Maker Relay Ep 7

Maker Relay 07

Hey everyone, thanks for checking out Maker Relay!

Whether you hold Maker (MKR) or DAI, own a vault, or want to get more involved in MakerDAO governance, this is your one-stop-shop for updates on the MakerDAO ecosystem.


Executive Votes

Governance Polls

Meta Parameter Polls

Poll Name Vote Discussion
Base Rate Adjustment Vote

System Parameters

Poll Name Vote Discussion
Adjust the BAT-A Risk Premium Vote Signal Request
Adjust the Dust Parameter Vote Signal Request
Increase the Surplus Auction Buffer Vote Signal Request

Maker Improvement Proposal Polling

Sub Proposal Vote Discussion
Liquidations 1.2 Upgrade Vote Proposal
MIP13c3-SP1 - Declaration of Intent (Forward Guidance) Vote Proposal
MIP0c13-SP1 - Subproposal for Core Personnel Offboarding Vote Proposal
MIP12c2-SP4 - LRC Collateral Onboarding Vote Proposal
MIP10c15-SP6 - Appoint MyCrypto as an Oracle Light Feed Vote Proposal

Open Signal Requests

MIPs Updates

The Maker Improvement Proposal (MIPs) Framework provides a clear process for Maker governance to change the Protocol as needed.

Proposals in the Request-For-Comments phase include:

Learn more about Maker Improvement Proposals (MIPs)

Governance Cycle

The August Governance cycle has begun. See the vote table above for the inclusion polls.

Domain Teams

Smart Contracts

Current Events

Vault Compensation Update

Vault Compensation V2

This update (posted Aug 7 2020), breaks down the updates in the Compensation plan after the failure of the vote from July 13th-16th. New polls will be structured to differentiate between MKR voters opposed to a specific plan, or compensation in general.

This also lays out financial plans for funding and discusses some operating expenses.

The compensation that will be distributed to vaults will be in MKR instead of DAI. These main updates came with some goals & principles as well:

“Completeness…Fairness…Consensus…Simplicity…Economic Soundness…”

Liquidations System 1.2 Upgrade

Liquidations System 1.2 Upgrade

This post contains technical details and a timeline for the poll/executive vote for this potential “simple system update.”

Peg Stabilization Module (PSM)

Discussion around the PSM continues. Please see last week’s Maker Forum Deep Dai-ve for background.

Thoughts On The Peg, And A Fundamental Problem With The Current Stability Fee Design

raiden4 created this Reddit post, cited by @FourthStreet, in a Forum post, weighing in on how to fix the peg:

How much demand is there for DAI?
@OliverNChalk asks:

"How much demand do they see realistically?

Do they envision a scenario where supply manages to outpace this demand (only using 0% SF and not introducing negative rates?"

Lowering the Base Rate

Interim Forward Guidance for Base Rate

@monet-supply turned a chat into a forum post, laying out some of the pros and cons of further reducing the base rate. Relating to @hexonaut’s post from last week. Find more discussion on this topic in We Should be Lowering the Base Rate.

Real World Assets in the Maker Protocol

Initial Thoughts and Questions for Including Real World Assets in the Maker Protocol

@g_dip lays out an initial dive into this subject, elaborating on this point:

"Conceptually there are two ways two think of the structuring process that allows a token to represent a claim on an asset in the Maker Protocol:

  1. Tokenize a claim on a particular underlying asset itself
  2. Create and tokenize a debt instrument which represents a claim on proceeds of the underlying asset in the event of a liquidation"

g_dip goes on to ask questions about the benefits, potential risks and outcomes, and general opinions on the subject.

In ‘How MakerDAO can be a competitive lender in the Credit Tenant Lease marketplace,’ @mrabino1 begins a discussion on how it may be sensible for MKR to be setting up a revolving credit facility for a Lender.

The comments are full of more useful information; answering initial questions as well as providing this diagram of the proposed structure for this general idea.

State of the Peg 8-10-2020

  • DAI peg still hovering above peg at ~1.016.
  • For an in depth breakdown on the Dai price premium check out Governance and Risk ep 104.

  • Above 400 million Dai with more room in the ETH, BAT, USDC, and WBTC Debt Ceilings.

  • Volume at around $86 million past seven days.
  • Average VWAP (Volume-Weighted-Average-Price) places Dai at $1.016

  • ETH vaults collateralization ratio distributing towards higher collateralization bands like 300-350%. The majority of the debt outstanding is still in 150-300% buckets.

  • Some of the larger vaults have pushed the 300 bucket up significantly.

  • The first liquidation wall sits at $285 for possible liquidations of 32 million Dai.

  • The second significant liquidation wall is at $242.8 ETH, a 39% drop would coincide with 66 million Dai getting liquidated.

WBTC Collateralization much riskier

  • WBTC Collateralization much riskier with the majority in the 150-200% bucket.

  • An 18% price drop would coincide with 46 million Dai getting liquidated. |


Articles and Thought Pieces

Videos and Podcasts

Maker Forum Deep Dai-ve

@kaciloy opens a dialogue on the costs of participating as a Keeper in the auction process and the relationship between Keepers and fluidity of liquidation auctions.

befitsandpiper put together this how-to guide for simplifying the process of applying for SC domain community assessment based on this template.


Meetings and Events

MakerDAO Open Calls

Community Call

Community Collateral Onboarding

Governance & Risk

Community Events


Reference Links

Discuss and debate Maker governance in the Forum and over Maker Chat.

Propose technical changes, poll, and vote in the Governance Portal.

Learn more about the Maker protocol in our Documentation.

Have Feedback?

We value your input! Post as a reply to this thread, take our survey, or join us in the Community-Development channel to let us know what you want to see.

Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does and should not serve as financial advice or an inducement to vote in any specific way. This update is purely for informative and for communications purposes only.


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