Maker Relay Ep 54

Maker Relay #54

Hi everyone, thanks for checking out Maker Relay! Whether you hold MKR or DAI, own a vault, or want to get more involved in governance, this is your one-stop-shop for MakerDAO updates.


Active Executive Votes

FLAP Auction Adjustment and RWA-02 (NS-DROP) Debt Ceiling Increase
If this proposal passes:

Active Governance Polls

Poll Name Vote Discussion More Information
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 Growth Core Unit Budget, GRO-001 Vote Discussion N/A
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 Special Purpose Fund (MIP55) Vote Discussion N/A
Ratification Poll for Dispute Resolution (MIP52) Vote Discussion N/A
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 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

Collateral Vote MIP6 Application
G-UNIv3-DAIUSDC (Gelato UniswapV3 DAI-USDC LP Token) Ends 08/02 16:00 UTC Application
U-DROP (Untangled Finance DROP) Ends 08/02 16:00 UTC Application

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

Last Week

Rates Changes, July Core Unit Budgets, and PSM DC-IAM
Passed on Jul 16, 2021, 17:13 UTC.
Executed on Jul 18, 2021, 17:14 UTC

Because this executive proposal passed, the following changes have occurred:

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%

Team Updates


GovAlpha Weekly Update

Protocol Engineering

Collateral Evaluation

  • Published the Staked ETH Technical Evaluation.

Collateral Onboarding

  • Centrifuge DROP tokens - working to deploy to Kovan first.
  • Mainnet deployment is ready for next week.

Sushi LP tokens

  • Miscommunication with the Sushi team. The pairs we are interested in are not being moved to MasterChefV2 for at least a few months. So we are going to deploy soon with the current version of MasterChef.
  • We’ve therefore updated exchange-callees, ran extra tests, and are making updates to DssCropJoin.

Layer 2

  • Official announcement of the DAI-Optimism-Bridge.
  • Reviewed rely deny contracts ensuring that the bridge is fully decentralized.
  • Next milestones are Arbitrum, Optimism fast withdrawals, and publishing our L2 Risk framework.

Institutional Vaults

  • DssCharter initial implementation: allows administrating a per-vault DC and origination fee.
  • Also wrote a new managed-gem-join to support updated join/exit functions.
  • Next steps: Risk/Growth/PR discussions.


  • No objection to Goerli.
  • Thanks to Schuppi we have 20k goETH.

This Week: EthCC

  • Sam, Derek, Bartek, and Kris will be there!
  • A variety of meetings are planned with StarkWare, Nexo, and others.


  • Migration of oracle feeds to the new LibP2P architecture is ongoing. The rollout is slow because this is a big change. Everything looks good so far. Will be fully transitioned within 2 weeks.
  • Scrutinizing the Dai Fast Withdrawal Bridge. Reviewing and evaluating the trust assumptions and incentives associated with the bridge and how they relate to our Oracle assumptions.
  • L2 oracles are a huge business opportunity. We are asking teams if they would be interested in using Maker Oracles there.
  • Published Collateral onboarding Oracle assessment for MATIC. Will push back on the executive vote until the week of August 6th.
  • Still waiting for the current Executive to pass so that the Oracles Core Unit can receive its initial funding.


  • Published the D3M Risk Assessment. Please, read the report, test the module, and provide feedback.
  • Began focusing more on other stuff in our backlog, such as simulations for lowering LRs.
  • Ongoing work towards proposal around institutional Vaults.

Real-World Finance

Real World Finance Core Unit Report for June

  • Updated budget from @aes is not public on the Forum yet. If onboarding all proposed CU and assuming constant revenues, we will be making a loss but staying cash flow positive.
  • Progress on Real SPV, a model based on Moloch.
  • Meeting on the NewSilver audit today. Giving us a good battle plan to improve and bring securitization of RWA in DeFi at scale.
  • Started on a MIP to formalize the relationship with independent directors of the cayman foundation.


Growth Core Unit Weekly Update

  • Having meetings to speak about plans to offboard Vaults of tokens from various projects such as Brave, Loopring, and Decentraland. Waiting to speak with the 0x team. We are willing to consider other things besides profit, such as valuable PR.
  • In conversation with large institutions regarding using institutional Vaults with Maker.
  • @MarianoDP wrote about the PSM delay update we got from Paxos.
  • @MarianoDP posted potential ideas for future products to grow the Maker protocol.
  • We want access to Paxos APIs by creating a partnership with them.
  • @Nadia Wrote a post about future products or partnerships that we can create through the Maker protocol.
  • @j0sh Wrote a post explaining details regarding a solution for Thorchain and other multichain ecosystem networks.
  • Will be at the EthCC in Paris: Gustav speaking on RWA, and Nadia will be speaking about her experience in the foundation and creating the Growth Core Unit.

Content Production

Sustainable Ecosystem Scaling

  • Working to publish OKRs. It will be ready within the next few weeks.
  • Will be at EthCC Paris. We will be presenting Project X-Ray.
  • SES Core Unit is in RFC. Please provide feedback.
  • Incubees: We have a Core Unit focused on liquidation & auction UIs & services starting up. Nikoli will be giving an update on this next Friday.
  • Podcast with DAOhaus called HausParty now live on Twitter.
  • B.Protocol Declaration of Intent call coming November 8th, 2021.

Current Events

Lower Stability Fees

Acting on the proposal by @SebVentures to lower stability fees and encourage “DeFi Summer 2021,” Maker governance has implemented several rate changes significantly lowering stability fees.

The changes make MakerDAO’s rate more competitive with platforms like Aave and Compound. Rate changes for each collateral type can be seen in the “Voting” section above or on the vote itself.

MakerDAO goes to Paris

The MakerDAO community converges in Paris this week for Ethereum Community Conference 4 (ECC). The conference lasts from July 20-22, but community members will be hosting and attending events throughout the week.

Join the MakerDAO community for Keeping up with the Maker Mafia a free event at Ground Control, Wednesday, July 21.

Delegation Soft Launch Coming August 2nd

GovAlpha has announced that vote delegation will be soft-launching on August 2nd. Delegation reduces the cost of governance and improves efficiency by allowing individuals to delegate their MKR tokens to delegates.

MakerDAO’s delegation system includes Recognized and Shadow Delegates. Recognized Delegates agree to share limited amounts of information about themselves, while Shadow Delegates can participate anonymously.

Executive Vote Correction and Replacement

An error was discovered in the July 16th Executive Proposal and reported to the community on July 17th by community member @spin, who made a post in the #governance-and-risk chat citing the concerns.

Namely, that there was an element missing in the code necessary for MIP21 to allow the Asset Originator (in this case, New Silver) to utilize the increased Debt Ceiling. Within the next 10 hours, this omission in the executive was confirmed, and we deployed a new executive. For more details, read Payton Rose’s write-up.

Mixed Results in Core Unit Ratification Polls So Far

This month four Core Units have formally submitted their proposals and are currently up for a vote. Each has received unique results so far.

  • COM-001 has a 99% positive vote but currently falls ~600 MKR short of the 10,000 positive participation requirement.
  • CPM-001 has a very split vote with ~7,500 for and ~10,000 against.
  • CES-001 also has a split vote, with ~1,200 for and ~16,500 against.
  • AMZX-001 received ~17,700 no votes with only ~43 MKR on yes.

“Taming Wildcat Stablecoins.”

The Federal Reserve, in tandem with the National Bureau of Economic Research, released a paper detailing their current view on stablecoins. In a recent thread, regulatory action was cited as one of the Maker’s primary risk factors. Similar conversations have popped up on r/MakerDao. Since the paper’s release, the discussion has become more focused, and can be followed here or via RocketChat.


Weekly MIPS Update #45

  • Formal Submissions are complete, and we are in the second week of Ratification Polls; go Vote!

State of DAI

  • DAI peg holding to a tight band this last week.

  • Supply is still hovering around 5 and a half billion, with 8.7 billion TVL.

  • Volume in the top five markets (thanks nomics). DEX’s still lead the pack with Uniswap DAI/ETH at 306 million this past week and curve at ~271 million.
  • Sushiswap ETH/DAI 7 day volume at 110 million.

DAI in farms

  • Compound is still the secondary lender of choice for DAI.

  • PSM USDC 3.1 billion
    • ETH-A 1.37 billion
    • USDC-A 238 million
    • WBTC 219 million
    • ETH-C 167 million
    • PAX 67 million
    • LINK 33 million
    • ETH-B 32 million
    • TUSD 26 million
    • UniV2DaiEth 20 million
    • YFI 11 million
    • UniV2DaiUSDC 9.7 million
    • UniV2WBTCEth 7.8 million
    • UniV2UniEth 6.9 million
    • NSDROP 5 Million
    • UniV2UsdcEth 4.4 million
    • UNI 2.7 million
    • renBTC 2.6 million
    • BAT 1.7 million
    • MANA 1.4 million
    • ZRX 1.4 million
    • AAVE 1.2 million
    • LRC 871K
  • Other vaults below 500K (BAL, GUSD, KNC<>USDT, UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, UniV2DaiUsdt, UniV2EthUsdt, COMP) at 880K.

  • ETH A collateralization

  • ETH B collateralization

  • ETH-C and ETH-A vault collateralization ratios seem to be inching towards a safer band since ETH’s price has been wobbling over the past week and through the weekend too. ETH B is still close to the minimum.

Liquidation table

  • A 15% drawdown looks the most painful for ETH and WBTC. But as @ElProgreso helped explore in lask week’s relay, significant rebalancing comes through these smaller price drops over time. It’s the initial market shocks that drop the hardest.

  • WBTC weighted collateralization heading closer to 220% with median debt around 30K.

  • 4 liquidations with 107 DAI debt settled.
  • Dai on Different Chains #2 - July 16, 2021: Dai usage on Polygon has risen from around 418 million DAI to over 567 million, peaking at 652.9 million DAI. The majority is held in two pools: | |


Tweet of the Week


Maker Forum Deep Dai-ve

Check out the latest Forum at a Glance

Last Week’s Call Recordings

Governance and Risk Call #150
Video | Forum Post

Speaker Series #2 – Duke University Fuqua Business School Professor Campbell Harvey
Video | Forum Post

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

Useful Links

Forum and Maker Chat
Discuss and debate MakerDAO.

Public Calendar
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 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.


Zero Knowledge rollup? Yes please.

Governance Polls/Votes Video update is posted!

The audio version is available as well, here;


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