Maker Relay Ep 29

Maker Relay 29

Hey everyone, thanks for checking out Maker Relay!

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.

Votes

Monthly Governance Cycle

This week we have our Executive Vote for the January MIPs Bundle.
This bundle includes previously passed MIPs:

Weekly Governance Cycle

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

Poll Name Vote Discussion Type
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

Last Week

Collateral Onboarding, Debt Ceiling Adjustments, Other Changes

  • 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.

Signal Requests

Adjust ETH-A Debt Ceiling (2021-03)

  • 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.

New vault-type for ETH with a higher LR

  • 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.

Updates

MIPs

Proposals in the Request-For-Comments phase include:

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)

Smart Contracts

  • 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.

Risk

  • 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

Oracles

  • 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.

Current Events

DSR

Lets get DSR above 0% again
- @ultraschuppi began a popular discussion on the forum to discuss ways to increase the DSR above 0%, to help increase demand and interest.

More Information

Reddit Post: Still 0% APY???

OasisDEX

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.

More Information

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.

https://daistats.com/#/ | http://dai.descipher.io/ | https://makerburn.com/#/ | https://www.monitor.simpleid.xyz/dai

Community

Articles

Maker Forum Deep Dai-ve

Tweet of the Week

Meetings and Events

MakerDAO Open Calls

Community Call

  • 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

Community Events

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 system status, Dai stability, and collateral/liquidations, protocol analytics, auctions, and some of the history of governance.

Have Feedback?

We value your input! Please 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.

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