Maker Relay Ep 58

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.

:tea: Current Events

:ballot_box: This Week in Governance

:diving_mask: Community Deep Dai-ve

:clipboard: Team Updates

:calendar: Mark your Calendar

:anchor: Useful Links

:studio_microphone: Have Feedback?

:tea: Current Events

Community debates RWA Foundations proposal

Following the Pre-MIP discussion on RWA Foundations @SebVentures has posted MIP58: RWA Foundations to propose how MakerDAO can establish legal entities to manage real-world assets.

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.

Delegates start receiving delegated MKR

The Recognised Delegates who have stepped up to represent MKR holders are beginning to see tokens allocated to their addresses!

Check out each delegate’s voting weight and delegate your MKR using the new Delegates section of the Voting Portal.

Lower Flash Mint Fee to 0% - Signal Request

Following up on the Initial Flash Mint Module Fee Signal Request @hexonaut resurfaces the subject, asking the community whether we should implement 0% Flash Mint Fees.

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.

Risk Team proposes lowering Liquidation Ratios on Existing Vaults to encourage Dai supply growth

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.

State of DAI

  • 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.

ETH-A collateral ratio

  • The largest bucket for ETH-A is 190%. As a rally continues, folks seem keen to stay safe, but not too safe.

ETH-C goes big

  • 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. | |

:ballot_box: This Week in Governance


Weekly MIPs Update #49

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

Active Executive Votes

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:
Core Unit Distribution
Growth 637,900 DAI
Sustainable Ecosystem Scaling 702,883 DAI
Content Production 51,567 DAI
Content Production - Continuity 46,500 DAI
GovAlpha 123,333 DAI
Real World Finance 155,000 DAI
Risk 182,000
Protocol Engineering 510,000 DAI
Oracles 419,677 DAI
Governance Communications 40,500 DAI
Governance Communications - Continuity 121,500 DAI
Total 2,990,860 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 Ilk Registry for RWA vault types.

Active Governance Polls

Name Link Discussion More Info
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

Community Greenlight Polls

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.

Active Signal Requests

[Signal Request] Lower the Flash Mint Fee to 0%
@hexonaut asks the community whether or not we should remove the fee for flash minting to gain market share given the current lack of usage.

:diving_mask: Community Deep Dai-ve

Tweet of the Week

Forum Insight

Check out the latest Forum at a Glance


:clipboard: Team Updates


GovAlpha Weekly Update

  • 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!

Protocol Engineering

Available for next week’s spell:

  • MATIC (OSM & Medianizer now ready).
  • DssVest (Completed FV specs).
  • PAX PSM.
  • 6S broker-dealer address.

Other Priorities:

  • 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.

Maintenance work:

  • 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.
  • Tooling.

L2 updates:

  • 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.


Real-World Finance

  • 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.


Growth Weekly Update

  • 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.

Content Production

Bi-Weekly Update: July 22 to August 4, 2021

Posts and Uploads:



  • 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.

Sustainable Ecosystem Scaling

SES Public Drive

  • 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.

Governance Communication

  • 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.

:calendar: Meetings and Events

Last Week’s Call Recordings

Governance and Risk Call #153
Video | Forum Post

Collateral Onboarding Real-World Assets Call | Nebula Capital Partners Call
Video | Forum

Maker Relay Video Series #004
Current Events
Votes and Polls
State of Dai

Know Your MIP #09 | Declaration of Intent - WBTC-B Collateral Type Backed by B Protocol
Video | Forum

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
  • Join Link | Governance Communications - Fridays 18:00 UTC

Ask Maker Anything

Collateral Onboarding

  • Collateral Onboarding Call #36: CapitalNow Cannabis

Know Your MIPs

:anchor: 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 valuable 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.

:studio_microphone: Have feedback?

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


The Video version of Maker Relay Votes & Polls is live:

The audio version of Maker Relay Votes & Polls is live:

The Video version of Maker Relay State of DAI is now available:

One question, does this not have a newsletter?

sorry, can you clarify what you mean, please?

So, a newsletter is a bulletin that arrives in one’s personal mailbox, either weekly or monthly.

So I was wondering if this Maker Relay has one, because it would be good info to have in the mail of those who are interested.

We do have a substack version!


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