framework, with stablecoin liquidations all being disabled, maintaining the same case as before. We also saw the launch of the BRAND NEW Dai Flash Mint Module, DssFlash. The Global Debt Ceiling increased by 500 million DAI in order to allow continued usage of the Maker Protocol. An urgent Debt Ceiling adjustment for the PSM-USDC-A from 3 billion DAI to 4 billion DAI was passed. And finally, Payton Rose was onboarded as Governance Facilitator for GovAlpha!

Key Outcomes

Maker Improvement Proposals

There was no bundled MIPs Executive vote during June 2021, and there will no longer be one moving forward due to the new Governance Cycle process passed in May. Instead, the month included 7 Ratification Polls, which all passed:

Parameter Changes & Vault Upgrades

Stability Fee Management

  • UNIV2DAIUSDC-A Stability Fee decreased from 1.0% to 0.5%.

Along with a number of other decreases proposed by the parameter proposal group, view a detailed breakdown here.

Debt Ceiling Management & Optimizations

  • Global Debt Ceiling increased by 500 million DAI.
  • PSM-USDC-A Debt Ceiling increased from 3 billion DAI to 4 billion DAI.
  • ETH-B Debt Ceiling increased from 50 million DAI to 300 million DAI.
  • YFI-A Debt Ceiling increased from 90 million DAI to 130 million DAI.
  • ZRX-A Debt Ceiling decreased from 10 million DAI to 3 million DAI.
  • LRC-A Debt Ceiling decreased from 5 million DAI to 3 million DAI.
  • COMP-A Debt Ceiling decreased from 30 million DAI to 20 million DAI.

Debt Floor Management

  • General Debt Floor increased for all Vault types except PSM-USDC-A, ETH-B, and ETH-C from 5,000 DAI to 10,000 DAI.
  • ETH-B Debt Floor increased from 15,000 DAI to 30,000 DAI.

Liquidation Ratio Management

  • UNIV2DAIUSDC-A Vault Type Liquidation Ratio lowered from 105% to 102%.

Target Available Debt Management

  • ETH-A gap increased from 80 million DAI to 100 million DAI.
  • ETH-B gap increased from 5 million DAI to 10 million DAI.
  • WBTC-A gap increased from 15 million DAI to 30 million DAI.
  • YFI-A gap increased from 5 million DAI to 7 million DAI.
  • UNI-A gap increased from 3 million DAI to 5 million DAI.
  • ZRX-A gap decreased from 1 million DAI to 500 thousand DAI.
  • LRC-A gap decreased from 1 million DAI to 500 thousand DAI.

Local Liquidation Limit Management

  • ETH-A Local Liquidation Limit increased from 22 million DAI to 30 million DAI
  • ETH-B Local Liquidation Limit increased from 8 million DAI to 15 million DAI
  • ETH-C Local Liquidation Limit increased from 5 million DAI to 20 million DAI

Vault Upgrades

As part of the Protocol Engineering Core Unit architectural debt cleanup, stablecoin vaults have been upgraded. Maintaining the case from before, Liquidations have been disabled for all these vaults.

Added to the Liquidations 2.0 framework, though liquidations remain disabled:

  • USDC-A
  • USDC-B
  • TUSD-A
  • PAXUSD-A
  • GUSD-A
  • PSM-USDC-A.
  • UNIV2DAIUSDC-A.
  • USDT-A.

Oracle Whitelisting

Yearn Finance has been added to the following Oracles:

  • UNIUSD
  • LINKUSD
  • AAVEUSD
  • COMPUSD

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 a period of 2 full weeks.

The month of June had four Community Greenlight polls that began June 21st and ended on July 5th:

Asset Voted Yes Voted No Voted Abstain
GNO 35,738.56 MKR (96.45%) 1,303.67 MKR (3.52%) 10.45 MKR (0.03%)
MC-DROP 24,545.14 MKR (68.14%) 9,867.32 MKR (27.39% 1,607.11 MKR (4.46%)
HPT 30,160.01 MKR (83.73%) 4,903.46 (13.61%) 956.16 MKR (2.65%)
MATIC 32,277.46 MKR (89.61%) 2,027.44 MKR (5.63%) 1,714.94 MKR (4.76%)

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

What’s Ahead?

July is here, and there are some things to watch out for;

Voters should be aware of an active Executive Vote that began Friday, July 2nd, and, if passed, will trigger July’s Core Unit budget distributions in addition to a wave of stability fee decreases and activation of the USDC-PSM’s Instant Access Module-Debt Ceiling coupled with a large raise of that debt ceiling to 10 billion.

Formal submissions are open from July 5th to July 7th 4:00 PM UTC; check out eligible proposals below. Submissions will be reviewed on July 8th during the weekly Governance and Risk Call. Heads up to MKR holders who might be out of the loop, we are entering our second month using the new Governance Cycle.

There is currently an active Greenlight Poll for 0xBTC. Keep an eye on the weekly Maker Relay to find out if there will be a second set of greenlight polls later this month.

A new upgrade is coming to the MIPs Portal that includes layout upgrades, bug fixes, improved server infrastructure, and improved user interface.

LongForWisdom and the GovAlpha Team will be submitting templates for Delegation and initiating a “Meet Your Delegates” series of public meetings. In addition, GovAlpha will be posting their first Quarterly Review.

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.


Big thanks to @Davidutro and @Artemisios for helping put together this Governance Review :heart:

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