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This Week in Governance
Community Deep Dai-ve
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In an incredible testament to the skill of our Protocol Engineering team, 63 ETH (~240k USD) mistakenly sent to a non-existent address on Arbitrum have been recovered and returned to their owner. As @hexonaut explains,
“…we can replicate any smart contract address on L2 that has previously been deployed by an L1 EOA. - Luckily, one of the Maker team members still had access to the deployer private key. This would allow us to insert arbitrary smart contract code into the address that the user sent the funds. - Once we have the Proxy deployed at the target address, we can issue a command to send the ETH back to the original user, and voila, we recovered the ETH!”
Read the full story on Twitter.
In light of recent developments, Recognized Delegates @PaperImperium and @Planet_X are reconsidering their commitment to MakerDAO. In response to the failure of his Supplemental Compensation Proposal, PaperImperium has notified the community of his intention to take an offer with another organization. In addition, Planet_X announced he would be taking an extended sabbatical.
While we are disappointed to see community members leave or reduce their commitment to the DAO, the Maker Relay team wishes them the best of luck in their endeavors.
Indexed Finance suffered a $16 million hack last week from two pools, including 516 MKR tokens. According to the project, the hacker has been identified, and the team is reassessing how to handle the situation due to the hacker being “significantly younger than we thought.”
Indexed Finance is a DeFi protocol offering Index Pools, lending, and staking.
- Dai saw some slippage as the markets broke out, mainly trading in the range of 1.02-.98.
- Max range (1.06 - 0.91) hit on the 15th as finishing out the trading week with a market rally led to rushing for liquidity.
- 206 million Dai minted just on the 15th.
- Digging into the 15th more, a wild day of Dai trading across all the major DEXs on mainnet.
- We got over 7 billion in total supply, and TVL launched to just under the 15 billion mark. USDC number continues to go down.
- Volume at around $1.1 billion this last week.
- Average VWAP (Volume-Weighted-Average-Price) places Dai at $1.000285.
- Last week saw the opening of 183 vaults by 117 creators.
- A net 448,967,247 Dai was generated last week.
- WBTC deposits have been steadily increasing, but last week saw WETH close out strong.
- ETH-A 2.1 billion
- WBTC 571 million
- PSM USDC 2.9 billion
- USDP 414 million
- ETH-C 311 million
- USDC-A 238 million
- ETH-B 108 million
- USDP(PAX) 67 million
- UniV2DaiUSDC 59.21 million
- LINK 50 million
- UniV2DaiEth 31 million
- TUSD 26.5 million
- YFI 26.4 million
- UniV2WBTCEth 17 million
- UNI 13 million
- UniV2UniEth 10.53 million
- UniV2UsdcEth 9.7 million
- GUNI-DAI/USDC 9.9 million
- NSDROP 9 Million
- renBTC 6.21 million
- MANA 4.99 million
- BAT 1.34 million
- AAVE 1.06 million
- Other vaults below 500K (GUSD, KNC<>USDT, UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, UniV2DaiUsdt, UniV2EthUsdt, COMP) at 660K.
- Vaults protection skews mostly on low risk (2 billion), with 232 million protected by DefiSaver.
- ETH-A vaults’ largest collateralization ratio is 190%. When bull trots, appetite for leverage goes up.
- Liquidation Walls are not overly forgiving, but they are not pleasant either. Steps begin around an 8% drop before steepening significantly to around 25%.
- Top vaults in WBTC skew medium and high risk. Vaults hold about 11% of all WBTC supply.
- Ratification Polls for October’s Governance Cycle are now running their second week.
- This week has no active executive vote; The October 8th Executive passed on Oct 9, 2021, 12:32 UTC, and was executed on Oct 11, 2021, 14:00 UTC.
|Parameter Changes Proposal - MakerDAO Open Market Committee||Vote||Discussion|
|Ratification Poll for Implementation of DSS Charter (MIP59)||Vote||Discussion|
|Ratification Poll for Adding Data Insights Core Unit (DIN-001)||Vote||Discussion|
|Ratification Poll for Adding the Deco Fixed Rate Core Unit (DECO-001)||Vote||Discussion|
|Ratification Poll for Modify Core Unit Budget, MKT-001 (MIP40c3-SP33)||Vote||Discussion|
|Ratification Poll for Adding MakerLabs Core Unit (SNUNK-001)||Vote||Discussion|
|Ratification Poll for Growth Core Unit Budget, GRO-001 (MIP40c3-SP37)||Vote||Discussion|
|Collateral||MIP9 Poll||MIP6 Application|
|TM2-DROP||Ends 11/01 4PM UTC||Application|
|OFH||Ends 11/01 4PM UTC||Application|
|CSC||Ends 11/01 4PM UTC||Application|
Check out an ‘at-a-glance’ view of the current Vault types and their parameters on MakerBurn
Should we trial Delegate Compensation as described in MIP61 over three months? - @LongForWisdom believes the best path forward with Recognised Delegate compensation is to run a three month trial period according to the system proposed by @psychonaut in MIP61. @LongForWisdom asks whether we should trial Recognised Delegate compensation as described in MIP61 over the next three months?
Adjust WBTC-A DC-IAM-line - Demand for WBTC-A vaults has risen sharply in the last couple of weeks. According to makerburn, we will hit the max debt ceiling within just about two weeks.@makerburn is signaling to increase the WBTC-A DC-IAM-line to 1 billion to collect more fees, DAI in circulation, and keep up with the demand on DAI-from-WBTC-A.
Restarted poll [Signal Request] Raise the ESM threshold to 15% and increase the Governance Delay to 4 days - Maker is reaching a point where the core Maker security is so battle-tested that the emergency shutdown feature (ES) is beginning to become a risk rather than a solution; with only 75,000 MKR currently needed to trigger ES, it is the most likely place for someone to try to damage the system. @rune proposes to double the trigger amount to 150,000 MKR, which will reduce the risk of a sudden ES and make the system more reliable.
Crank DC, DC-IAM, & Liquidation Parameters [Preparation: Parabolic Stage] [NFA] [Second Attempt] - In response to the Governance and Risk Call during October 14th, @aburban90 signals a second attempt to raise the debt ceilings for ETH-A, ETH-B, WEBTC-A, and others along with raising the liquidation penalty for ETH-A and ETH-B vaults.
Set PSM fees to 0% - @SebVentures has been diligently pushing the idea to set PSM fees to 0%; which is also suggested in The Case for Clean Money. If their signal were to pass, Sebastien provides many long-term pros and cons and discusses how setting PSM fees to 0% would anchor the perception that 1 DAI = $1.
Would you like to see MakerDAO move in the general direction indicated by the post ‘The Case for Clean Money’? - In reaction to the initiative for Clean Money, @LongForWisdom creates an initial signal asking the community whether they would like to see MakerDAO move in the general direction indicated by the post ‘The Case for Clean Money.’
Offboarding Vaults, MKR Vesting, and Core Unit Budget Distribution - October 8, 2021
this executive proposal passed, the following changes occurred within the Maker Protocol:
Core Unit Budget Distribution:
- @PaperImperium opens the discussion for the development of a US-based political strategy. Weigh in above!
- @makerburn shares concerns that a slow automatic increase in the debt ceiling of popular vault types halts new debt issuance despite DC-IAM being active.
Meet the DeFi Delegate Knocking on the Doors of Congress
- A Coindesk article detailing the efforts @PaperImperium has made to establish connections and bridges for communication with US-based regulators. Paper has gone above and beyond, and the mainstream is starting to take notice.
- Content Production Bi-Weekly Update: 9/30 - 10/14
- Dai on Different Networks #15
- [AMA] Collateral Onboarding CSC from CurioInvest
- Issue Discussion | #2 Fixed-Rate Vault Solutions Video
- GovAlpha Weekly Update - 2021-10-14
- [Signal Request] Should we trial Delegate Compensation as described in MIP61 over three months?
- MIP60: Intangible Asset Assignment
- Core Unit Launch Pod Sessions ||| Session #20: Sidestream Auction Services
- [Signal Request] Would you like to see MakerDAO move in the general direction indicated by the post ‘The Case for Clean Money’?
- [Signal Request] Crank DC, DC-IAM, & Liquidation Parameters [Preparation: Parabolic Stage] [NFA] [Second Attempt]
- MIP6 Collateral Onboarding Application: MD Irradiance LLC: Construction Period-only Loans to Late-Stage US Solar Projects
- Governance and Risk Call #163
- MakerDAO | Forum At a Glance | October 14, 2021
- Core Unit Launch Pod Sessions | Session #20: Sidestream Auction Services
- Issue Discussion | #2: Fixed-Rate Vault Solutions
- Core Unit Launch Pod Sessions | Session #19: Deco Fixed Rate
- AMA - Discussing Fixed-Rate DAI Loans from MakerDAO with Pairwyse - AMA Ep. 09
- Join Link | GovAlpha - Mondays 17:00 UTC
- Join Link | Protocol Engineering - Tuesdays 15:00 UTC
- Join Link | Content Production - Wednesdays 15:30 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
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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.