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This Week in Governance
Community Deep Dai-ve
Mark your Calendar
The Real-World Finance team seeks feedback, notably around how much power the DAO retains when structuring these deals. Several community members have weighed in so far (here and here) and @christiancdpetersen provides more information in Real World Asset Legal Structures - A comparison.
The Recognised Delegates who have stepped up to represent MKR holders are beginning to see tokens allocated to their addresses!
Since the Flash Mint Module is around a month old and still not getting much use, @hexonaut suggests following dYdX and permanently removing Flash Mint Fees helping improve both arbitrage for DAI and front-end UX. Although there is a risk for potential loss of revenue, dYdX has shown its liquidity pool increase from 138k to ~10M, which is large enough to cover most use cases.
MakerDAO has never adjusted the Liquidation Ratios of existing Vaults. This week, Risk presents the first adjustment proposal along with some analysis backing up the recommendation. This proposal comes on the heels of growing USDC dominance in the collateral portfolio as one approach to increase non-USDC Dai supply.
For a quick refresher: the liquidation ratio of each Vault tells you at which point the system will turn around and sell your collateral to pay down your debt. It is effectively the minimum collateral requirement per Vault type. For example, 150% LR means that the Vault owner must uphold a minimum of $1.50 in collateral for each $1.00 of Dai generated, or else the system will sell the collateral and pay down the debt. Adjusting this parameter downward gives Vault users more bandwidth to generate Dai. Unlike adjusting downward, adjusting upward does the opposite and could cause instant liquidation of vault users unaware or unprepared for the change. This proposal only makes downward adjustments.
- Some slight peg slippage on August 8, but the peg quickly recovered back to the baseline we have seen for months.
- It is worth mentioning that the ETH/DAI pair usually has the outsized trades affecting the peg. That pool has the most liquidity concentrated above the peg. This is not particularly a surprise, but it is worth pointing out.
- 6 billion is so so close; we have 12.1 billion in TVL
- Little victories as USDC dips below 60% of Dai generated. Slightly.
- Volume at around $1.9 billion last seven days. Curve is the kingmaker, which means there was more capitulation into other stablecoins. It is almost like something was going on in the market…
- Here is the trading volume chart on DEXs.
- PSM USDC 3.3 billion
- ETH-A 1.5 billion
- USDC-A 238 million
- WBTC 233 million
- ETH-C 219 million
- PAX 67 million
- ETH-B 51 million
- UNIv2DAIUSDC 49 million
- LINK 39 million
- UNIv2DAIETH 28 million
- TUSD 26 million
- YFI 13 million
- UNIv2WBTCETH 10 million
- UNIv2UNIETH 10 million
- UNI 8 million
- NSDROP 6 million
- UNIv2USDCETH 3.5 million
- renBTC 2.8 million
- AAVE 1.9 million
- ZRX 1.8 million
- MANA 1.5 million
- BAT 1.9 million
- LRC 791K
- Other vaults below 500K (GUSD, KNC<>USDT, UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, UniV2DaiUsdt, UniV2EthUsdt, COMP) at 996K.
- Collateral price drops at above 20% would begin significant liquidation walls; it seems that vaults are riding the wave as they used to.
- The largest bucket for ETH-A is 190%. As a rally continues, folks seem keen to stay safe, but not too safe.
- ETH-C largest vaults share increasing.
- ETH-C total debt outstanding jumped from 186-218 million.
- 510% is the biggest bucket for that collateral type.
This week is the last week for Ratification Polls, which will end on Monday, August 23rd.
Visit the MIPs Portal for a more detailed view of MIP statuses
MOMC Proposal, August Core Unit Budgets, Housekeeping - August 6, 2021
If this proposal passes:
- DAI will be distributed to the Core Units as specified within their ratified budget proposals:
|Sustainable Ecosystem Scaling||702,883 DAI|
|Content Production||51,567 DAI|
|Content Production - Continuity||46,500 DAI|
|Real World Finance||155,000 DAI|
|Protocol Engineering||510,000 DAI|
|Governance Communications||40,500 DAI|
|Governance Communications - Continuity||121,500 DAI|
- The following parameter changes will occur:
- ETH-B Stability Fee will be decreased from 6% to 5%.
- LRC-A Maximum Debt Ceiling will be decreased from 3 million DAI to 1 million DAI.
- UNIV2ETHUSDT-A Maximum Debt Ceiling will be decreased from 10 million DAI to zero DAI.
- UNIV2DAIUSDT-A Maximum Debt Ceiling will be decreased from 10 million DAI to zero DAI.
- UNIV2DAIUSDC-A Maximum Debt Ceiling will be increased from 50 million DAI to 250 million DAI.
- Protocol Engineering Housekeeping:
- Adding the VoteDelegateFactory contract to the Maker Protocol changelog.
- Fixing the
IlkRegistry for RWA vault types.
|Onboarding PAX Peg Stability Module||Vote||Discussion||More Info|
|Reduce Vault Liquidation Ratios||Vote||Discussion||More Info|
|Ratification Poll for DAI Foundation Core Unit, DAIF-001||Vote||Discussion||More Info|
|Ratification Poll for Declaration of Intent - Onboarding a new collateral type backed by B.Protocol v2 (MIP13c3-SP11)||Vote||Discussion||More Info|
|Ratification Poll for Growth Core Unit MKR Budget, GRO-001||Vote||Discussion||More Info|
|Collateral||MIP9 Poll||MIP6 Application|
|CNC1-DROP (CapitalNow Cannabis DROP)||Vote||Application|
|NCP01-DROP (Nebula Capital Partners DROP)||Vote||Application|
|CGFF-DROP (Cauris Global Fintech Fund DROP)||Vote||Application|
Check out an 'at-a-glance view of the current Vault types and their parameters on MakerBurn.
[Informal Poll] Using the Cayman Foundation to invest in financials assets at scale
- A poll that aims to gauge community interest in diversifying the DAO’s portfolio through Treasury bonds and bills, a Circle investment account, and short-term investment-grade bonds.
Gas and Vault Cost from a User Perspective
- A post by @monet-supply that explores the relationship between gas prices and Vault size.
Centrifuge: An Update on RWA in DeFi
- @spin of the Centrifuge team offers an update on the current landscape of RWA in DeFi.
- #9 | Flatland: Minting Money Out Of Radical Uncertainty
Crypto Bug Bounty Platform Immunefi Forms Security Core Unit, a Contracted Team in Maker Ecosystem
- Article discussing the SES Core Unit and its “incubation” style of growth and team-building.
Peri Finance brings great DeFi investment opportunity with MakerDAO integration.
- A Cointelegraph article talking about the DAO’s collaboration with Peri Finance, spearheaded by the @Growth-Core-Unit.*
- The 3rd Meet Your Delegate Call recording is now up on YouTube.
- Currently have six public delegates.
- Goals: map out the participation and communication tracking of participating delegates.
- Next budget proposal is now up on the forum.
- Working on launching documentation for Governance to launch through the Maker Operational Manual via Gitbook.
- Pablo is now a full MIP editor!
Available for next week’s spell:
- MATIC (OSM & Medianizer now ready).
- DssVest (Completed FV specs).
- PAX PSM.
- 6S broker-dealer address.
- GUNI is an ongoing team review and audit.
- D3M is getting a review from the AAVE Team.
- StETH has an ongoing discussion to determine debt ceilings.
- Changelog updates since previous RWA spells have passed.
- Adding a CalcFactory to improve collateral onboarding.
- Formal Verification proofs/rules for CropJoin.
- Enhancing RWA DC tests in our spells.
- e2e tests for arbitrum.
- Refactor all typescript helpers and reuse them between arbitrum and optimism bridges (in progress).
- MATIC oracle is ready.
- Need to coordinate on a few things concerning PSM.
- Began work for EIP 1559 layers on our software in production.
- Finished deployment of both Gopher and Spyre; need to complete some refactoring work to give additional deployment and configuration options.
- Published Proposed Liquidation Ratio Changes. This is now included on an on-chain poll.
- Marco posted analysis on how Maker Vault users utilize their Dai. About 500MM of ETH-A debt exposure is farmed on Aave and Compound.
- Monet-supply made a post on gas and Vault cost from a user perspective.
- Monet-supply also posted a thread on collateral offboarding. We want to determine aggressiveness for offboarding.
- Looking into the Fixed Rates Vaults proposal by Deco Protocol.
- Submitted proposal on MKR Compensation for the Risk Team.
- Setting up the Cayman Foundation.
- Looking for servicers to answer operators of Cayman Foundation.
- Focusing on SolarX progress.
- Next step for 6S is to work with the community and prepare for an executive.
- @Aes will be joining the RWF Core Unit Team on a full-time basis beginning September and is reaching out to the community for feedback discussing certain priorities and the short-term roadmap of the RWF FP&A team.
- Working with various entities to help create a solution for Institutional Vaults.
- The Institutional and Long-Term Vault proposal is our first step. We will then look into institutions for Dai loans.
- Hoping to use loans as the middleman between Maker and Institutions; Currently speaking with two potential entities.
- Put up a poll for the Paxos PSM.
Posts and Uploads:
- [Maker Relay] Current Events (8/3 - 8/9).
- [Maker Relay] The State of Dai (8/3 - 8/9).
- [Maker Relay] Votes & Polls (8/3 - 8/9).
- Governance and Risk Ep 153 and Ep 154.
- Meet Your Delegate Ep 2 and Ep 3.
- MakerDAO Financial Report | July 2021.
- Produced Maker Relay Ep 57.
- Also on Substack: Ep 57 and 58.
- Produced Dai on Different Networks #6.
- The State of Dai on Substack: #1.
- Working on scripts for Explainer Videos.
- Updated Notion page to show responses to issues and questions.
- Created a forecasting template for Dogfooding products available in our public drive.
- Created an MKR Compensation template, which is found in our public drive.
- Looking for talent!
- Nebula presented yesterday for RWA and is up on Youtube.
- We are setting up the CU; we still have not gotten the first disbursement or the Payroll setup. But it will happen soon (next 1-2 weeks)
- Hired three additional part-time contributors for Summaries and Snippets.
- Developing a metric system for posts and publications:
- Currently tracking metrics for Maker Relay but will expand to other posts and summaries.
- Developing feedback surveys for posts and publications:
- Currently, a feedback survey is being built for Maker Relay but will expand to others.
- Our office hours are set to Fridays 18:00 - 18:30 UTC and are available on the public calendar.
- We are hiring a full-time Engagement Lead.
- 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
- Join Link | Governance Communications - Fridays 18:00 UTC
Subscribe for all public calls, votes, and other reminders.
Library of valuable links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auctions data.
Voting dashboard for MKR voters.
MIPs Dashboard for everyone.
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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.*