Maker Relay 07
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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.
Passed - Fix the WBTC-A debt ceiling
- Quick fix to debt ceiling math in regular Executive Proposal. Find the discussion here.
Meta Parameter Polls
|Base Rate Adjustment||Vote|
|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
|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
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:
- MIP20: Target Price Adjustment Module-(Vox)
- MIP17: Weekly Actual Debt Ceiling Adjustments
MIP15: Dark Spell Mechanism
- Feedback ends in August, eligible for the September governance cycle.
MIP14: Protocol Dai Transfer
- Looking for a new author from the community.
Learn more about Maker Improvement Proposals (MIPs)
The August Governance cycle has begun. See the vote table above for the inclusion polls.
- See Mariano’s elaboration on the Saturday executive.
- Read more about the math in MakerDAO’s documentation.
Vault Compensation Update
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:
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.
"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
@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
@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:
- Tokenize a claim on a particular underlying asset itself
- 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 with the majority in the 150-200% bucket.
- An 18% price drop would coincide with 46 million Dai getting liquidated.
Articles and Thought Pieces
- Maker Governance Review: July 2020
- Ethereum Emission Debate Sparked by MakerDao Developer Marc-André Dumas’s Script
- Really Awesome Analytics Dashboard for the Maker Protocol
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.
Meetings and Events
MakerDAO Open Calls
- Tuesdays at 16:00 UTC | Crowdcast
Community Collateral Onboarding
- Bi-weekly Wednesdays at 17:00 UTC | Agenda
Governance & Risk
- Thursdays at 16:00 UTC | Zoom
- Aug 10 - Aug 18 Southeast Asia DeFi Week #2 | Welcome to the Agricultural Age of Crypto
- Aug 11 Blockchain Jobs: HR Experts Share Their Advice [Future Of Blockchain Space]
- Aug 14 LongHash Hatch Batch 4 Demo Day
- Aug 18 The MakerDAO Community Call: Brian McMichael Introduction to the Ilk-Registry
Propose technical changes, poll, and vote in the Governance Portal.
Learn more about the Maker protocol in our Documentation.
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.