Maker Governance Review: May 2021

Maker Governance Review | May 2021

Top Governance News

We are entering June with a significant update to the Monthly Governance Cycle. The new setup provides a simpler experience for MKR voters, eliminating bundled MIP votes and the three-stage voting process of the past. Instead, each proposal or proposal-set will go through an individual Ratification Poll that runs for two weeks. What happens on week 1 has not changed, the RFC & Formal Submission dates remain the same.

May 2021 had six MIPs accepted along with a bunch of Vault upgrades to Liquidations 2.0 and other parameter changes; As a result of smaller vaults not going to auction fast enough, a flat 300 Dai incentive is now automatically rewarded to anyone triggering or resetting auctions; The KNC-A vault was retired due to lack of profitability; And the USDC-PSM recieved a 1 billion Dai Debt Ceiling expansion, after the previous ceiling of 2 billion was coming close to full utililization.

Twelve Community Greenlit Polls went out during May; all passed with varying amounts of participation.

Key Outcomes

Maker Improvement Proposals

The May 2021 MIPs Bundle vote passed on May 25, 2021, and was executed on May 27, 2021. As a result of the Bundled Vote, the following MIPs were ratified:

MIP Status Change

Visit the MIPs Portal to explore accepted MIPs and ones still in the proposal phase.

Vault and Parameter Changes

The May Cycle also included a number of Executive Votes that changed a few parameters and added many new Vaults to the Liquidations 2.0 framework. This included:

Stability Fees

Handful of changes, with a detailed breakdown here.

Auction Parameters

  • All Vault types’ auction triggering and resetting incentive, called tip, increased from 0 DAI to 300 DAI.

Debt Ceiling Management & Optimizations

  • PSM-USDC-A Maximum Debt Ceiling increased from 2 billion DAI to 3 billion DAI.
  • KNC-A Maximum Debt Ceiling decreased from 5 million DAI to 0 DAI.
  • PAXUSD-A Maximum Debt Ceiling decreased from 100 million DAI to 0 DAI.
  • USDC-B Maximum Debt Ceiling decreased from 30 million DAI to 0 DAI.

Liquidation Ratio Management

  • UNIV2DAIUSDC-A Liquidation Ratio decreased from 110% to 105%

Vaults Upgraded to Liquidations 2.0

  • UNIV2DAIETH-A
  • UNIV2USDCETH-A
  • UNIV2ETHUSDT-A
  • UNIV2WBTCDAI-A
  • UNI-A
  • AAVE-A
  • BAT-A
  • RENBTC-A
  • LRC-A
  • MANA-A
  • COMP-A
  • KNC-A
  • BAL-A
  • ETH-A
  • ETH-B
  • ETH-C
  • WBTC-A

Oracle Whitelisting

Community Greenlight Polls

These polls gauge community sentiment for collateral onboarding. Greenlight Polls allow MKR token holders to signal their preferences for collateral types proposed through Collateral Onboarding Applications. These polls run for two weeks, starting Monday, on the first week, and the third week of each month.

May only had one set of Greenlight Polls that ended on May 31st, with the following results: all 12 tokens passed for inclusion into the Maker Protocol.

Token Name Voted Yes (Greenlight) Voted No (Defer) Voted Abstain
SLP-SNX-ETH 11,930.09 MKR (82.55%) 2,512.08 MKR (17.38%) 9.41 MKR (0.07%)
SLP-SUSHI-ETH 12,749.20 MKR (88.22%) 1,702.38 MKR (11.78%) 0.00 MKR (0%)
SLP-LINK-ETH 14,322,37 MKR (99.85%) 12.01 MKR (0.008%) 9.41 MKR (0.07%)
PA-DROP 10,913.23 MKR (75.52%) 2,791.30 MKR (19.31%) 747.05 MKR (5.17%)
CEL 8,220.62 (56.74%) 5,564.86 MKR (38.41%) 702.10 MKR (4.85%)
SLP-UNI-ETH 12,749.27 MKR (88.22%) 1,702.31 MKR (11.78%) 0.00 MKR (0%)
SLP-COMP-ETH 14,439.50 MKR (99.92%) 12.08 MKR (0.08%) 0.00 MKR (0%)
SLP-YFI-ETH 12,749.27 MKR (88.22%) 1,702.31 MKR (11.78%) 0.00 MKR (0%)
SLP-ETH-USDT 14,439.57 MKR (99.92%) 12.01 MKR (0.08%) 0.00 MKR (0%)
SLP-USDC-ETH 14,437.89 MKR (99.90%) 10.36 MKR (0.07%) 3.38 MKR (0.02%)
SLP-WBTC-ETH 14,427.66 MKR (99.90%) 9.41 MKR (0.07%) 4.51 MKR (0.03%)
SLP-AAVE-ETH 12,549.27 MKR (86.84%) 1,902.31 MKR (13.16%) 0.00 MKR (0%)

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

What’s Ahead?

June is here, and there are some things to watch out for. Formal submissions are open from June 7th to June 9th 4:00 PM UTC. Additionally, the Monthly Governance Cycle begins with an updated schedule of individual two-week Ratification Polls replacing the three rounds of voting for MIPs and subproposals that voters had to do in the past.

The Protocol Engineering Team will be performing an architectural debt cleanup by migrating the remaining collaterals to the Liquidations 2.0 framework. Additionally, that team posted a thread outlining the multichain landscape as they see it, Maker’s unique opportunities and challenges, and a proposed roadmap for community discussion. The Oracle and Protocol Engineering teams will be getting the remainder of LP Vaults onto the Liquidations 2.0 framework.

New Core Units are continuing to be proposed, with four in the current pipeline; Oracles, Governance Communications, Collateral Onboarding, and Strategic Happiness.

Check out all the MIP proposals in June’s Request for Comments stage. MIP statuses can be found by visiting the MIPs Portal.

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.

About Maker Improvement Proposals

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.


@Davidutro and @Artemisios put together this Governance Review!

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