Maker Governance Review: November 2021

Top Governance News

November has been an exciting month for the DAO, with three new Core Units, four passed Executives and over nine BILLION Dai in circulation.

Be sure to check out LongForWisdom’s post for details on the Holiday Break from Governance.

The November 4th Executive lowered the Fees on Peg Stability Modules PSM-USDP-A and PSM-USDC-A to 0.0%, distributed the Development and UX (DUX) Core Unit’s budget, and included several parameter changes on various vault types.

On November 11th, the Executive included parameter adjustments on the GUNIV3DAIUSDC-A vault and DIRECT-AAVEV2-DAI (Aave Dai Direct Deposit Module or AAVE D3M), increased the debt ceiling on WSTETH-A from 5 to 50 million Dai and returned unused Dai from the GovAlpha Core Unit budget to the Surplus Buffer.

November 18th, the Executive onboarded WBTC-B as a new vault type, increased the Stability Fee on WBTC-A, increased the Local Liquidation Limits on ETH-A, ETH-B, ETH-C, WBTC-A, and WSTETH-A, included a change of the covenant for P1-DROP (People’s Company Series 1), and steps to offboard several different vault types.

Offboarded vaults include BAL-A, COMP-A, AAVE-A, LRC-A, BAT-A, ZRX-A, and UNIV2LINKETH-A. Additionally, a signal request has been posted to offboard MATIC.

Most recently, the November 25th Executive onboarded WBTC-C and the GUSD (Gemini USD) Peg Stability Module (PSM), increased the Surplus Buffer to 90 million Dai, increased the Debt Ceiling on the Aave Dai Direct Deposit Module from 50 to 100 million Dai, and released funds for several Core Unit budgets.

As we mentioned, three new Core Units have been voted into the DAO, bringing the total number of Core Units up to nineteen. Congrats to the new Core Units; you can find them listed with the Ratification Polls below.

Key Outcomes

Maker Improvement Proposals

The month of November contained eight ratification polls, of which have all passed:

Core Unit Budget Distribution

Core Unit Transfer Amount Budget Proposal
DECO-001 465,625 DAI Proposal
DUX-001 359,120.80 DAI Proposal
SAS-001 245,738 DAI Proposal
IS-001 195,443 DAI Proposal
  • This distribution will top-off the DUX-001 Auditors Wallet to the budget cap total of 483,575 DAI
Core Unit Stream Amount Budget Proposal
DECO-001 5,121,875 DAI Proposal
RWF-001 1,860,000 DAI Proposal
SAS-001 1,130,393 DAI Proposal
MKT-001 424,944 DAI Proposal
IS-001 366,563 DAI Proposal
COM-001 257,500 DAI Proposal
COM-001 12,242 DAI Proposal

Budget Return

  • As per this forum thread, 218,059.81 unused DAI from the GovAlpha Core Unit budget was returned to the Surplus Buffer from the PauseProxy contract.
  • This amount comprises budgeted funds unused by the GovAlpha Core Unit.

Parameter Changes

Fee In Management

Vault Parameter Previous New Poll
PSM-USDP-A Fee In 0.10% 0.0% Poll
PSM-USDC-A Fee In 0.20% 0.0% Poll

Maximum Debt Ceiling Management

Vault Parameter Previous New Poll
GUNIV3DAIUSDC-A Maximum Debt Ceiling 50 million DAI 500 million DAI Poll
WSTETH-A Maximum Debt Ceiling 5 million DAI 50 million DAI Poll
DIRECT-AAVEV2-DAI Maximum Debt Ceiling 10 million DAI 50 million DAI Poll
MANA-A Maximum Debt Ceiling 5 million DAI 10 million DAI Poll
MATIC-A Maximum Debt Ceiling 10 million DAI 20 million DAI Poll
UNIV2WBTCETH-A Maximum Debt Ceiling 20 million DAI 50 million DAI Poll

Liquidation Ratio Management

Vault Parameter Previous New Poll
GUNIV3DAIUSDC-A Liquidation Ratio 105% 102% Poll

Stability Fee Management

Vault Parameter Previous New Poll
GUNIV3DAIUSDC-A Stability Fee 1.0% 0.5% Poll
ETH-A Stability Fee 2.0% 2.5% Poll
ETH-B Stability Fee 5.0% 6.0% Poll
WBTC-A Stability Fee 2.0% 2.5% Poll
LINK-A Stability Fee 1.0% 1.5% Poll
RENBTC-A Stability Fee 2.0% 2.5% Poll
USDC-A Stability Fee 0.0% 1.0% Poll
UNIV2WBTCETH-A Stability Fee 2.0% 2.5% Poll
WBTC-A Stability Fee 2.5% 4.0% Poll

View a detailed breakdown of the rate change proposal here published by the MOMC.

Target Available Debt Management

Vault Parameter Previous New Poll
DIRECT-AAVEV2-DAI Target Available Debt 10 million DAI 25 million DAI Poll
MATIC-A Target Available Debt 3 million DAI 20 million DAI Poll

Target Borrow Rate Management

Vault Parameter Previous New Poll
DIRECT-AAVEV2-DAI Target Borrow Rate 4.0% 3.9% Poll

Local Liquidation Limit Management

Vault Parameter Previous New Poll
ETH-A Local Liquidation Limit 40 million DAI 65 million DAI Poll
ETH-B Local Liquidation Limit 25 million DAI 30 million DAI Poll
ETH-C Local Liquidation Limit 30 million DAI 35 million DAI Poll
WBTC-A Local Liquidation Limit 25 million DAI 40 million DAI Poll
WSTETH-A Local Liquidation Limit 3 million DAI 7 million DAI Poll

Offboarding Vaults

The following vaults were offboarded by implementing the following parameter changes:

Vault Parameter Previous New Poll
BAL-A Liquidation Penalty N/A 0% Poll
BAL-A Debt Ceiling N/A 0 DAI Poll
BAL-A Liquidation Ratio 165% 2,300% over 30 days using dss-lerp Poll
COMP-A Liquidation Penalty N/A 0% Poll
COMP-A Debt Ceiling N/A 0 DAI Poll
COMP-A Liquidation Ratio 165% ,2000% over 30 days using dss-lerp Poll
AAVE-A Liquidation Penalty N/A 0% Poll
AAVE-A Debt Ceiling N/A 0 DAI Poll
AAVE-A Liquidation Ratio 165% 2,100% over 30 days using dss-lerp Poll

Updating dss-lerp Liquidation Ratios

Vault Parameter New Poll
LRC-A dss-lerp LR 24,300% over 30 days Poll
BAT-A dss-lerp LR 11,200% over 30 day Poll
ZRX-A dss-lerp LR 5,500% over 30 days Poll
UNIV2LINKETH-A dss-lerp LR 1,600% over 30 days Poll

Vault Upgrades

The following vaults were onboarding during November:

Vault Poll

Covenants Changes for P1-DROP

As per this poll, the following covenant changes to P1-DROP (Peoples Company Series 1) occurred:

  • Increased maximum acquisition price from $1.5 million to $2.85 million.
  • Included Arkansas as a possible state.

Surplus Buffer Increase

As per the successful outcome of this governance poll, the System Surplus Buffer increased from 60 million DAI to 90 million DAI over 30 weeks (1 million DAI per week).

Aave D3M Debt Ceiling Increase

As per the successful outcome of this governance poll, the Aave D3M Maximum Debt Ceiling increased from 50 million DAI to 100 million DAI.

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.

  • There was four community greenlight polls during November, which have passed except for OHM (Olympus DAO):
Asset Date Began Date Ended Voted Yes Voted No Voted Abstain Prioritization Score
Monetalis Wholesale SME Green Growth Lending November 15 November 29 63,518.39 MKR (78.45%) 17,444.45 MKR (21.55%) 0.03 MKR (0.00%) 1.47
MD Irradiance LLC November 1 November 15 42,724.82 MKR (50.31%) 42,194.63 MKR (49.69%) 0.00 MKR -2.40
SolidBlock Red Frog Digital Coin November 15 November 29 42,799.21 MKR (54.12%) 34,914.10 MKR (44.15%) 1,372.54 MKR (1.74%) -3.39
Olympus DAO November 1 November 15 39,246.24 MKR (46.22%) 45,653.17 MKR (53.76%) 20.04 MKR (0.02%) -4.31

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

What’s Ahead?

As per MIP51c4: Calendar Exceptions, there will be no Monthly Governance Cycle in December, i.e., no Formal Submission Window and no Ratification Polls. Check out the Governance schedule for December and January. Standard coverage is set to resume on January 10th.

Provided there is enough content to warrant one, the last Executive vote of the year will begin on December 10th, with the last Governance and Risk call falling on the 16th. Outside of this Executive, no polls are currently scheduled for the tail-end of the governance cycle.

ACREinvest has just announced themselves as a Recognized Delegate. They will present their delegate platform at the Meet Your Delegate call on December 7th. We now have a total of 9 Recognized Delegates and 10 Shadow Delegates.

Governance Communications will soon publish the first monthly Core Unit Updates Review; A ‘one-stop-shop’ to catch up on all Core Unit updates for the month. Next month’s Maker Governance Review will be an Annual Governance Review, covering the entire year of 2021.

That said, be on the lookout for LexMaker #2 - System of a DAO: A Legal Framework for Decentralized Autonomous Organizations, hosted by Miles Jennings of a16z, and David Kerr from Cowrie LLC. The two are set to dissect their published analysis on legal frameworks for DAOs.

The call is scheduled for December 15th at 4:00 PM UTC.

Happy Holidays! :christmas_tree:


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Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does not serve as financial advice or an inducement to vote in any specific way. This update is purely for information and communication purposes only.

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