Maker Relay Ep 19

Hey everyone, thanks for checking out Maker Relay!

Whether you hold Maker (MKR) or DAI, own a vault, or want to get more involved in MakerDAO governance, this is your one-stop-shop for updates on MakerDAO.

Votes

Check our Governance Tools Resource for links to things like: system status, Dai stability, collateral & liquidation metrics, protocol analytics, auctions, and governance history.

Executive Vote

Mitigating Flash Loan Risk (currently has 98,654.35 MKR in support):
If this passes, the following will occur:

  • The GSM Pause Delay will be increased from 12 hours to 72 hours.
    • As per this forum thread, this change is being proposed to allow governance sufficient time to react to a governance attack on the Maker Protocol.
  • The Oracle Freeze Module will be deauthorized.
    • As per this forum thread, this change is being proposed to prevent the freezing of the Oracle price feed by an attacker using flash loans. This change will also prevent Maker Governance from freezing the oracle price feed without waiting for the GSM Pause Delay of 72 hours.
  • The Liquidations Circuit Breaker will be deauthorized.
    • As per this forum thread, this change is being proposed to prevent the freezing or unfreezing of vault liquidations by an attacker using flash loans. This change will also prevent Maker Governance from freezing or unfreezing liquidations without waiting for the GSM Pause Delay of 72 hours.

Governance Polls

Some polls use instant run-off, so you can select multiple options, and ranked-choices will be prioritized.

Poll Name Vote Discussion
Stablecoin Action Plan Vote Discussion
Stability Fee Adjustment Vote Discussion

Debt Ceiling Adjustments

These polls will close on 11/5/2020 at 4 pm UTC

Collateral Adjustment Amount More Info Vote
ETH-A 540M to 490M Signal Request Vote
ETH-B 20M to 10M Signal Request Vote
LINK-A 5M to 10M Signal Request Vote
MANA-A 1M to 250K Signal Request Vote
USDT-A 10M to 2.5M Signal Request Vote
WBTC-A 120M to 160M Signal Request Vote

Last Week

Oct 2020 Governance Bundle was Approved on Oct 27th at 16:52 UTC with 106,198.96 MKR
Included:

Community Greenlight Polls that Passed.

  • yUSD (yyCRV)
  • UNI-V2-USDT-ETH (Uniswap USDT-WETH liquidity tokens)
  • UNI-V2-WBTC-ETH (Uniswap WBTC-WETH liquidity tokens)
  • UNI (Uniswap)
  • KF-DROP (Kickfurther DROP)
  • CRO (Crypto.com Coin)
  • cUSDC (Compound USDC)
  • aUSDC (Aave USDC)

Community Greenlight Polls that did not Pass

  • OST-1 (UPRETS Oosten Fund 1 LP)
  • OMG (OMG Network)
  • CRV (Curve DAO Token)

Signal Requests

Should the Maker Community burn attacking borrowed MKR in the event of a governance attack leading to protocol redeployment?
This signal is to disincentivize large MKR Holders from providing MKR Liquidity on Lending Platforms and AMM Platforms until such a time as the Maker Governance contracts can be replaced with versions that cannot be attacked using flash loans.

Increase the Auction Surplus Buffer by 2m (System Surplus)
Proposing a 2M increase of the Surplus Buffer.

Updates

MIPs

Weekly MIPS Update #19 (Oct 29th)

MIPs put forth for formal submission:

Sub-proposals put forth for formal submission:

Proposals in the Request-For-Comments (RFC) phase include:

Sub-proposals in the RFC phase include:

The Maker Improvement Proposal (MIPs) Framework provides a clear process for Maker governance to change the Protocol as needed.

Learn more about Maker Improvement Proposals (MIPs)

Smart Contracts

  • YFI, BAL delayed to next week due to flash loan mitigation taking priority.
  • Plan to assess UNI-LP tokens, renBTC, check out the prioritization framework.
  • There’s a read-only rocket-channel for collateral onboarding #collateral-onboarding-updates-ext. Anyone can join to get updates, pipeline announcements, and more.

Oracles

  • Deployed BAL and YFI oracles.
  • Assessments for PAXG, AAVE, and GUSD ready to go.
  • Focusing on LP token oracles.

Risk

  • Ongoing work on renBTC, started to focus on UNI-LP tokens.
  • Rate changes: rate working group proposed a change to lower ETH-B Stability Fee from 6% to 4%
  • Signal on stablecoins ended today with Option 3 - Migrate Users to a new Vault Type and has proceeded to a governance vote.

Current Events

New Governance Portal

Last week we introduced the new governance portal and shared one of the new features, Mobile Wallet Deep Linking. We’ll be highlighting an awesome new feature every week.

Executive Hard Hat

The way executive governance currently works, a proposal simply needs more MKR than the current “hat” proposal (usually the most recent proposal to be executed) to pass. The danger comes when too many voters move from the current hat to a new proposal because that lowers the amount of MKR needed to pass something potentially malicious. To guard against this, the new gov portal has a “hard hat” checkbox that allows voters to vote for both the hat and the new proposal at the same time. This helps keep the threshold needed to pass something from getting too low and protects the system.

Flash Loans

Flash Loans and securing the Maker Protocol forum post led to an executive vote, here.

More Information

B Protocols Twitter Response
Medium Article: How to turn $20M into $340M in 15 seconds

Securing Maker Protocol with Nexus Mutual

@Hugh_Karp presented how MakerDAO can benefit from Nexus Mutual. | Forum Thread with more details.

State of the Peg

  • DAI peg dipping below 1.01 repeatedly, again, with the majority of larger trades on Uniswap.

  • 950 million Dai out in the wild.
  • USDC-A is still leading with 405 million.
  • 345 million from ETH-A and 457K from ETH-B.
  • ~ 3.3 million from BAT.
  • Other vault types (KNC, ZRX, MANA, USDT, COMP, LRC) topping one million again.

  • WBTC crossed the 9 figure mark to ~106 million.
  • TUSD at 56 million.

  • PAX-A to 23 million.

  • LRC staying steady
  • The link marines have hit 98% utilization on 4.8 million dai from LINK. There is a vote to increase the Debt Ceiling.

  • Volume at around $145 million this last week.
  • Average VWAP (Volume-Weighted-Average-Price) places Dai at $1.01.

Major shout out to @vishesh for overhauling Makervaults.descipher. Where there are 10 collateralization buckets, a smoother liquidation price graph, and all the collateral types.

  • The largest amount of ETH vault’s collateralization at 180%.

  • Second largest at 280% due to the two largest vaults outstanding (~ 64 million in debt).

  • Between $320 and $318 ETH, the liquidation wall looks like waves from that planet in Interstellar.

  • The newly updated site and more granular buckets shed some light on WBTC, where most debt is “safely” sitting at 190% collateralized.

https://daistats.com/#/ | http://dai.descipher.io/ | https://makerburn.com/#/ | http://makervaults.descipher.io/

Community

Articles

Maker Forum Deep Dai-ve

Twitter

Meetings and Events

MakerDAO Open Calls

Community Call

Community Collateral Onboarding

Governance & Risk

Community Events

Community Highlights

Reference Links

Discuss and debate Maker governance in the Forum and over Maker Chat

Propose technical changes, poll, and vote in the Governance Portal

Learn more about the Maker protocol in our Documentation

Check our Governance Tools Resource for links to things like; system status, Dai stability, collateral/liquidations, protocol analytics, auctions, and some of the history of governance.

Have Feedback?

We value your input! Reply to this post, take our survey, or join us in the Community-Development channel to let us know what you want to see.

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

5 Likes

This topic was automatically closed 7 days after the last reply. New replies are no longer allowed.