Maker Relay Ep 71

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

Maker Wormhole

The Protocol Engineering team is excited to introduce Maker Wormhole! This is a new module for transferring and minting Dai on different blockchains.

Users can currently transfer Dai between Arbitrum, Optimism, and the Ethereum mainnet. Support for transfers across more L2s and minting on chains (besides the Ethereum mainnet) is coming soon!

More details are available in the Forum Announcement and promotional video.

Annual profit tops 100MM; Surplus Buffer burns MKR

MakerDAO’s annual profit is now estimated at over $100MM, and the Surplus Buffer reached its capacity on November 14th, with 65.4 MKR burned thus far.

Annual profits are calculated by MakerBurn and include annualized stability fees, liquidations, and fees from the Peg Stability Module (PSM) and Dai Savings Rate (DSR) minus Core Unit expenses.

As the Surplus Buffer is explained on MakerBurn:

If all debt to the system were instantly repaid, a surplus of 60M DAI would remain.

The surplus increases with time as fees on debt accrues, DAI enters/exits the PSM, and liquidations net a profit for the system.

The system aims to keep a buffer of 60M, and when the surplus surpasses this buffer, the exceeding amount is used to buy back and burn MKR.

Whenever the DAO has expenses, these are paid by pulling DAI from the surplus.

Peg Stability Module (PSM) fees set to 0% on PSM-USDC-A and PSM-USDP-A

With the passage of the November 4th Executive, trading fees have effectively been eliminated on the USDC and USDP (formerly PAX) PSMs.

Users still have to cover gas fees; this change lowers the Fee In (tin) to 0%.

According to @rema of the Risk Core Unit,

State of DAI

  • A little turbulence on the 11th, but the overall DAI price range is tighter this week.

  • The total supply took another nice leap this week, and the TVL is creeping its way to 20 billion. All this while USDC exposure continues to dip, now down around 12% in the past 30 days.

MKR burning resumed
burned to date

  • MKR burns are back on the menu!

  • Volume at around $990 million this last week.
  • Average VWAP (Volume-Weighted-Average-Price) places Dai at $.999992.

  • The 11th was a big day for Dai, with over 473mil changing hands through Uniswap alone.

  • A solid 47 new vaults were opened last week by 64 unique creators.

  • The day-to-day breakdown shows a net decrease of 40,895,596 Dai:

net mint/burn

MakerBurn Rundown

  • ETH-A 3.2 billion
    • WBTC 1.2 billion
    • PSM USDC 2.1 billion
    • ETH-C 726 million
    • USDP PSM 467 million
    • ETH-B 158 million
    • UniV2DaiUSDC 77.5 million
    • LINK 71 million
    • GUNI-DAI-USDC 50 million
    • YFI 33 million
    • UniV2DaiEth 31.3 million
    • UniV2UsdcEth 15.6 million
    • UniV2WBTCEth 15.4 million
    • UNI 14.9 million
    • Aave D3M 10 million
    • NSDROP 10 Million
    • UniV2UniEth 9.4 million
    • MATIC 8.94 million
    • MANA 5.01 million
    • GUSD 5 million
    • renBTC 4.6 million
    • 6s 1.42 million
    • AAVE 1.2 million
  • Other vaults below 500K (UniV2LINKETH UniV2AAVEETH, UniV2WbtcDai, COMP, BAL,) at 803K.

  • The Liquidation Walls are fairly steep this week, with liquidations beginning around 5% and sharpening significantly at around 18%.

  • That breaks down to almost entirely ETH Ilk ’s. It is worth mentioning that the ETH-C is a yearn strategy that will likely take any market response into account and unwind.

ETH-B buckets

  • ETH-B’s collateralization buckets are highest at 140%.
  • Its risk premium has dropped a few percent to 37%.

  • WBTC-A keeps on building. Its total debt saw a rise of over $800k, and the median debt is sitting right around $55k.

daistats.com | makerburn.com | maker.blockanalitica.com

:ballot_box: This Week in Governance

MIPs

Weekly MIPs Update #62

  • The Ratification Polls for November are now entering their second and final week.

Active Executive Votes

There is currently no active executive vote. The most recent executive vote (shown below) was active on November 12th and passed on November 14th. It is available for execution on November 16th.

Last Week’s Executive Vote

Parameter Changes, Return Unused Budget to the Surplus Buffer - November 12th, 2021

This executive proposal passed on November 14th, 2021, 04:18 UTC. The following changes occurred within the Maker Protocol:

  • Parameter Changes:
Vault Parameter Previous New
GUNIV3DAIUSDC-A Maximum Debt Ceiling (line) 50 million DAI 500 million DAI
GUNIV3DAIUSDC-A Liquidation Ratio 105% 102%
GUNIV3DAIUSDC-A Stability Fee 1.0% 0.5%
WSTETH-A Maximum Debt Ceiling (line) 5 million DAI 50 million DAI
DIRECT-AAVEV2-DAI Maximum Debt Ceiling (line) 10 million DAI 50 million DAI
DIRECT-AAVEV2-DAI Target Available Debt (gap) 10 million DAI 25 million DAI
DIRECT-AAVEV2-DAI Target Borrow Rate 4.0% 3.9%
  • As per this forum thread, 218,059.81 unused DAI from the GovAlpha Core Unit budget was returned to the Surplus Buffer from the PauseProxy contract. This amount comprises budgeted funds that were unused by the GovAlpha Core Unit.

Active Governance Polls

Poll Name Vote Discussion
Local Liquidation Limit Adjustments for ETH-A, ETH-B, ETH-C, WBTC-A and WSTETH-A Vote Discussion
Rates Proposal Vote Discussion
Offboard the AAVE-A Vault Type Vote Discussion
Offboard the BAL-A Vault Type Vote Discussion
Offboard the COMP-A Vault Type Vote Discussion
Change of Covenants for P1-DROP Vote Discussion
Ratification Poll for Adding Sidestream Auction Services Core Unit, SAS-001 Vote Discussion
Ratification Poll for Real-World Finance Core Unit MKR Compensation, RWF-001 Vote Discussion
Ratification Poll for Supplement to Collateral Onboarding Application Vote Discussion
Ratification Poll for the Immunefi Security Core Unit (IS-001) Vote Discussion
Ratification Poll for Modify Core Unit Budget, COM-001 Vote Discussion
Ratification Poll for Modify Core Unit Budget, MKT-001 Vote Discussion
Ratification Poll for Adding the Deco Fixed Rate Core Unit (DECO-001) Vote Discussion
Ratification Poll for Modify Core Unit Budget, RWF-001 Vote Discussion

Community Greenlight Polls

Collateral MIP9 Poll MIP6 Application
SB-frOGI (SolidBlock Red Frog Digital Coin) Ends 11/29 4PM UTC Application
MONETALIS (Monetalis Wholesale SME Green Growth Lending) Ends 11/29 4PM UTC Application

Check out an ‘at-a-glance’ view of the current Vault types and their parameters on MakerBurn

Active Signal Requests

Increasing the Surplus Buffer (2021-11) - Signal Closes November 19th - @ultraschuppi is signaling to the community in request to increase the Surplus Buffer. He asks the community where we want to set the Surplus Buffer and keep burning some profits.

New vault-type for WBTC with a higher LR - Signal Closes November 19th - DAI minted from WBTC has recently been increasingly popular with the amount of DAI being tripled within the last month. A large market downturn on WBTC vaults running with a higher Liquidation Ratio is less likely to undergo liquidations, resulting in a loss for the protocol and the vault owner. In response, @ultraschuppi signals to the community, asking whether we should add a new WBTC-based vault type with a higher LR.

Burn Baby Burn! [Burn The MKR Treasury] - Signal Closes November 26th - @aburban90 asks the community to burn half of MKR in the treasury and use the remainder to vest Core Units.

Should We Mint New MKR for Protocol Expenses or Fund Them With MKR from the MakerDAO Treasury? - Signal Closes November 27th - There is no clear indication about what should be the source of the MKR used for future expenses. @mkrorbkr presents two options: Use MKR from the MakerDAO Treasury or Mint new MKR using the PauseProxy.

Adjusting Dust Parameter (2021-4) - Signal Closes November 25th - With gas and ETH prices continuing to go up, our dust limits offer less protection against losses. In response, @monet-supply proposes whether we should increase dust limits for all Vault types.

:diving_mask: Community Deep Dai-ve

Tweet of the Week

Forum Insight

Check out the latest Forum at a Glance

Articles

:clipboard: Team Updates

Collateral Engineering Services

CES Core Unit Update
Chaos Labs joins SES Incubation Program
DssBlow: Making Surplus Buffer Repayments Easy

Content Production

Content Production Quarterly Update: Aug - Oct 2021
Maker Governance Review: October 2021
Multi-chain DAI-lights - November 11, 2021
Ask MakerDAO #12: [AMA] Learn About Maker Wormhole with Protocol Engineering
[AMA] Risk Management with MakerDAO’s Risk Core Unit

Development and UX

Governance Portal Release v0.2.3 - November 8th

GovAlpha

GovAlpha Q3 2021 Quarterly Review
GovAlpha Weekly Update - 2021-11-12
Meet Your Delegate #6
Intangible Asset Agreed Modification of Management - 2021-11-15
Core Unit Launch Pod Sessions ||| Session #20: Sidestream Auction Services

Governance Communications

GovComms Bi-Weekly Update: October 30th - November 12th
Maker Governance Review: October 2021
Forum at a Glance: November 4th - November 11th

Growth

Growth CU weekly update: November 4th - November 12th

Oracles

MIP40c3-SP45: Modify Core Unit Budget, ORA-001 (Oracle Gas Costs)

Protocol Engineering

Introducing Maker Wormhole

Real-World Finance

RWA Business Continuity
[Consultation Poll] Centrifuge Global Debt Ceiling Cap
Recurring Strategy Reviews - Next Steps & Key Focus Areas (Poll)
MakerDAO Actual Expenses vs Budget - September 2021

Risk

[PSM-GUSD-A] Collateral Onboarding Risk Evaluation
Auction Throughput Parameters Adjustments - Nov 9 2021
Proposed Offboarding Collateral Parameters #2

Sustainable Ecosystem Scaling

SES Updates - 11.11.2021
Chaos Labs joins SES Incubation Program
Introducing the CU Budget Transparency Map
Core Unit Tools #11: Radicle.xyz
Core Unit Launch Pod Sessions ||| Session #21: Immunefi Security Core Unit

:calendar: Meetings and Events

Last Week’s Call Recordings

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 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

Core Unit Launch Pod Sessions

  • Core Unit Launch Pod Session #21: Immunefi Security Core Unit | Tuesday, Nov 16th @ 6:00 PM UTC

Core Unit Tools

  • Core Unit Tools #11: Radicle.xyz | Wedenesday, Nov 17th @ 4:00 PM UTC

Meet Your Delegate

  • Meet You Delegate #6: GFX Labs | Wednesday, Nov 17th @ 6:00 PM UTC

AMA

  • Ask MakerDAO #12: [AMA] Learn About Maker Wormhole with Protocol Engineering | Friday, Nov 19 @ 4:00 PM UTC

: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 useful 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.

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The State of DAI video version is now available on the MakerDAO Youtube channel:

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