Maker Relay Ep 42

Maker Relay 42

Hi 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 MakerDAO updates.


Executive Votes

MIPs Bundle

If passed, the following MIPs and Subproposals will be officially accepted:

Governance Polls

Liquidations 2.0 Polls

Poll Name Vote Discussion
Add ETH-C to Liquidations 2.0 Framework Vote Discussion
Add WBTC-A to Liquidations 2.0 Framework Vote Discussion
Add ETH-A to Liquidations 2.0 Framework Vote Discussion
Add ETH-B to Liquidations 2.0 Framework Vote Discussion

Community Greenlight Polls

The greenlight polls will close on May 3 at 16:00 UTC.

Collateral MIP9 Poll MIP6 Application
MCO2 (Moss Carbon Credit) Vote Application
rETH (Rocket Pool Staked ETH) Vote Application
1INCH (1inch Liquidity Protocol) Vote Application
bBadger (Badger Sett Badger) Vote Application
SLP-DAI-USDC (Sushiswap DAI-USDC LP Token) Vote Application
UNI-V2-DAI-PAX (Uniswap V2 DAI-PAX LP Token) Vote Application
UNI-V2-GUSD-DAI (Uniswap V2 GUSD-DAI LP Token) Vote Application

Check out an 'at-a-glance view of the current Vault types and their parameters on MakerBurn

Active Signal Request Forum Polls

Adjust Liquidation Ratio for UNI-V2-DAI-USDC-A Vault Type
This poll will run until Monday, April 26. If most forum voters (excluding abstain voters) support changing the UNI-V2-DAI-USDC liquidation ratio, I’ll follow up with an on-chain governance poll for the selected parameter update.

Last Week’s Executive Vote

System Surplus Buffer Increase and Burn, Parameter Changes, YFI-A Addition to Liquidations 2.0
Passed on Apr 26, 2021, 22:06 UTC :eyes:

  • The System Surplus Buffer will be increased from 30MM to 60MM over a period of 99 days, targeting 25% of incoming revenue used to burn MKR.
    • Target 25% of the stability fee revenues to be used in Surplus Auctions to burn MKR. This will be achieved by increasing the System Surplus Buffer over 99 days starting on April 30th using a linear interpolation smart contract (lerp), instead of directly setting it to the target value of 60 million DAI. The 25% target assumes constant fees and no additional revenue over the time period. It should not be viewed as a guarantee of a specific percentage of revenue burn.
  • YFI-A will be added to the Liquidations 2.0 framework.
  • Multiple changes to stability fees and debt ceilings will be made to various vault types

Liquidations 2.0 Contracts, Increase Emergency Shutdown Threshold
Passed on Apr 22, 2021, 01:32 UTC | Executed on Apr 26, 2021, 14:02 UTC

  • Add contract “MCD_DOG” - The liquidation module contract, a full upgrade to the previous cat contract for liquidations.
  • Replace contract “MCD_END” - Contract for executing a shutdown of the protocol.
  • Replace contract “MCD_ESM” - Emergency Shutdown Module contract that enables burning MKR to shut the protocol down.
  • Replace contract “ILK_REGISTRY” - Contract defining the different vault types within the protocol.
  • Add contract “CLIPPER_MOM” - Contract that enables a “circuit breaker” for Liquidations 2.0 if the price of collateral drops too severely.
  • Add contract “MCD_CLIP_LINK_A” - Contract containing the LINK-A auction module.
  • Add contract “MCD_CLIP_CALC_LINK_A” - Contract that contains the Auction Price Function for LINK-A.
  • Remove contract “MCD_FLIP_LINK_A” - The previous contract setting the LINK-A liquidation parameters.



For the latest news on MIPs, check out last week’s MIPs Update #34.

New Submission Highlight

MIP50: Direct Deposit Module

  • @hexonaut proposes the Direct Deposit Module that interfaces with third-party lending protocols to enforce a maximum variable borrow rate for selected assets. Currently looking to integrate with aDAI on Aave.

Learn more about Maker Improvement Proposals (MIPs)

Protocol Engineering



Real-World Assets

Current Events

ESM+End Module Upgrades and Disclosures

The Executive Vote containing the upgrade passed! Feel free to peruse @kurt_barry’s thread explaining the details behind the recent ESM + END Module upgrades. Additional reading:

Liquidations 2.0 is Live!

Liquidations 2.0 is live, with several upcoming votes to implement them onto specific vaults. As the system is entirely new, Risk will be recommending vault types slowly and will likely recommend tweaking the parameters over time. Share your thoughts about the Expected Auction Duration, currently at 40 minutes.

Surplus Increasing

Maker Governance continues to support expanding the surplus buffer, with a raise to 60 million in the pipeline. After several months of explosive Dai growth, and not much Surplus Buffer growth in parallel, MKR voters are making moves.

State of the Peg

  • Highest the peg averaged over the weekend was 1.003.

  • VWAP (Volume-Weighted-Average-Price) places Dai at $1.002
  • Volume hit around $1.1 billion this last week, with sushiswap continuing to nom-nom on volume. Though DAI mostly ends up back on Compound or Curve.

Balances of DAI

  • You can see the DAI parking lots in these top contract balances.

Total Value locked is 10 billion

  • 10 billion TVL!

Maker Dominance

  • Maker dominance has returned to DeFi pulse.

  • 3.6 billion Dai in circulation with interesting changes in PAX, LINK, and COMP.
  • ETH-A 1.9 billion
    • WBTC 334 million
    • USDC-A 240 million
    • PSM USDC 591 million
    • ETH-C 149 million
    • PAX 81 million
    • YFI 70 million
    • LINK 70 million
    • ETH-B 50 million
    • UniV2DaiEth 28 million
    • TUSD 26 million
    • UniV2UsdcEth 22 million
    • UNI 18 million
    • UniV2DaiUSDC 3.9 million
    • UniV2EthUsdtm, V2UniEth, V2WbtcEth, all at 3 million cap.
    • BAT 2.9 million
    • AAVE 2.7 million
    • LRC 2.1 million
    • MANA 2 million
    • renBTC 1.9 million
    • COMP 1.1 million
  • Other vaults below 500K (BAL, GUSD, KNC<>USDT, UniV2LINK<>ETH UniV2AAVE<>ETH, UniV2WbtcDai, UniV2DaiUsdt, COMP) at 1.374 million.

  • ETH-C continues to grow with just barely 774K at the lowest collateralization bucket of 230%.

  • Despite a dominant large vault, the rest of the outstanding debt is pretty diverse.

LINK Big Vaults

  • The largest vault in LINK is also the largest collateralization bucket.

  • Diving deeper on LINK, it’s actually TWO big :whale:s at top. The second-largest vault has riskier collateralization and more recent activity.

  • The largest COMP vault both added 57% more collateral and took out a significant DAI balance. Now it’s sitting at 270%

  • PAXUSD second largest vault took larger growth leaps, especially over the weekend.

  • Global Liquidation Walls are looking a lot less risky; that being said, liquidations start to get intense at 21%. | |



Maker Forum Deep Dai-ve

Check out the latest Forum at a Glance

Tweet of the Week

Meetings and Events

MakerDAO Open Calls

Community Call

Community Collateral Onboarding

Governance & Risk

  • Agenda | Thursdays at 16:00 UTC!

Useful Links

Forum and Maker Chat
Discuss and debate MakerDAO.

Public Calander
Subscribe for all public calls, votes, and other reminders.

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.

MIPs Portal
MIPs Dashboard for everyone.

Learning Portal and Technical Documentation Portal
Learn more about the Maker protocol

Have Feedback?

We value your input! Take our survey to let us know what we might be missing or how we can do better.

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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