Maker Governance Review: October 2021

Top Governance News

With four Executive Votes passed and a plethora of new projects launching and gaining traction, October has been an especially productive month for MakerDAO.

The passage of the final Executive of September on October 2nd kicked off the offboarding of several collateral types with USDT and also included Core Unit budget distributions for the month.

The following October 7th Executive ramped up offboarding by finalizing the shutdown of BAT-A, LRC-A, ZRX-A, UNIV2AAVEETH-A, and UNIV2LINKETH-A. This Executive also included more funds for Core Units.

The October 21st Executive onboarded staked ETH (wstETH) as a collateral type and included several parameter changes detailed below in “Parameter Changes & Vault Upgrades.”

And last but certainly not least, the October 28th Executive included the onboarding of the Aave Direct Deposit Module (D3M), along with budget streaming to the Growth Core Unit as well as the newly onboarded Data Insights Core Unit.

It has also been a huge month for many of the projects MakerDAO has been working on:

  • G-UNIV3-DAI-USDC1-A (G-UNI) hit its debt ceiling twice after going live in September; first at its initial debt ceiling of $10m and again only two days after its increase to $50m.
  • The Dai Direct Deposit Module (D3M) launched and is off to a hot start, also reaching its initial debt ceiling in less than 48 hours.
  • Wrapped Staked Ether (WstETH) also saw an explosive launch, scraping up against its initial debt ceiling of $10mil in just over a day.

Vote delegation also saw significant shifts after the former Recognized Delegate, Planet_X, announced an indefinite sabbatical from the DAO. A snapshot of the current Governance landscape can be found in the “Key Outcomes” section below.

Key Outcomes

After the redistribution of the MKR delegated to Planet_X, the current governance landscape is as follows:

Delegate MKR allocated Proportion
Flip Flap Flop LLC 23,903.23 45.31%
Feedback Loops LLC 10,102.26 19.15%
PaperImperium 8,511.07 16.13%
monetsupply 5,139.34 9.74%
MakerMan 5,061.75 9.60%
ultraschuppi 33.00 0.06%

Maker Improvement Proposals

The month of October contained six ratification polls, three of which have passed:

Delegation

PaperImperium Supplemental Compensation

PaperImperium Supplemental Compensation - October 11, 2021

This poll did not pass to support the following changes:

  • Transfering 50,000 DAI to recognized delegate PaperImperium as Supplemental Compensation.
  • Breakdown for intended use of funds.

Recognized Delegate Compensation

Recognised Delegate Compensation Trial - October 25, 2021

This poll passed (with abstain being the popular vote) to support the following changes:

  • Trialing recognized delegate compensation for three months, starting in November as per MIP61.
  • Maximum Compensation Threshold: 10,000 MKR.
  • Maximum Annual Compensation: 48,000 DAI.
  • Exponential Factor: 0.5.

Clean Money Sentiment

Clean Money Sentiment - October 25, 2021

This poll passed to support the general direction laid out in the post ‘The Case for Clean Money.’

Core Unit Budget Distributions

Core Unit Budget Distribution DAI Streaming

DAI streams were set up for the following Core Units:

Core Unit DAI Amount Period
GovAlpha (GOV-001) 538,400 DAI Over 6 months starting 2021-10-01
Starknet Engineering (SNE-001) 135,375 DAI Over 3 months starting 2021-10-01
Strategic Happiness (SH-001) 58,000 DAI Over 3 months starting 2021-10-01
Data Insights Core Unit (DIN-001) 357,000 DAI Over 6 months starting 2021-11-01
Growth Core Unit (GRO-001) 942,663 DAI Over 8 months starting 2021-11-01

Core Unit Budget Immediate DAI Transfers

Immediate DAI distributions were made for the following Core Units:

Core Unit DAI Amount
Development & UX (DUX-001) 483,575 DAI
Sustainable Ecosystem Scaling (SES-001) 307,631 DAI
Strategic Happiness (SH-001) 106,500 DAI
StarkNet Engineering (SNE-001) 75,000 DAI
Collateral Engineering Services Core Unit (CES-001) 1,223,552 DAI
Data Insights Core Unit (DIN-001) 107,500 DAI
Growth Core Unit (GRO-001) 791,138 DAI

Retroactive MKR Distribution

Per the Risk Core Unit’s ratified budget sub proposal, 300 MKR was transferred to RISK-001 following the successful passage of the October 1st Executive vote. This MKR is sourced from the MakerDAO treasury.

MKR Vesting

The following MKR Vesting streams have been established:

Core Unit MKR Amount Period Notes
Risk Core Unit (RISK-001) 700 MKR 2021-04-01 until 2022-04-01 MKR not be claimable until 2022-04-01

Parameter Changes & Vault Upgrades

Stability Fee Changes

There were no proposed Stability Fee changes. The Open Market Committee observed no substantial change in the competitive environment since September.

View a detailed breakdown of the rate change proposal here published by the Parameter Proposal Group.

Debt Ceiling Changes

GUNIV3DAIUSDC1-A Debt Ceiling was increased from 10 million DAI to 50 million DAI.

Several changes to the Debt Ceiling Instant Access Module Parameters of ETH-A, ETH-B, and WBTC-A were made:

Vault Parameter Previous New
ETH-A Target Available Debt (gap) 100 million DAI 150 million DAI
ETH-A Ceiling Increase Cooldown (ttl) 8 hours 6 hours
ETH-B Maximum Debt Ceiling (line) 300 million DAI 500 million DAI
ETH-B Target Available Debt (gap) 10 million DAI 20 million DAI
ETH-B Ceiling Increase Cooldown (ttl) 8 hours 6 hours
WBTC-A Maximum Debt Ceiling (line) 750 million DAI 1.5 billion DAI
WBTC-A Target Available Debt (gap) 30 million DAI 60 million DAI
WBTC-A Ceiling Increase Cooldown (ttl) 8 hours 6 hours

Offboarded Vaults

The following Vaults were offboarded with described parameter changes:

Vault Parameter Previous New
USDT-A Liquidation Penalty (chop) N/A 0%
USDT-A Liquidation Ratio 150% 300%
USDT-A Liquidations Disabled Enabled
BAT-A Liquidation Penalty (chop) N/A 0%
BAT-A Debt Ceiling (line) N/A 0 DAI
BAT-A Liquidation Ratio 150% 800% over 60 days using dss-lerp
LRC-A Liquidation Penalty (chop) N/A 0%
LRC-A Debt Ceiling (line) N/A 0 DAI
LRC-A Liquidation Ratio 175% 2600% over 60 days using dss-lerp
ZRX-A Liquidation Penalty (chop) N/A 0%
ZRX-A Debt Ceiling (line) N/A 0 DAI
ZRX-A Liquidation Ratio 175% 900% over 60 days using dss-lerp
UNIV2AAVEETH-A Liquidation Penalty (chop) N/A 0%
UNIV2AAVEETH-A Debt Ceiling (line) N/A 0 DAI
UNIV2AAVEETH-A Liquidation Ratio 165% 400% over 60 days using dss-lerp
UNIV2LINKETH-A Liquidation Penalty (chop) N/A 0%
UNIV2LINKETH-A Debt Ceiling (line) N/A 0 DAI
UNIV2LINKETH-A Liquidation Ratio 165% 300% over 60 days using dss-lerp

Onboarding Vaults

WSTETH-A was onboarded during the October 22nd Executive with the following parameters shown in this poll.

D3M Onboarding

Aave DAI Direct Deposit Module was onboarded to the Maker Protocol with the parameters below:

Parameter Amount
Maximum Debt Ceiling (line) 10 million DAI
Target Available Debt (gap) 10 million DAI
Ceiling Increase Cooldown (ttl) 12 hours
Target Borrow Rate 4%

Technical Housekeeping

The October 29th Executive proposal added two smart contracts to DssChainLog; LERP_FAB and JOIN_FAB. These smart contracts represent efficiency improvements to the executive spell workflow and directly affect the Maker Protocol.

More information can be found on the forum post here.

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.

The month of August had four Community Greenlight polls:

Asset Date Began Date Ended Voted Yes Voted No Voted Abstain
CurveLP-stETH-ETH October 4 October 18 34,301.72 MKR (54.77%) 0.00 MKR (0.00%) 28,325.95 MKR (45.23%)
Curio Stablecoin October 18 November 1 5,343.20 MKR (7.78%) 28,616.94 Voting (41.69%) 34,679.31 MKR (50.52%)
Security Tokens Refinancing October 18 November 1 108,694.07 MKR (98.22%) 0.00 MKR (0.00%) 1,965.00 MKR (1.78%)
TM2-DROP October 18 November 1 26,184.69 MKR (53.93%) 28,616.94 MKR (41.69%) 5,343.20 MKR (7.78%)

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

What’s Ahead?

As we roll into November, there are a few things to look forward to.

There are Community Greenlight Polls for MD Irradiance LLC and Olympus DAO, which are active until November 15th.

The month of October contained many signal requests; some of them have not yet made it into executive voting, such as launching Nexo Institutional Vault and increasing maximum Delegate compensation to 144k Dai. They will be up for vote soon.

Regarding Delegation, @ultraschuppi arrives into the ring as a Recognized Delegate. Check out Meet Your Delegate #5 with UltraSchuppi. Look out for his addition to the Monthly Delegate Round-up for November.

The Clean Money initiative for MakerDAO received mixed outcomes; The Sagittarius Engine signal request did not pass. However, a sentiment poll for Clean Money did pass. For MakerDAO to continue on the best path forward, there will likely be more polls and votes within the upcoming months to help improve the next steps and objectives.

Finally, there has been much discussion regarding the MIP in RFC for offboarding the current facilitator of the Real World Finance Core Unit. Solutions and next steps are being made to continue with a best-decision approach for MakerDAO and its community. Keep an eye out for future posts on this discussion.

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 | 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.

Disclaimer

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.

4 Likes

Abstain was most voted option, but it did pass.

2 Likes

This is correct, it did pass. Abstain votes should be ignored.

1 Like

Oh wow, really? Thanks for the clarification. Will batch that up really quick.

1 Like

The video version is now available on the MakerDAO Youtube channel for review:

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