Maker Relay Ep 51

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.

Votes

Active Executive Votes

Flash Mint Implementation, Debt Floor Changes
If this proposal passes, the following will occur;

  • The Flash Mint Module will be activated and authorized to flash-mint DAI.
  • The Debt Floor (dust) parameter for all vault types excluding PSM-USDC-A, ETH-B, and ETH-C will be increased from 5,000 DAI to 10,000 DAI.
  • The Debt Floor (dust) parameter for the ETH-B vault type will be increased from 15,000 DAI to 30,000 DAI.

Active Governance Polls

Poll Name Vote Discussion
Parameter Changes Proposal - MakerDAO Open Market Committee Ends 07/01 4pm UTC Discussion

Community Greenlight Polls

Collateral Vote MIP6 Application
GNO (Gnosis) Ends 07/05 4pm UTC MIP6 Application
MATIC (Polygon) Ends 07/05 4pm UTC MIP6 Application
HPT (HuobiPool Token) Ends 07/05 4pm UTC MIP6 Application
MC-DROP (Monachil Capital Partners DROP) Ends 07/05 4pm UTC MIP6 Application

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

Active Signal Requests

Should we delay the governance poll related to adding PAX-GUSD-BUSD to PSM?
Signaling for community support to delay voting on additions to the PSM to get a clearer understanding of what Paxos and other stablecoin PSMs can offer.

Raise SF On RWA When Issuers Unilaterally Change Terms
Based on the discussion around the term changes from New Silver, @PaperImperium is signaling for support to raise Stability Fees 3% when such changes occur.

Adjusting ttl(bid-duration) on flap-auctions
The ttl is the amount of time an auction runs after the last bet, essentially predicting the MKR price in one hour. This signal is asking if this parameter should be reduced within the protocol.

Shorten the PPG process
@alexis is proposing to shorten the timeframe of rates changes by cutting the poll and passing directly to an executive vote.

Last Week

The Friday executive vote last week was delayed after conversations with @Protocol-Engineering and @GovAlpha-Core-Unit. The reasons for doing as are as follows:

  • The only item slated for the spell was Adopting DC-IAM for the PSM-USDC-A.
  • Casting a spell requires quite a bit of labor and resources.
  • The Executive spell from last week still had not passed.

Team Updates

GovAlpha

  • GovAlpha Weekly Update
  • 2 Weekly Polls passed.
  • Skipping this week’s Friday Executive Vote.
  • A couple of new team members being onboarded with some starter tasks.
  • Delegation date solidifying, reach out to GovAlpha if you are considering becoming a delegate.

Protocol Engineering

  • SushiJoin: ensuring correct behavior in the event of ES.
  • CropJoin: gas optimizations and improved manager contract implementation.
  • D3M final round of cleanup.
  • 1-year expiry added to the vote delegation process.
  • Bug with auction demo keeper around gas, causing it to consume max block gas. We worked on a fix for that, PR being merged soon.
  • Kurt put together a document defining magnitude and ranges for PSM-USDC quantities.
  • Worked on risk scenario analysis for Oracle tail risk; it’s not public yet.
  • DSR entity-relationship and system modeling with BlockScience.
  • Considering pivoting to focus on collateral onboarding short-term.
  • Looking into concepts of permissionless versions of institutional Vaults.
  • Working on technical analysis around stETH.
  • Sam is reviewing gUNI as potential collateral.
  • Working on L2 risk framework, a document describing different L2 & scaling solution architectures outlining their risks.
  • Optimism bridge almost fully complete. We are testing it along with things like cross-chain votes.
  • Arbitrum is finalizing their standard bridge; we are working on creating a Dai version of the bridge.
  • Two new team members! Julien Martin and Talbaneth.

Oracles

  • Began production rollout for the gopher tool. It’s a pricing tool that we use to get the prices of assets, and it serves as redundancy for an existing tool that we’ve called sensor.
  • Rolling out a tool called spire within the coming weeks, which adds an extra layer of redundancy similar to scuttlebutt.
  • Finding footing on legal structures.
  • Figuring out staffing, projects, and internal structure.
  • Reviewing oracle code for stETH deployment.

Risk

  • Working on two collateral evaluations: MATIC-POLYGON and stETH, running simulations with reports published soon and available on the dashboard.
  • Risk Dashboard development being worked on addressing labeling for vault owners so that we will have a structure of vault users (if vaults are related, what apps they used to open the vault if they are protected with Defisaver) and so on.
  • We added better charts for CEX trading volume for each collateral asset; in addition to aggregated volume, now there are two more charts; aggregation by exchange and trading pairs.

Real-World Finance

  • Published a post mortem about the notification issue.
  • Begining audits of Centrifuge structure next week.
  • Next Centrifuge batch contains four assets.
  • Christian worked on solutions on the legal side involving Caymen Islands.
  • Three law firms are now working with us in Caymen Islands and internationally.
  • Began creating on-chain data providing more information with Dune Analytics.

Growth

Content Production

  • Content Production Bi-Weekly Update: June 10 - June 24, 2021
  • New hires, including a video producer and writer.
  • Working through our backlog, expect a lot more content from us within the coming weeks.
  • Having conversations with CUs regarding the portal, issues involve Gatsby and Github.
  • Outlining storyboards for educational video requests. Reach out if you have any MakerDAO branding to share.
  • Looking for another writer, so we are still onboarding new team members.
  • Capybara won as the mascot for MakerDAO.

Sustainable Ecosystem Scaling

  • Approaching the initial budget forecast, we may be posting a budget modification soon, increasing our incubation and grants spend.
  • Project’s sandbox discussion with Nikolaj tomorrow in the weekly SES update.
  • Speaking with different CUs to do a side-event in ETHCC.io that Growth CU is leading.
  • Working with the Dai Foundation on a MIP Set.
  • LexMaker series #2 coming soon
  • Call about Liquidations 2.0 coming soon
  • Incubation Side
  • dTalent is helping reach for talent. Get in touch!
  • Development & UX(dUX) core unit will be doing a short demo today.
  • NewSilver Call last Friday. Video on YouTube.
  • Monachil Collateral Call tomorrow.
  • Next Wednesday will have a Launch Pod Session with AmaZix Marketing Core Unit.

Current Events

New Governance Facilitator in Town

The GovAlpha Core Unit welcomes its second active Governance Facilitator, Payton Rose! This comes as no surprise, GovAlpha aims to create sufficient redundancy, representation, and balanced decision-making by aiming to have three active governance facilitators, as stated in their mandate.

Rates Working Group Evolves

The current Rates Working Group wants to form themselves as a Parameter Proposal Group as outlined in MIP46. They would expand coverage to:

RWA: New Silver Incident Report

Sebastien Derivaux, Facilitator of the Real World Finance Core Unit, published a “Post-Mortem” on the New Silver Executive Summary Change detailing exactly what happened, what was learned as a result, and the solutions moving forward.

Maker Improvement Proposals

Weekly MIPS Update #42 is out, and it looks like all of June’s Ratification Votes passed!

State of the Peg

  • DAI peg spiked on the 23rd of June (1.0084) and dipped below peg on the 25th (.998).
  • Volume hit 737 million on June 21st with a low of 329 million as of yesterday (that’s the gray line on that Santiment chart).
  • The market has been whipsawing around significant wicks, and even hardened OG’s are DM-ing exhaustion memes.

  • Peak volume of DAI on Curve was 91 million on 6/21

  • Supply still above 5 billion.
  • USDC PSM now backs 55.5% of the Dai supply.

Some sleek updates to @MakerBurn’s rundown:

  • PSM USDC 2.8 billion
    • ETH-A 1.3 billion
    • WBTC 230 million
    • USDC-A 238 million
    • ETH-C 180 million
    • PAX 67 million
    • LINK 33 million
    • TUSD 26 million
    • ETH-B 25 million
    • UniV2DaiEth 19 million
    • YFI 10 million
    • UniV2WBTCEth 7.8 million
    • UniV2UniEth 6.9 million
    • UniV2UsdcEth 6.7 million
    • UniV2DaiUSDC 5.1 million
    • NSDROP 3.7 Million
    • renBTC 2.5 million
    • UNI 2.3 million
    • BAT 1.7 million
    • ZRX 1.4 million
    • MANA 1.4 million
    • AAVE 1.08 million
  • Other vaults below 500K (GUSD, KNC<>USDT, UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, UniV2DaiUsdt, UniV2EthUsdt, COMP) at 1.37 million.

YFI goes bye bye

  • @banteg stopped on by to explain YFI’s largest vault unwinding. It seems as though there are lots of opportunities to collaborate across the ecosystem on rates.

  • 58 Auctions settled on June 22, mostly on ETH-A positions.

  • ETH-C vaults have been on an upward tear. 273 vaults total with 415% average collateralization (weighted on debt size).

  • 15-20% seems to be the candle du jour, so a 20% drawdown puts ETH-A and WBTC atop the liquidation risks.

Weight vault average

  • WBTC’s weighted collateralization is at 253%

  • The buckets for this ilk are heavily skewed to a safe margin above the min collateralization. Only 378K is at 160%.

  • ETH’s volatility has been at 7% for the past week.

  • ETH-A vaults have ~16 million of debt at or below 180% collateralized.

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

Community

Articles

Forum Deep Dai-ve

Check out the latest Forum at a Glance

Tweet of the Week

Meetings and Events

This Week’s Calls

Governance & Risk

Core Unit Office Hours

  • Join Link | GovAlpha - Mondays 17:00 UTC
  • Join Link | Protocol Engineering - Tuesdays 15:00 UTC
  • Join Link | Content Production - Wednesdays 16:00 UTC
  • Join Link | Growth - Wednesdays 17:00 UTC
  • Join Link | Sustainable Ecosystem Scaling - Tuesdays 15:30 UTC

Speaker Series

  • Senior VP of St. Louis Federal Reserve, David Andolfatto

Core Unit Launch Pod Sessions

  • Core Unit Launch Pod Sessions #13: AmaZix Marketing Core Unit AMZX-001

Ask Me Anything

  • Learn about Centrifuge and Tinlake With Lea, Lucas, and Martin

Last Week’s Call Recordings

Governance and Risk Call #147
Video | Forum Post

Monachil Collateral Onboarding Real-World Assets Call: June 25, 2021
Video | Forum Post

Tokenizing Real-World Assets with CurioInvest | What the World is Doing With Dai Ep 01
Video | Forum Post

Ask Me Anything: Will Remor of MakerDAO’s Real-World Finance Core Unit
Video | Forum Post

Useful Links

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Public Calander
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Participation Tools
Library of useful links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auctions 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.

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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.

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Clarification: the document defines expected magnitude ranges for all MCD quantities and parameters. It can be found in the dss wiki:

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