Wow. Complex. I missed this a couple weeks ago. Will dig through more carefully. Sounds like some real discussion regarding auction efficiency vs. complexity against whatever one is going to consider is the price authority (oracle) to determine how to handle clearing bad loans and recovering capital.
I will try to construct a more detailed reply when I get some time to carefully digest the OP and the discussion. Have to say a lot of work went into this.
My biggest issue here that that we basically are ignoring any way to gauge real keeper liquidity and/or trying to create say a DSR vault where people can provide DAI liquidity to buffer the auction system as well a creating mechanisms to reduce auction loads where-ever possible.
Let me say again.
- What is keeper status?
- Are there ways to mitigate liquidations - particularly during heavy stress load times we have not considered?
- How do we keep the system primed and tested so we can gauge keeper liquidity availability etc. I have a real issue here that the liquidation system is like a fire alarm - if you never test it - you never know what is going to happen.
- Have people considered what happens in high network loads? I am talking 2000-20000gwei to post tx’s?
- I keep coming back to spreading protocol risk over multiple networks. Beginning to think it might be prudent to think about how to fork Maker on to a number of L2s and distribute back the entire thing but this is a very complex proposition but might be worth considering - not putting all eggs into one network basket because if any part of this system effectively loses network access that could kill the system very quickly.