Maker Relay Ep 73

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

The European Union’s Latest MiCA Report

Europe’s latest draft crypto regulation MiCA limits use of stablecoins like DAI

Per the article: “Yesterday the European Council published a significantly expanded proposed ‘Regulation on Markets in Crypto Assets’ (MiCA) document. This means the legislation progresses to the next step, a three-way negotiation between the Council, the European Commission, and the European Parliament. Our interpretation of the expanded document is that a stablecoin like the DAI could be heavily restricted.”

In the MiCA report, crypto-assets were divided into three buckets: asset-referenced tokens, e-money tokens, and other crypto assets.

The important distinction here is “asset-referenced tokens,” which refers to cryptocurrencies backed by an index of assets.

The article speculates that “asset-referenced” tokens and stablecoins will face stout regulation under the EU’s current proposal. The usage of Dai could be restricted within the European Union because of this distinction.

If this scenario were to play out as the article suggests, asset-referenced tokens would be limited to an activity level of fewer than 1 million transactions per day, with the total value of those transactions capped to $224mil USD “within a single currency area.”

The article purports that this total would include on-chain transactions and off-chain trading through Centralized Exchanges.

9B Dai in circulation

Another exciting milestone for MakerDAO! In addition to exceeding 9B Dai:

  • Over 10,000 MKR have been burned
  • Dai collateralized by USDC is under 30%
  • Estimated annual profits are over 132MM Dai

GUSD-PSM now live

With the successful passage and execution of the November 26th Executive, individuals can now trade Dai for Gemini USD (GUSD) using the Peg Stability Module (PSM).

The GUSD-PSM is launching with a debt ceiling of 10 million Dai and a 0% fee, meaning users only need to worry about the transaction fee when exchanging Dai and GUSD.

State of DAI

  • DAI peg experienced some slippage on the 23rd and some wider price bands for very large trades. The mid-line stood strong through the madness, and the overall range continued to tighten.

  • Max and min at 1.03 to 0.94 with 481 million DAI traded.

  • DAI supply over 9 Billion!

  • Volume on DEXs topped by Uniswap and Sushiswap.

Dai in blacklisted wallets

  • Added a look into Dai held in blacklisted wallets (on the Ethereum chain).

Mint/burn

  • Net burn of 484K over the last week.

  • Net amount of new vaults is 89.

  • ETH-A 3.1 billion:
    • PSM USDC 2.4 billion
    • WBTC 1.3 million
    • ETH-C 602 million
    • USDP PSM 468 million
    • USDC-A 238 million
    • ETH-B 142 million
    • GUNI-DAI/USDC 89 million
    • UniV2DaiUSDC 77 million
    • LINK 67 million
    • AAVE D3m 35 million
    • YFI 31 million
    • UniV2DaiEth 31 million
    • stETH 27 million
    • UniV2WBTCEth 18.42 million
    • UniV2UsdcEth 16 million
    • NSDROP 12 million
    • UNI 11.62 million
    • MATIC 9.5 million
    • UniV2UniEth 9.44 million
    • MANA 5.5 million
    • renBTC 5.2 million
    • GUSD 4.94 million
    • HTC-DROP 2 million
    • 6s Capital 1.42 million

  • ETH-C’s largest bucket is collateralized at 540%.

  • Liquidation Walls get steep just above 20%.

  • Vaults at risk in an 18% drop would be mostly low risk, primarily on ETH-A and ETH-B. The larger vaults with the most collateral, in this scenario, have DeFi saver protection.

  • Staked ETH has grown considerably since launch, and luckily most vaults collateralize at 200%.

  • For what it is worth, that is still 22 million in medium risk.

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

:ballot_box: This Week in Governance

MIPs

Weekly MIPs Update #64

Active Executive Votes

There is currently no active executive vote. The most recent executive vote (shown below) was active and passed on November 26th. It was executed on November 29th.

Active Governance Polls

Poll Name Vote Discussion
Increase the Dust Parameter for Most Vault Types Vote Discussion
Increase the Dust Parameter for ETH-B Vault Type Vote Discussion
Use the MakerDAO Treasury to Fund MKR Expenses Vote Discussion
Add GUNIV3DAIUSDC2-A as a new Vault Type Vote Discussion
One Time Payment to the GovComms CU to Deal with Budget Issues Vote Discussion
Parameter Changes Proposal - MakerDAO Open Market Committee Vote Discussion
Add CurveLP-stETH-ETH as a new Vault Type Vote Discussion

Community Greenlight Polls

There is currently no active community greenlight polls.

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

Active Signal Requests

Should We Introduce a Performance Modifier to the Delegate Compensation Trial? - Signal Closes December 10th - The GovAlpha Core Unit would like to propose a change to the cut-off value for delegate compensation. They introduce a Performance Modifier which will result in a reduced amount of compensation at lower levels of metric, and ask whether we should introduce a performance modifier to the Delegate Compensation Trial.

Offboarding MATIC - Signal Closes November 30th - The MATIC vault is unprofitable unless it will be able to generate around 30M Dai. @NikKunkel formally asks the community whether Governance should offboard the MATIC token as recently done with KNC, COMP, and others.

Last Week

Onboarding New Vault Types, Parameter Changes, and Core Unit Budget Distributions - November 26th, 2021

This Executive has passed executed on November 26th with the following changes:

  • As per the successful outcome of this governance poll, WBTC-C will be onboarded with the parameters listed.
  • As per the successful outcome of this governance poll, PSM-GUSD-A will be onboarded with the parameters listed below:
Parameter New
Fee In 0%
Fee Out 0%
Max Debt Ceiling 10 million DAI
Target Available Debt 10 million DAI
Ceiling Increase Cooldown 24 hours
  • As per the successful outcome of this governance poll,, the System Surplus Buffer increased from 60 million DAI to 90 million DAI over a period of 30 weeks (1 million DAI per week).
  • As per the successful outcome of this governance poll, the Aave D3M Maximum Debt Ceiling increased from 50 million DAI to 100 million DAI.
  • As per multiple successful budget proposals (linked below), DAI will be transferred and streamed to multiple Core Units:
Core Unit Amount Proposal Direct/Stream
SAS-001 245,738 DAI Proposal Direct
IS-001 195,443 DAI Proposal Direct
DECO-001 465,625 DAI Proposal Direct
RWF-001 1,860,000 DAI Proposal Over 12 months starting 2022-01-01
COM-001 12,242 DAI Proposal Over 1 month starting 2021-12-01
COM-001 257,500 DAI Proposal Over 6 months starting 2021-01-01
SAS-001 1,130,393 DAI Proposal Over 12 months starting 2021-12-01
IS-001 366,563 DAI Proposal Over 8 months starting 2021-12-01
MKT-001 424,944 DAI Proposal Over 5 months starting 2021-12-01
DECO-001 5,121,875 DAI Proposal Over 33 months starting 2021-12-01

:diving_mask: Community Deep Dai-ve

Tweet of the Week

Forum Insight

Check out the latest Forum at a Glance

Articles

:clipboard: Team Updates

Content Production

ETHDenver 2022 Planning Update
Multi-chain DAI-lights - November 24, 2021

Development and UX

Governance Portal Release v0.2.4 - November 23rd

GovAlpha

GovAlpha Weekly Update - 2021-11-26
[Discussion/Feedback] Improving Clarity Regarding Signal Request Outcomes

Governance Communications

GovComms Bi-Weekly Update: Nov 15 - 26
Forum at a Glance: November 18 - 25

Growth

Growth CU weekly update: Nov 19-26
[Nexo Institutional Vault] Collateral Onboarding – Update

Oracles

[CurveLP-stETH-ETH] Collateral Onboarding Oracle Assessment (MIP10c3-SP43)

Protocol Engineering

[Curve.fi-ETH-stETH] ERC20 Token Smart Contract Technical Assessment
Chainlog: Improving how we keep track of our deployed contracts

Real-World Finance

MIP55c3-SP2: Create RealDAO SPF to make Moloch-based SPVs

Sustainable Ecosystem Scaling

SES Updates - 25.11.2021
Maker Explorer #1: Real-World Sandbox Grant Report
Mapping MakerDAO’s GitHub footprint
Aggregating educational resources - asking for community input

: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

:anchor: Useful Links

Forum and Maker Chat
Discuss and debate MakerDAO.

Public Call Calender | Public Votes & Important Events Calendar
Subscribe to both 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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