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This Week in Governance
Community Deep Dai-ve
Mark your Calendar
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.
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
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.
- 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.
- Added a look into Dai held in blacklisted wallets (on the Ethereum chain).
- 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.
- As per MIP51c4: Calendar Exceptions, there will be no Monthly Governance Cycle in December, i.e., no Formal Submission Window and no Ratification Polls. Check out the Governance schedule for December and January.
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.
|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|
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
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.
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:
|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:
|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|
- @richards86 assesses the AAVE off-boarding from a user’s perspective and offers recommendations for how off-boarding can be better handled in the future.
- @Petru_Catana of the SES Core Unit is putting together a definitive list of MakerDAO learning resources and is asking for community input on any commonly used resources or help expand the general MakerDAO knowledge base.
- The U.S. Senate Banking Committee sent out a request to several stablecoin issuers and cryptocurrency exchanges, demanding an explanation of how the entire process works and how investors are protected.
- Cryptoslate attempts to shed light on the current stablecoin landscape, though several common misconceptions pertaining to Dai remain.
- Governance and Risk Call #169
- Maker Explorer #1 | Real-World Sandbox Grant Report
- Meet Your Delegate #7
- 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
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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.