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This Week in Governance
Community Deep Dai-ve
Mark your Calendar
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!
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.
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,
- 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 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:
- 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’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.
- The Ratification Polls for November are now entering their second and final week.
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.
This executive proposal passed on November 14th, 2021, 04:18 UTC. The following changes occurred within the Maker Protocol:
- Parameter Changes:
|GUNIV3DAIUSDC-A||Maximum Debt Ceiling (line)||50 million DAI||500 million DAI|
|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.
|Local Liquidation Limit Adjustments for ETH-A, ETH-B, ETH-C, WBTC-A and WSTETH-A||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|
|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
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.
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.
- @makerburn shares the latest updates made to one of the best MakerDAO trackers around. Worth a bookmark and a daily scan!
- @Aes provides a detailed breakdown of protocol costs, comparing budgeted expenses to actualized spending. This variance currently represents over $7 million in funding.
- The partnership focuses on esports and hosting events for long-standing gaming classics like CS:GO and Dota2. Very cool initiative!
- The article stresses the need for decentralized stable options as the DeFi landscape continues to grow. The author also feels protocols like MakerDAO face undue costs and risks when building one-off bridges.
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
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
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
- 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 Session #21: Immunefi Security Core Unit | Tuesday, Nov 16th @ 6:00 PM UTC
- Ask MakerDAO #12: [AMA] Learn About Maker Wormhole with Protocol Engineering | Friday, Nov 19 @ 4:00 PM 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.