Maker Relay Ep 53

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Votes

Active Executive Votes

Rates Changes, July Core Unit Budgets, and PSM DC-IAM

If this executive proposal passes, the following changes will occur:

Instant Access Module:

The Debt Ceiling Instant Access Module for the PSM-USDC-A vault type will be activated with the following parameters:

  • Maximum Debt Ceiling (line) = 10 billion DAI.
  • Target Available Debt (gap) = 1 billion DAI.
  • Ceiling Increase Cooldown (ttl) = 24 hours.

Core Unit Budget Distributions - July:

Core Unit Distribution Amount
Growth (GRO-001) 126,117 DAI
Content Production (MKT-001) 44,375 DAI
GovAlpha (GOV-001) 273,334 DAI
Real World Finance (RWF-001) 155,000 DAI
Risk (RISK-001) 182,000 DAI
Protocol Engineering (PE-001) 510,000 DAI
Oracles (ORA-001) 419,677 DAI
Oracles (ORA-001) - Continuity Reserve 800,000 DAI
Total 2,510,503 DAI

Stability Fee Decreases:

Vault Type Current Rate Proposed Rate Change
ETH-A 3.50% 2.00% -1.50%
ETH-B 9.00% 6.00% -3.00%
ETH-C 1.00% 0.50% -0.50%
WBTC-A 3.50% 2.00% -1.50%
LINK-A 4.00% 1.00% -3.00%
YFI-A 4.00% 1.00% -3.00%
UNI-A 2.00% 1.00% -1.00%
AAVE-A 2.00% 1.00% -1.00%
RENBTC-A 4.00% 2.00% -2.00%
COMP-A 3.00% 1.00% -2.00%
BAL-A 2.00% 1.00% -1.00%
UNIV2DAIETH-A 2.50% 1.50% -1.00%
UNIV2USDCETH-A 3.50% 2.00% -1.50%
UNIV2DAIUSDC-A 0.50% 0.00% -0.50%
UNIV2WBTCETH-A 3.50% 2.00% -1.50%
UNIV2UNIETH-A 4.00% 2.00% -2.00%
UNIV2ETHUSDT-A 4.00% 2.00% -2.00%

Active Governance Polls

Poll Name Vote Discussion More Information
Adjust FLAP Auction Parameters Vote Discussion N/A
Increase the RWA-02 (NS-DROP) Debt Ceiling Vote Discussion N/A
Add MATIC as a new Vault Type Vote Proposal Risk CU Evaluation, Protocol Engineering CU Evaluation, Oracles CU Evaluation
Ratification Poll for Collateral Engineering Services, CES-001 Vote Adding Collateral Engineering Services CU Modify CES CU Budget, Facilitator Onboarding, CES CU
Ratification Poll for Governance Communications Core Unit, COM-001 Vote Adding Governance Communications CU Modify GovComm CU Budget, Facilitator Onboarding, GovComm CU
Ratification Poll for Growth Core Unit Budget, GRO-001 Vote Discussion N/A
Ratification Poll for Strategic Marcomms Core Unit Vote Adding Strategic Marcomms CU Add Strategic Marcomms CU Budget, Facilitator Onboarding, Strategic Marcomms CU
Ratification Poll for Special Purpose Fund (MIP55) Vote Discussion N/A
Ratification Poll for Dispute Resolution (MIP52) Vote Discussion N/A
Ratification Poll for Modifying the Content Production Core Unit Budget, MKT-001 Vote Discussion N/A
Ratification Poll for Adding AmaZix Marketing Core Unit Vote Adding AmaZix Marketing CU Adding AmaZix Marketing CU Budget, Facilitator Onboarding, AmaZix Marketing CU

Community Greenlight Polls

This poll will end July 19, 16:00 UTC

Collateral MIP9 Poll MIP6 Application
0xBTC (0xBitcoin Neutral Mineable Token) Vote Application

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

Active Signal Requests

Repeal “Parameter Changes Proposal - MakerDAO Open Market Committee - June 28, 2021”
@PaperImperium is signaling a poll to repeal a set of paramater changes that were proposed which significantly reduces the cash flow of MakerDAO.

Aave D3M Target Borrow Rate
@hexonaut is running a two-question signal poll in preparation for the launch of Aave D3M to gauge how the community wants to set the rates in relation to Maker’s own rates.

Increase Debt Ceiling of RWA-02 (NS-DROP) from 5M to 20M
@prankstr25 of the New Silver team is signaling for support of a Debt Ceiling raise for the RWA-02 (NS-DROP) vault type

Last Week

We skipped last week’s weekly executive.

Team Updates

GovAlpha

Protocol Engineering

Oracles

  • @NikKunkel responded to an accusation on twitter that resulted in a follow up from the accuser.
  • Began shipping the LibP2P integration to the Kovan testnet. Scuttlebutt was previously a centralized point of failure. Now we have both operating in parallel. Feeds will push prices to both networks, and relayers can pull from both. Roll out will last two weeks.
  • Oracle CU is finalizing the relationship with the payroll processor for setting up entities for the CU. Looking into the hiring process and filtering through candidates.
  • Hoping to be fully operational by the end of the month.

Risk

  • Risk assessment for MATIC, which compares various sides of risk.
  • The team is planning future collateral risk assessments that have been backlogged.

Real-World Finance

Growth

  • Growth Core Unit Weekly Update for July 2 - July 8.
  • Find June’s PnL for Maker Growth inside the weekly update.
  • Speaking with Thorchain about integrating Dai. Discussing various solutions and options available to implement this, which will contain an extended analysis posted soon.
  • Now part of the Enterprise Ethereum Alliance (EEA). We will use this channel to communicate about what MakerDAO is doing.
  • Marble cards Arena will launch this week, which converts your favorite forum post or executive vote into an NFT and play with it.
  • Published the Growth Core Unit MKR Budget, which is currently in RFC.

Content Production

Sustainable Ecosystem Scaling

  • Recently met to discuss strategies and roadmaps for the SES CU.
  • Lenkla presenting project X-Ray, which can be found in their public drive.
    Some team members will be attending the EthCC event with the Growth CU in Paris on July 23rd.
  • Helping the DAI Foundation with writing and publishing of MIPs regarding IP management.

Current Events

Parameter Proposals, how fast is too fast?

Last month, we saw a request from the community to speed up the parameter proposal process that had a healthy amount of support. As a result, our governance facilitators decided to expedite this month’s proposed rate changes. However, some thought that we moved too fast, since the rate changes dramatically affect MakerDAO’s cashflow and because there was not enough time for community feedback. Longforwisdom articulates his reasoning for expediting the changes. This brings to the forefront the issue of bundling multiple changes together in single Executive Votes as the DAO continues to refine the governance process. A possible remedy, of course, being the coming governance contract redesign.

Community Exploring PSM Alternatives

To address the protocol’s growing USDC exposure, Sam started a signal request and conversation about creating a high-leverage Vault using Gelato Network’s tokenized Dai<>USDC fixed-range UNI v3 position, called G-UNI. G-UNI can generate yield while being used as collateral; Sam believes such a vault could attract a couple of billion in TVL, which will indirectly unwind the PSM as minted DAI is sold for USDC.

New MKR Compensation Guidelines Published

Last month, Planet_X withdrew MIP53: The MKR Compensation Guidelines on behalf of the working group, citing a need to develop the proposal further. Following up, Aes and LongForWisdom published the Alternative MKR Compensation Guidelines which use a different approach focusing on domain groupings and revising the initial distributions based on them. In the meantime, some Core Units have already moved forward with budget proposals containing MKR compensation package details; see ORA’s SP15, SES’s SP17,.

MIPs

Weekly MIPS Update #44

  • Formal Submissions are complete, and Ratification Polls are up; go Vote!

State of DAI

  • Slight spike in the DAI peg on July 7th. This jump corresponds with a downturn in ETH specifically (~8.5%) and crypto-asset markets generally.

  • For centralized exchanges, a peak of 405 million and a trough of 217 million.

ETH had a 5% drawdown in the past two days, but the peg held stable. The initial shocks in the market after a sideways trend seem to be a little stronger.

  • Uniswap V3 7-day volume of $568.65m with peak volume of 103 million on July 8.

  • Sushiswap peak volume of 30 million.

DAI in lending

  • Compound, Yearn, and AAVE lead for DAI deposits in lending protocols.

  • TVL in Maker is 9.3 Billion with 5.4 Billion DAI outstanding.

  • PSM USDC 3 billion
    • ETH-A 1.4 billion
    • USDC-A 238 million
    • WBTC 214 million
    • ETH-C 165 million
    • PAX 67 million
    • ETH-B 33 million
    • LINK 33 million
    • TUSD 26 million
    • UniV2DaiEth 23 million
    • YFI 11 million
    • UniV2WBTCEth 7.8 million
    • UniV2UniEth 6.9 million
    • UniV2DaiUSDC 5.1 million
    • UniV2UsdcEth 4.9 million
    • NSDROP 4.7 Million
    • UNI 3 million
    • renBTC 2.7 million
    • BAT 1.7 million
    • ZRX 1.5 million
    • MANA 1.4 million
    • AAVE 1.2 million
  • Other vaults below 500K (LRC, BAL, GUSD, KNC, USDT, UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, UniV2DaiUsdt, UniV2EthUsdt, COMP) at 1.2 million.

  • As you can guess from the volume and price section above, ETH volatility is rising.

  • Despite drawdowns, only one auction settled for 11K in debt. In the past two months, it’s one of three auctions that settled outside ~40 minutes (completing in 67 minutes)

  • Liquidation Walls get steep in a 10% drawdown range. Mostly this steep wall ties to ETH A & B.

ETH A buckets

  • ETH-A buckets have 540 million at 170% collateralized.

ETH B Buckets

  • ETH B similar with a larger share close to minimum collateralization.

daistats.com | makerburn.com | maker.blockanalitica.com

Community

Tweet of the Week

Articles

Maker Forum Deep Dai-ve

Check out the latest Forum at a Glance

Last Week’s Call Recordings

Governance and Risk Call #149
Video | Forum Post

AMA Ep. 04: Collateral Engineering with Robert Jordan @monkey.irish
Video | Forum Post

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

  • Speaker Series #2 – Duke University Fuqua Business School Professor Campbell Harvey

Ask Me Anything

  • AMA Ep. 05: Governance Communications with David Utrobin @Davidutro

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 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.

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 not serve as financial advice or an inducement to vote in any specific way. This update is purely for information and communication purposes only.

13 Likes

the shortest and simplest way to keep up to date with the most important DeFi protocol

4 Likes

Look at you with the new tag line ideas.

4 Likes

Hi Tim! What is the price of this ETH Wall? Is it 1800DAI? I can’t tell by looking at the chart.

1 Like

Yay feedback!

The trading view image was posted when ETH was at around 2K DAI. IIRC it would have to go towards 1800 to start climbing the liquidations wall (another 10% at time of
writing). What we’ve seen historically is a lot of rebalancing before that point.

Here we were thinking a percentage chart would be clearer. 🤦 I’ll add price too next time.

3 Likes

I think you used to do percentage charts, right? Sort of remember that.

Also, what about adding a Popular Posts Segment like this:

2 Likes

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