The Maker Governance Review is a monthly recap of all Governance activity, from Governance blog posts and polling/voting history to Governance Cycle progress. Each review is written to keep the Maker community informed of Governance developments.
March was a significant governance cycle for the Maker Protocol, seeing a number of key MIPs get passed along with a number of important changes and additions.
The Core Unit framework was officially ratified, meaning MakerDAO can now engage with independent teams to provide much needed services to the DAO and to compensate those teams. Core Unit teams can propose themselves to MakerDAO for consideration. An enormous step towards the further decentralization of the protocol.
We also saw a number of technical MIPs get ratified, that are now on the road to being implemented. Liquidations 2.0, a redesigned liquidation system that removes capital requirements for auction participants. And there are a number of others listed below.
The March Governance Cycle, which began on March 1 and ended on March 26, summary of changes:
The March 2021 MIPs Executive Vote was posted on Monday, March 22, passed on March 25, and was executed on March 27. As a result of the Bundled Vote the following MIPs were ratified :
- The Core Unit MIP set.
- Core Unit MIP set related amendments.
- The Keg module MIP set.
- MIP43: Term Lending Module.
- MIP45: Liquidations 2.0.
- MIP46: Parameter Proposal Groups.
- MIP47: MakerDAO Multisignature Wallet Management.
This Month’s MIPs Bundle also ratified the following Core Units, including their mandate, budget, and facilitator onboarding proposals:
- RWF-001, Real World Finance Core Unit
- GOV-001, Governance Core Unit
- RISK-001, Risk Core Unit Proposals
Visit the MIPs Tracker to learn more about MIPs and core unites in progress and view MIP statuses.
The March Cycle also included a number of Executive Votes that changed parameters in response to the conditions on Ethereum in addition to adding a couple of new Vaults. This included:
- Many changes, listed here.
Debt Ceiling Management & Optimizations
- The ETH-A Maximum Debt Ceiling increased from 2.5 billion DAI to 15 billion DAI.
- The WBTC-A Maximum Debt Ceiling increased from 350 million DAI to 750 million DAI.
- Debt Ceiling Increases to three UNIV2-LP vaults following successful LP-Oracle audit.
- Instant Access Modules enabled on three UNIV2-LP vaults.
- The ETH-A Target Available Debt (gap) increased from 30 million DAI to 80 million DAI, making Debt Ceiling increases on ETH-A less frequent.
- The Bid Duration (ttl) parameter decreased from 6 hours to 4 hours for all vault types with liquidations enabled.
- The Max Auction Duration (tau) parameter decreased from 6 hours to 4 hours for all vault types with liquidations enabled.
- The Maximum DAI amount that can be out for auction at any given time(box) parameter increased from 15 million DAI to 20 million DAI.
- The Minimum Bid Increment (beg) parameter increased from 3% to 5% for the ETH-B & UniswapV2 Liquidity Pool vault types.
- The Surplus Lot Size (bump) parameter increased from 10,000 DAI to 30,000 DAI, giving surplus auctions larger instances.
Debt Floor Requirements
- These increasing minimum position sizes are due to the growing gas costs involved with liquidating positions.
- The Debt Floor (dust) parameter increased from 2,000 DAI to 5,000 DAI for all vault types with the exception of ETH-B, PSM-USDC-A, and RWA001-A.
- The Debt Floor (dust) parameter increased from 2,000 DAI to 15,000 DAI for the ETH-B vault type.
- ETH-C vault type was added to offer borrowers a facility with a better rate in exchange for a higher collateralization requirement.
- The RWA001-A vault type was added using RWA001 (6s Capital) as collateral with preliminary, non-final parameters for testing purposes with a Debt Ceiling of 1000 Dai.
These polls gauge community sentiment for collateral onboarding. Greenlight Polls allow MKR token holders to signal their preferences for collateral types that have been proposed through Collateral Onboarding Applications. These polls run for a period of two weeks, starting the third week of a given month.
March’s Greenlight Polls ended on March 29th, with the following results:
Nine collateral types were considered, all of them were greenlit by the community.
- aAAVE (Aave AAVE)
- SNX (Synthetix)
- SolarX (Uprets/SolarX REIT)
- aWETH (Aave wETH)
- SB-BFDC (SolidBlock BeachFront Digital Coin)
- CurveLP-cDAI-cUSDC (Curve cDAI-cUSDC Liquidity Token)
- sUSD (Synthetix USD)
- xSUSHI (Sushibar)
- CurveLP-renBTC-WBTC (Curve renBTC-WBTC Liquidity Token)
Check the progress of all proposed collateral types in the Collateral Status Index.
April is ahead, and there are some things to watch out for. Formal submission for April Governance Cycle begins Monday, April 5th, and ends Wednesday, April 7th EOD UTC.
Smart Contracts and Growth Core Units have signalled their intention to formally submit their proposals for the April cycle, while others continue to develop and refine their proposals in the Forums in preparation for their own formal submissions in the months to come.
Implementation of Liquidations 2.0 will begin, with support for the LINK-A vault being the first step to look out for on April 9th’s Executive Vote and YFI-A support tentatively planned for April 18th’s Executive Vote. April 30th’s vote will depend on what is happening during that weekly cycle’s Governance Polls.
With the approval of the Parameter Proposal Groups MIP, we can now expect parameter proposals to come consistently on the first Monday of the month, for inclusion into the weekly cycle in the second week of the month.
Public Google Calendar
Bookmark or Subscribe to this calendar for Votes and Public Calls.
Library of useful links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auction data.
Voting dashboard for MKR voters.
MIPs support the organic growth that further expands MakerDAO’s self-sustainability by providing the Maker community and all stakeholders with a standard approach to proposing improvements, specifications, and process and state changes to the Maker Protocol and MakerDAO.