Maker Relay 29
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Whether you hold MKR or DAI, own a vault, or want to get more involved in MakerDAO governance, this is your one-stop-shop for updates on the MakerDAO ecosystem.
Monthly Governance Cycle
This week we have our Executive Vote for the January MIPs Bundle.
This bundle includes previously passed MIPs:
- MIP29: Peg Stability Module | Discussion
- MIP30: CropJoin - Farmable cUSDC Adaptor | Discussion
- MIP13c3-SP7: Declaration of Intent - Governance Communications Domain | Discussion
- MIP7c3-SP5: Onboarding Sébastien Derivaux to the Risk Domain | Discussion
- MIP7c3-SP6: Onboarding Sam MacPherson to the Smart Contracts Domain | Discussion
- MIP28c7-SP2: Onboarding JuanJuan to the Operational Support Domain | Discussion
Weekly Governance Cycle
Some polls use instant run-off voting, so you can select multiple options, and ranked-choices will be prioritized.
|Add NS-DROP (New Silver DROP)||Vote||Application, Risk Evaluation, Smart Contracts Evaluation, Oracles Evaluation||Collateral Onboarding|
Community Greenlight Polls
The greenlight polls will close on Feb 1 at 16:00 UTC.
|Collateral||MIP9 Poll||MIP6 Application|
|renFIL (RenVM Filecoin)||Vote||Application|
|stETH (LidoDAO Staked Ether)||Vote||Application|
|P1-DROP (Peoples Company DROP)||Vote||Application|
|STAKE (xDAI STAKE)||Vote||Application|
|WFIL (Wrapped Filecoin)||Vote||Application|
|UNI-V2-DAI-WBTC (UniswapV2 DAI-WBTC Liquidity Token)||Vote||Application|
|UNI-V2-DAI-USDC (UniswapV2 DAI-USDC Liquidity Token)||Vote||Application|
|UNI-V2-DAI-USDT (UniswapV2 DAI-USDT Liquidity Token)||Vote||Application|
|UNI-V2-DAI-YFI (UniswapV2 DAI-YFI Liquidty Token)||Vote||Application|
|BPT-50WBTC-50WETH (50% WBTC 50% ETH Balancer Pool Token)||Vote||Application|
Check out an ‘at-a-glance’ view of the current Vault types and their parameters on MakerBurn
- Passed on Jan 25, 2021, 01:02 UTC. Available for execution on Jan 27, 2021, 01:02 UTC.
- UNI-V2-USDC-ETH-A vault type will be added.
- UNI-V2-WBTC-ETH-A vault type will be added.
- LINK-A Debt Ceiling increased from 10 million DAI to 20 million DAI.
- MANA-A Debt Ceiling increased from 250 thousand DAI to 1 million DAI.
- PSM-USDC-A Debt Ceiling increased from 30 million DAI to 80 Million DAI.
- PSM-USDC-A Debt Ceiling increased linearly from 80 million DAI to 500 Million DAI over the next 12 weeks.
- BAT-A Debt Ceiling decreased from 10 million DAI to 2 million DAI.
- TUSD-A Debt Ceiling decreased from 135 million DAI to zero DAI.
- Global System Debt Ceiling decreased by 126,250,000 DAI.
- The dust parameter was increased from 500 DAI to 2000 DAI.
- Instadapp is now whitelisted on the ETHUSD OSM Oracle.
- DAI will be transferred from the Maker Protocol to MakerMan, Monet-Supply, Joshua P, Befitsandpiper, and Vault 2288 for services rendered as the vault compensation working group.
- Since the last urgency exec raising the DC of ETH-A to 1000 MM, almost 65M of DAI-from-ETH-A were created (within 3 days), this is to decide if the community would like to raise the debt ceiling once more.
- Proposes the idea of creating a new vault-type for ETH with a higher Liquidation Ratio, which will highly reduce the risk of the protocol losing money on liquidations, while on the other hand offering lower Stability Fees for people who want to stay heavily overcollateralized.
Check out the community curated Governance Tools Resource for system status links, Dai stability, collateral/liquidations, protocol analytics, auctions, and some of the history of governance.
Proposals in the Request-For-Comments phase include:
MIP26: DssGov - Governance Contract Redesign
- This MIP defines DssGov, a contract replacement for DSChief that comes with improved security, usability, and functionality for holders of the Maker governance token (MKR).
MIP31: Active Reserve AMM (dss-ara)
- A technical proposal for an active reserve based on the Uniswap V2 contract.
MIP32: Peg Stability Module for Compound Mixed Exposure
- Provides an extension for the PSM. The extension allows the PSM to leverage USDC via dai using cdai. It also converts USDC to cUSDC using the same join adaptor (lending join).
MIP34: Keg Streaming Payments Module
- The Keg is a tool for streaming ERC20 DAI to a preset group of addresses from out of the Surplus Buffer.
MIP37: Static Reserve For Governance
- Defines a static reserve that can receive any tokens from anyone as any contract and allows Maker Governance to withdraw them.
MIP38: DAO Primitives State
- DAO Primitives State is a MIP that contains all the status related to Core Units, Budgets, and Facilitators.
MIP39: Core Unit Framework
- Contains a framework for managing Core Units and modifying them in the DAO Primitives State MIP.
MIP40: Budget Framework
- Contains a framework for managing budgets and modifying them in the DAO Primitives State MIP.
MIP41: Facilitator Framework
- Contains a framework with subproposal processes for managing Facilitators and modifying them in the DAO Primitives State MIP.
MIP42: Proposed Compensation Addendum for MakerDAO Contributors
- Proposes to pay contributors partially in time-locked MKR to increase value returned to contributors and directly align their interests with those of MakerDAO.
MIP43: Term Lending Module (TLM)
- Proposes an integration with Yield Protocol. Authors Allan and Alberto are employees of Yield, Inc., a company working to build Yield Protocol. Lev is an advisor to Yield, Inc.
Sub-Proposals in the Request-For-Comments phase include:
MIP13c3-SP9: Onboarding a new collateral type backed by B.Protocol (Declaration of Intent)
- An experiment is proposed for a native integration between B.Protocol and the MakerDAO system, by on-boarding a new collateral type, namely WBTC-B or ETH-C, with lower CR than WBTC-A or ETH-B (respectively), which will be natively backed by a strong commitment from B.Protocol backstop.
MIP4c2-SP10: MIP0 Amendments
- Proposes edits to MIP0 that make it compatible with the newly proposed Domain Framework MIP set. The main difference is that it removes the inbuilt functionality of MIP0 to onboard core personnel. Instead, it uses the DAO Primitives State to determine who have been onboarded as Governance Facilitators by Maker Governance and then introduces logic that allows Governance Facilitators to designate MIP Editors.
MIP4c2-SP11: MIP5 Amendments
- Proposes edits to MIP5 that make it compatible with the newly proposed Core Unit Operating Model MIP set. The main change is to the Governance Facilitator Emergency Vote process, which directly deals with onboarding and offboarding Facilitators.
MIP4c2-SP12: MIP16 Amendments
- Proposes edits to MIP16 that make it compatible with the newly proposed Core Unit Operating Model MIP set. The main change is to clarify the Governance Powers of Facilitators.
Learn more about Maker Improvement Proposals (MIPs)
- Engaging with auditors for Liquidations 2.0 has been fruitful, squashing bugs with all hands on deck.
- Working with @equivrel on the code for MIP21 (RWA).
- Community executive last week led by @hexonaut Passed.
- Published risk eval for MIP30 Farmable cUSDC Adapter (CropJoin)
- Looking into the different risk parameters for LP tokens desired by the community
- Evaluating the Instant Access Module for Debt Ceilings (IAM-DC) for all vaults and do not feel it will be appropriate for PSMs
- Work with audit firm ABDK has been going well. The audit of the UNI-token LP Oracles is expected to be complete by the end of February.
- Oracle assessment for centrifuge went live here and is currently up for a vote.
- Subproposal to whitelist Instadapp/Gelato Automation contract for ETH/USD Oracle Access
- A little MIP foreshadowing, but a proposal is in the works to remove some of the MIPs processes, especially for whitelisting.
- Oracle team already evaluates these contracts for privacy, so the price can’t get hacked. We’ve also never rejected whitelisting as a community.
- Removing permissions, however, that should not be in Oracle domain authority.
The current OasisDEX contract, 0x794e6e91555438aFc3ccF1c5076A74F42133d08D, expires and will automatically shut down on 04-February-2021 at 12:00 AM UTC (2021-02-04 T12:00:00+00:00).
An upgraded version of OasisDEX – OasisDEX 1.1 – will be deployed before the old contract’s expiration date. OasisDEX 1.1 implements minimal changes that remove any remaining “admin” functions, including the expiration date.
State of the Peg
- DAI peg staying solid at 1.000867. Creeping lower and lower towards that dollar peg.
- Dai supply is at 1.5 billion, and here’s the breakdown:
- ETH-A 851 million
- USDC 389 million
- WBTC 146 million
- ETH-B 49 million
- TUSD 40 million
- PSM-USDC 29 million
- PAX 19 million
- LINK 9.9 million
- UNI 6.4 million
- COMP 6 million
- YFI 5.5 million
- UniV2 (DAI<>ETH) 2.9 million
- LRC 1.4 million
- BAT dropped 70 % to 864K
- Smaller vault types now total 2.4 million! They finally broke through the 1.5 million barriers these last few weeks. (AAVE, BAL, renBTC, MANA, ZRX, KNC, GUSD, USDT, USDC-B)
- Volume at around $1.15 billion this last week.
- Average VWAP (Volume-Weighted-Average-Price) places Dai at $1.001
- Uniswap is dominating contract use with 41.61% of Dai in the V2 router.
- ETH vaults largest collateralization ratio is 290%.
- Despite well-protected vaults, for the most part, the fourth largest vault is at 160%. Stay safe, friends.
- Liquidation of 36 million dai at $1227 ETH.
- COMP vaults have a new large vault, pushing the collateral towards its Debt Ceiling.
- UNI also has a large whale dominating the collateralization ratio.
- Aside from that large position, the top UNI vaults are both safe and diversified.
Value At Risk (VaR)
- In case you’re curious why we bring up liquidations, vault health, the status of Dai in the ecosystem, etc., it’s to help everyone stay focused on risks still facing the protocol. For a deeper view into how risk models this see @andymccal 's presentation from Governance and risk on Maker VaR estimates.
BeInCrypto: DeFi Deep Dive: MakerDAO — ETH’s Longest Running Project
- Diving into the smart contracts, governance, and even some ideas of what 2021 may hold, this dives into MakerDAO, MKR, and Dai.
How does increased demand for DAI impact the price of MKR?
- A question from a Redditor that received good feedback and sparked some interesting conversation.
Maker Forum Deep Dai-ve
- PSM WebApp: A Maker Community Project
MakerDAO Updates on Substack: Snippets in your Inbox!
- You can now subscribe to our Snippets Substack to receive these vital updates directly in your inbox!
Maker VaR estimates presentation
- Includes links to the presentation/zoom call and the conversation following the available information.
Tweet of the Week
Meetings and Events
MakerDAO Open Calls
- Tuesdays 9AM PST | 10AM MST | 12PM EST | 5PM UTC | 6PM CET | Crowdcast
- We will be joined by Seth and Kevin from SourceCred, who will be talking about the new weight changes in the forum.makerdao.com implementation, in addition to an interesting new method of minting Cred based on categories and tags within Discourse that their team hopes to roll out by next month.
Collateral Onboarding Call
- Wednesday, Jan 27 at 18 UTC | 1 PM EST Collateral Onboarding Call with Lido
- The Lido Protocol, built on Ethereum 2.0’s beacon chain, allows users to earn staking rewards on the beacon chain without locking Ether or maintaining staking infrastructure.
Governance & Risk
- Thursdays at 16:00 UTC | Zoom
- Jan 28: Women in Crypto #2: Cryptocurrency in 2021 - The Opportunities and Challenges Ahead
- Feb 4: Crypto NYC: Lend me your Crypto
- Feb 10: Canaccord Digital Assets Virtual Symposium
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 system status, Dai stability, and collateral/liquidations, protocol analytics, auctions, and some of the history of governance.
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.