Monthly Core Unit Updates: November

Summary

Welcome to the first Monthly Core Unit Updates Summary :wave:
As the number of Core Units continues to scale, it’s a good time to streamline a slice of information produced by all the Core Units; recurring team updates.

This thread contains recurring updates that were posted by Core Units and Teams at MakerDAO for the month of November.

Core Units are presented in alphabetical order.

Quick Links :point_down:

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Non-Core Units

Credits and Feedback

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Collateral Engineering Services

Bi-weekly Updates

CES Core Unit Update | #3

  • Kauê Cano @kaue will be joining us as a Smart Contract Engineer! Most recently, Kauê worked at Jigstack as a Blockchain Lead and led local and remote teams of smart contract and dApp developers involving multiple DeFi products of the Jigstack ecosystem. Prior to Jigstack, Kauê worked with or founded companies focusing on state-of-the-art on Artificial Intelligence, Data Science, Blockchain, and DeFi.
  • Nazar Duchak will be joining us as a Smart Contract Engineer! Most recently, Nazar worked at ParaSwap as a Blockchain Developer and was involved with pricing aggregation, partner exchange integration, and designing and building ParaSwap’s infrastructure. Prior to ParaSwap, Nazar worked for IOV Labs (RSK and RIF Platforms), Aeternity, as well as a variety of organizations as a full stack developer.
  • Phil Elsasser @0xean will be joining us as an Advisor to the CES Core Unit! Phil is the Head of Technology at the new Fox Foundation, supporting the efforts of the ShapeShift DAO. Previous to his role with the Fox Foundation, Phil was the CTO and lead solidity developer on ElasticDAO core, worked for Amazon in Measurement and Data Science, was a founder of a DeFi crypto startup called MARKET Protocol, and has led numerous technical teams in the web2 and web3 space. His early career was spent building trading algorithms and execution systems on proprietary trading desks in Chicago, which cemented his fascination with capital markets and the DeFi ecosystem.

Please take a moment to welcome Kauê, Nazar, and Phil to the CES Core Unit and MakerDAO. I’m excited for them to bring their background, talents, and experiences to the team and the protocol!

Again, I want to thank all that have assisted CES in hiring our team: PE (Chris & Brian), Oracles (Mark-André), SES (Wouter), and Talent (Teodor). The CES Core Unit kicked off on Oct 4, and within six weeks, we’ve been able to identify, interview, and make offers for all key positions (one more is coming that I will announce shortly). That is quite an accomplishment given the talent environment, the newness of a DAO, and the industry we work within.

CES Status

This week, Nikolaj and Henrique formally started with the CES Core Unit…and what a perfect week to start! Both were able to immediately jump in while onboarding and materially contribute to the WBTC-B, SocGen contract review/assessment, and MIP21 work. We also had our initial meeting with PE to discuss the initial transition of collateral work from PE to CES. Next week, Kauê will start on Nov 24, and Nazar will join us part-time until Dec 20 as he winds down his ParaSwap work.

Prior to the team starting, my time was focused on getting the CES Core Unit up and running from an operational perspective, aligning with key Core Unit stakeholders, and recruiting the team. This week, we started the transition into operating the Core Unit and working to deliver on our mandate:

Scale the Dai supply (1T) by enabling anyone to onboard collateral in a stable and cost-effective manner.

So, what’s next?

CES Focus & Deliverables

In the past six weeks, I have learned a lot and am excited about the opportunity ahead of us. As we stay true to our crypto native roots, I believe the MakerDAO has a tremendous future by enhancing real-world asset exposure to help us deliver on the CES mandate.

In the short time remaining before the end of the year, the CES Core Unit will focus on a variety of goals and deliverables:

  • Onboard new CES team members
  • Continue to identify and transition collateral activities from PE to CES
  • Collateral process and coordination of MakerDAO stakeholders
  • CES Strategic Planning

As always, please reach out to me if you have any questions or feedback on the above.


CES Core Unit Update | #4

Let’s start with our latest new hire.

  • Miguel Cabeza will be joining us as a Technical Product Manager! Miguel has experience as Head of Product Management in the e-commerce industry and 10+ years of experience on roles in Digital Marketing in video games and FMCG industries. He is a contributor to yearn.finance and SAI holder (still have some dust in a wallet!). Please join me in welcoming Miguel to the team as he started part-time on Nov 29th.

Overall, this completes the core CES team. We have an opportunistic hire open for a Lead Smart Contract Engineer, Lead Smart Contract Engineer, and have several candidates working through the hiring process. If you know of anyone that would fit this job description, please reach out to me.

CES Status

It’s been a busy few weeks with onboarding new team members and getting into the execution phase of the core unit. Below is a short summary of the high-level accomplishments:

  • Continued working with the Maker CUs and on the SocGen implementation.
    • Nikolaj delivered the MIP21 technical overview and implementation recommendations for SocGen.
  • Syncing and alignment with Maker CUs on our RWA approach.
  • Contribute to Goerli and Mainnet executive spell for Dec 3rd in collaboration with PE, specifically working on the onboarding of GUNIV3DAIUSDC2-A, collateral rate changes, dust changes, and debt ceiling changes. Having multiple teams work on a mainnet spell is a first in MakerDAO, which is a development towards parallelization of work which will help reduce the bus factor and increase decentralization in the DAO. We are thrilled with the support we’ve had from PE so far in getting up to speed and appreciate their collaboration on this.
  • Identify gaps in existing documentation and processes as we go through the collateral onboarding and spell-making processes. Started work on spell crafting docs.
  • Internal training: Did walkthrough of the Maker Protocol modules and collateral onboarding process. Had two dedicated teamwork sessions on writing the weekly spell.
  • Contributed with input on the Collateral Offboarding Process MIP by PaperImperium.
  • Continued with the CES CU planning process and budget MIP preparation.

As always, let me know if you have any questions!


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Content Production

Bi-Weekly Updates

Content Production Quarterly Update: Aug - Oct 2021

Greetings from the Content Production Core Unit! In addition to our usual update (10/29 - 11/11), we’re also providing details on what we’ve been up to this quarter and what we’re looking forward to in Q1 2023.

Administrative Updates

  • Attended ETHPortland and NFT.NYC

ETHPortland and NFT.NYC turned out to be a nice reintroduction to crypto conferences: we got to reconnect with the crypto community, meet most of each other for the first time in real life, and meet members of GovComms and Growth as well.

We saw a lot of interest in MakerDAO’s operations and DAOops in general and enthusiasm toward the developments in Real-World Finance and the reduction of Dai’s reliance on USDC, and the team had good discussions about our direction and upcoming opportunities.

  • Obtained business insurance
  • Obtained legal counsel

We’ve started working with an attorney to help us understand what regulations we may or may not need to worry about with regard to content production. Unfortunately, it took longer than anticipated to get onboarded due to a mix-up with our payment processor, but we got things ironed out and had our first meeting this past week.

It sounds like the regulations we need to worry about shouldn’t have much of an impact on our existing efforts, but we will be asking him to review some of our work on the Community Portal and Explainer Videos to ensure there aren’t any red flags prior to publication.

Content Production Bi-Weekly Update 10/29 - 11/11

Video

Writing

Want to read Maker Relay and Dai on Different Networks in your email? Sign up on Substack: https://makerdaoupdates.substack.com/.

Audio
  • Created 11 intro songs for various video/audio productions (including future projects)
  • Created five background songs to give our educational content a more professional tone.
  • Started working with ElPro on the podcast idea “Meet the Makers”
Other
  • Started discussions on organizing the content collection and a side event at ETHDenver.
  • Distributed a commemorative NFT for Rocket.chat - please DM us if you haven’t received one yet!
  • Released and updated the Dai-Curious Dashboard, which details a wide range of high-level MakerDAO financials.

Looking Ahead

In the coming weeks, we’ll be:

  • Posting a promo video for Maker Wormhole.
  • Hosting an AMA on Maker Wormhole featuring Sam and Kris from Protocol Engineering.
  • Hosting a meeting with multiple Core Unit contributors/facilitators to discuss plans for ETH Denver.
  • Building a Keeper to better understand and document the process from an inexperienced user’s perspective.

Quarterly Update

Community Portal

Community Portal v2.0 will be ready for launch following a review by our attorney. We’ve rebuilt the existing Portal with a new CMS that’s more scalable and less expensive, removed outdated content in the Learn section, and reorganized the remaining content for accessibility, and updated the Resources section to better reflect the current state of MakerDAO.

Explainer Videos

Our first explainer video, “How to Vote in Governance” is also awaiting legal review and is otherwise ready for publication. It’s taken longer than anticipated to get the first video out due to the extra work involved in setting up our scriptwriting, design, and animation processes, but getting these in place helps streamline the production of the rest of the explainer videos.

We have scripts we’re working on in collaboration with GovAlpha (linked here) at varying stages of completion and several topical scripts covering things like liquidations.

Regular Publications

To increase the accessibility of our work on Maker Relay (in collaboration with GovComms) and Multi-chain Dai-lights (formerly Dai on Different Networks), we’ve made these updates available via email using Substack; once Community Portal v2.0 launches, we’ll publish these updates on the blog and allow readers to subscribe to as many or few updates as they would like to receive.

Looking Ahead

In Q1 2022, we’ll be focusing on:

  • Collecting content at ETHDenver and organizing a MakerDAO side event. Jerry’s based in Denver and plugged into the local music scene, which means he
  • Launching the pilot of our Ambassador Program, which will pay contributors from different regions to translate content to and from different languages, manage localized social media channels, and host meetups. The pilot will target Latin America.
  • Updating content in the Learn section of the Community Portal, adding more Resources as they become available, and testing for usability.
  • Publishing Explainer Videos, starting with several we’re collaborating on with GovAlpha and moving on to important topics like Liquidations and Collateral Onboarding.

Budget Update

After reviewing our accounting for October, it appears we’re more under budget on salaries than we reported in our most recent budget proposal by about 9000 Dai, and our Community Portal fund has been largely unused since the new CMS doesn’t require input from a React dev.

We’re currently assessing the cost of the content production efforts we’re proposing for ETHDenver and plan to put up a Signal Request to see whether or not we have the community’s support in reallocating these funds to cover those expenses.

Received: (in a multi-sig controlled by Governance)

Category Funds
Total since Aug 31 (the last budget passed) 98,067 DAI
Total in streaming contract 103,134 DAI
Total in Gnosis multi-sig (where DAI went prior to streaming) 17,359.73

Spent since October 1st:

Category Funds
Salaries 48,637.00 DAI
Community Management 400 DAI
Contingency 8089.29
Other 886.93
Total 58,013.22
Leftover Budget 120,493.73
- Contingency leftovers 8652.71 DAI
- Continuity 46,500 DAI
New Leftover Total 65,341.02

We’ve also rolled 51,056 DAI over to our new budget proposal

Quarterly Update for August - October is available here.

As always, check out our Transparency Dashboard to see what we’re working on and please join us for our weekly Office Hours on Tuesdays at 14:30 UTC.


Content Production Bi-Weekly Update: 11/12 - 11/25

Greetings from the Content Production Core Unit! The team took last Thursday and Friday off for the Thanksgiving holiday, which means this update will cover the last three weeks.

Administrative Updates

  • Onboarded legal counsel; beginning to review our content.
  • Transitioning to QuickBooks for some of our payments to save on gas fees

Content Production

Video

Finishing the first cut of Governance Processes.
Finalizing script for Liquidations explainer.
Planning content production for ETH Denver.

Writing

Want to read Maker Relay and Multi-chain Dai-lights in your email? Sign up on Substack: https://makerdaoupdates.substack.com/.

Syndicated content on
Audio
  • Production for Wormhole video
  • Audio editing/production for the State of DAI (video version)
  • Production on intros for various calls and meetings
  • Planning for ETH Denver Welcome Party (including booking bands/venue)
Other

Looking Ahead

In the coming weeks, we’ll be:

  • Announcing details of the “Welcome to Denver” event we’re planning around ETH Denver
  • Reorganizing and assessing our progress/new year strategy
  • Putting out new job ads for hires
    • Press Relations
    • Video Production Assistant
    • Audio Production Assistant
    • Social Media Manager
  • Getting our “How-to-Vote” video published on the Governance manual, as well as the governance portal
  • Communicating with various teams to clarify/correct some of the out-of-date information on the Community Portal (makerdao.world)

As always, check out our Transparency Dashboard to see what we’re working on and please join us for our weekly Office Hourson Tuesdays at 14:30 UTC.|


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Data Insights

Data Insights Core Unit Status update

Monthly Updates

  1. The first month of operations was mostly focused on setting up the Core Unit business and technical environment and moving the data and services from Token Flow to dedicated CU infrastructure. Effective 1st November, team members who previously worked for Token Flow Insights became engaged directly by the CU for time spent on CU business (Piotr - 100%, Tomek - 25% FTE).

  2. The technical migration is mostly completed, and we are now switching existing GUIs to new data sources. By the end of the year, we plan to be fully decoupled from the previous environment and operate independently, using dedicated AWS and Snowflake subscriptions.

  3. Once this is complete, the only commercial link to Token Flow Insights will be the provision of data feeds under contract. The CU is able to switch data providers to an alternative supplier if it is deemed by the CU that a superior alternative exists. This can be switched at will - there are no long-term contracts in place with Token Flow Insights in order to maintain flexibility for the CU.

  4. After assessing all options, the CU decided to postpone the incorporation of a distinct legal entity hosting the Core Unit and temporarily operate in a decentralized mode. We plan to reevaluate this as soon as we get a full understanding of the required legal framework and actual costs and risks. Because our initial budget included a one-off amount of 10,000 DAI for incorporation and it was already paid to the CU multisig, we plan to return this to the Pause Proxy using the precedent set by GovAlpha and will add the transaction hash in comments below when this has been completed.

  5. Other things that we delivered in November include:

    • fixing critical bugs and small tweaks in MCD Vaults Tracker
    • delegates status reporting for GovAlpha CU
    • gas consumption reporting for StarkNet CU
    • voting bird’s-eye view for Growth CU
  6. We organized a round of interviews with Core Units that are the biggest consumers of our data to understand their requirements and plans. Based on their feedback, we have prepared the initial roadmap for the next few months. The roadmap is available here and will be constantly updated with current status and new requirements.

  7. The most important next product will be the full history of MCD Protocol system parameters. This dataset will provide a detailed overview of all changes made in any of the general and ilk-related parameters (similar to makerburn.com but with a history and relation to specific spells). The first prototype should be ready before Christmas, and we plan to release it publicly in January.

  8. A few smaller things that we plan to deliver until Christmas are related to the Data API. Under the hood, we are switching to a new API framework that will be easier to maintain and will make life much easier for those that use the existing endpoints.


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Development and UX

November Update

Official forum update coming soon

  1. Releases

  2. Updates

  3. Communication

    • The Governance Portal experienced some brief downtime due to a regression introduced in a recent update. After triaging the issue, we created a post-mortem outlining what happened and mitigation steps.
    • In alignment with our mandate to improve the user experience around governance, our own @0xDeniz has provided his thoughts addressing governance participation and posted this in the forum here: https://forum.makerdao.com/t/improving-governance-participation-rate-at-makerdao/11706
  4. Holiday Time-Off

    • Our team will be off from December 20th to January 2nd, we’ll be back to work on Monday January 3rd. Fear not, we’ll have two team members on-call each day of the holiday break in case any issues arise.

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GovAlpha

Weekly Updates

GovAlpha Q3 2021 Quarterly Review available here.

GovAlpha Weekly Update - 2021-11-12

Hello folks! Wanted to start off with an acknowledgment that I’ve been dropping the ball on the Weekly Updates lately. Wanted to thank @LongForWisdom for staying diligent and his patience with me. They’ll be a bit more at the bottom of this post but wanted to apologize to the community for the recent lack of communication.

Highlights

  • @LongForWisdom is rounding up the work on the Maker Operational Manual. Keep an eye out for our soft launch forum post :slight_smile: ! Special thanks to @Gala for getting this project off the ground.
  • @blimpa is putting together a MIP Editor Handbook that focuses on Onboarding. This will greatly aid in getting more MIP editors onboarded to GovAlpha.
  • We’ve been onboarding @ceresbzns as a GovAlpha contributor. Ceres comes from 1Hive, bringing a wealth of DAO experience and some technical knowledge in SourceCred instances. Say hello next time you see them :wave:

Quarterly Focuses

Delegation

  • Big news this week! Custody platforms have finally added compatibility for MKR Delegation. We expect to see some serious MKR being delegated over the next couple of weeks.
  • Delegate Compensation Trail update below, still on track for our first distribution at the end of the month.

Robustness

  • The Maker Operational Manual coming online is a big step in our goals for more robustness.
  • We’re preparing to onboard more MIP Editors who will offer greater decentralization and redundancy.
  • You might have noticed a new #SourceCred channel in Discord; we have always had a chat with SourceCred, but decided our coordinations could be beneficial to the community and opened up Read access (and emoji reactions :+1: ) to the channel. Currently running a preliminary poll on about instance there.

Internal Developments

  • This week @mkrorbkr took a stab at the Executive Copy and did a great job. Having more members able to accurately draft Executive Copy is a great development for the CU. We look forward to seeing his name on future commits.
  • Thanks to a great call/report from @gov-comms-core-unit, @blimpa has been tidying up the MIPs repo. We have a few action items to unify our communications with the DAO that we will be focusing on this coming week.
  • @Sebix’s PC died :frowning: but we were still able to get some effective work and coordination done. Stay tuned as @Sebix and @prose11 collaborate on a GovAlpha webpage!

Weekly Assignments

External Stuff

  • With the recent poll raising the compensation during the Recognized Delegate Compensation Trail passing, GovAlpha is collaborating with @data-insights-cu to record average MKR voting weight. Distributions will be made to Recognized Delegates at the end of the month.
  • @prose11 met with @Aes to talk about formalizing budget returns. Once this week’s executive is executed, our excess budget will be fully returned to the protocol.

Thanks for checking out our weekly update! I’ll be more diligent in ensuring these keep getting posted every week. As mentioned at the top of the post, I’ve been struggling personally and organizationally. But this week has been good on both fronts, with me creating a new personal task tracker to ensure obligations like this post don’t fall by the waist side.

On the personal side, I’ve been dealing with mental health struggles exacerbated by some familial circumstances. Wanted to drop a link to some Mental Health Resources for both people facing mental health problems of their own and those around them. I was quite fortunate in that my new insurance made seeking therapy fairly easy. This won’t be the case for everyone, but I wanted to plug the importance of reaching out to someone when you’re struggling.

I added this to our update because I don’t think mental health is talked about enough in this space, and I hope me being willing to talk about my struggle publicly might open others up to seek the help they need. We have a wonderful community here at Maker, and our strong network of personal connections means no one should have to suffer in silence.


GovAlpha Weekly Update - 2021-11-19

Quarterly Focuses

Delegation

  • We are soon to be welcoming two new (kind of) recognized delegates to MakerDAO: @GFXLabs (profile) and @JustinCase (profile). I’d like to extend a warm welcome to JustinCase, particularly as the first example of someone new to the MakerDAO community putting themselves forward as a Recognized Delegate.
  • We are also coming up on our first distribution of Recognized Delegate compensation. @mkrorbkr will be taking the lead on coordinating this. We believe we’ve already identified some pain points with the current structure of the trial compensation and will be following up on those, most likely in the new year.

Robustness

  • @blimpa has been continuing to work on an onboarding manual for potential MIP Editors.
  • @prose11 has been handling contributor onboarding, and 1-on-1’s this week.
  • We are continuing to share knowledge within the Core Unit, most recently in the form of writing the executive copy. @blimpa and @mkrorbkr have both taken turns on that in the past few weeks.

Other Stuff

  • The Maker Operational Manual work is still ongoing. The new target is to get it launched on manual.makerdao.com by the end of November. We were able to integrate the awesome budget flow diagrams created by @Petru_Catana from SES; big thanks to them for putting that together.
  • @ceresbzns and @TheExistence have continued to work on a ‘governance-in-other-DAOs’ research report.
  • @mkrorbkr has been taking a more active role in managing signals and delegation in the forum the past week.
  • @LongForWisdom posted the ‘governance over the holiday’ post for 2021/2022.
  • @prose11 has been working on drafting GovAlpha’s MKR Compensation budget.

Weekly Assignments


GovAlpha Weekly Update - 2021-11-26

Quarterly Focuses

Delegation

  • @JustinCase completes his ‘Meet Your Delegate’ meeting and joins us as a Recognized Delegate! This brings the number of Recognized Delegates to 8. This is definitely an improvement, but I’m hopeful that we can push the total into double digits over the next few months.
  • @mkrorbkr has really stepped up the last few weeks to take charge of managing GovAlpha’s responsibilities in relation to delegates. He’s been keeping track of metrics and is going to be taking the lead on the first set of delegate compensation for November.
  • @LongForWisdom spent some time with @tiago of DUX Core Unit discussing and brainstorming ideas for the delegates UI on vote.makerdao.com. The current UI is already fantastic, and it’s largely thanks to Tiago’s efforts on the UI/UX. Thanks for putting up with me, guys!

Robustness

  • Over the last couple of weeks, we’ve been focusing more heavily on sharing knowledge around the executive process, further reducing bus-risk for the CU.
  • @blimpa has spent some time helping identify and squash bugs in the MIPs portal alongside his usual responsibilities helping MIP authors tidy up their proposals.
  • @mkrorbkr been ensuring that there are no errors or issues with delegate tracking and compensation.
  • @TheExistence has been learning how to handle the Maker SourceCred payouts.

Other Stuff

  • @LongForWisdom continues to work on getting the Maker Operational Manual ready for publication. The planning fallacy has been hitting me hard on this one. I’m still moderately confident I can get it up in November, though it may slip until early December. @AstronautThis and @mkrorbkr have been helping too.
  • @prose11 spent some time working with the incubating talent core unit to share some of GovAlpha’s personnel requirements.
  • @Sebix has been working on a website documenting what GovAlpha does in practice. We’ve written about this before in a few places, but we’re hoping to get it all compiled so that we can use it for transparency and onboarding.
  • @ceresbzns and @TheExistence are continuing to research governance in other DAOs and crypto-protocols.

Weekly Assignments


GovAlpha Weekly Update - 2021-12-03

Quarterly Focuses

Delegation

  • The first lot of delegate compensation will be distributed to the executive this week. Going through the process for this has already highlighted a number of weaknesses and issues which we’re looking forward to fixing. See a breakdown and some links here. @mkrorbkr did a great job here getting this sorted.
  • We have a ninth soon-to-be recognized delegate joining us. Welcome to @ACREinvest, you can find their delegate profile here. Having more people consider this role is extremely encouraging and speaks well for the future and quality of delegates at Maker.
  • We spent a little time speaking about where we’re at with respect to delegation in the recent governance and risk call.

Robustness

  • @blimpa been continuing to help get bugs fixed on the MIPs Portal, along with his usual activities spent helping authors make their MIPs as clear and effective as possible.

Other Stuff

  • @ceresbzns and @TheExistence have shared some of the results of their research work on governance in other DAO’s internally. There is still a good bit of polish work before this becomes fit for public consumption, but it looks quite positive so far.
  • Work on the Maker Operational Manual proceeds; we’ve now got domains and such setup, so we’re more or less ready to officially launch once we’ve done a final pass over the content. I was hoping to get to the official launch today but got side-tracked. If anyone wants a preview in its current state, you can find it here.
  • @LongForWisdom is away for the next few weeks; I’ll be back in January! @prose11 will be around, but I’ll be checking in periodically to cover anything very urgent.

Weekly Assignments


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Governance Communications

Bi-Weekly Updates

Maker Governance Review: October 2021 available here.

GovComms Bi-Weekly Update: Oct 30 - Nov 12

Administrative Update

Added Roles Visual Diagram

We added a visual description of the roles between our full-time team members to our public drive. Check it out :point_down:

GovComms Roles Map

Budget Modification

The budget modification proposal SP40 has been Formally Submitted for the November Cycle. The main changes are:

  • Travel figures updated; More accurately reflects expenses by assuming one team-wide offsite for three people and coverage for two people to attend up to three events per year.
  • Salary line item updated; More accurate.
  • Hourly Compensation item updated; More accurate.
  • Operating Expenses item updated; More accurate.

For detailed figures, visit the proposal linked above.

Work Being Done

Since the launch of the CU, we have added a ton to our public drive. Supporting documentation around all our active projects is growing, with project plans/descriptions, metrics tracking, and workflow process docs coming into existence and being iteratively improved upon.

Meetings at Maker, The Call Calendar

We are continuing to formulate a vision for meetings and coordination at MakerDAO. Currently, we have a public call calendar that anyone can subscribe to. We are putting together documentation for what this calendar will be. The vision is to give permissions to select Facilitators and key team members who are leading various initiatives and sub initiatives to be able to schedule public calls with strict invite lists as well as calls with open access. This will be key for improving visibility and feedback opportunities for stakeholders of all types.

Translations

Carrying forward the legacy work of some community development team contributors, our team has continued to fund translations of select publications into Spanish. We held a meeting with the content production team after our former meeting with the contributor team in order to help bridge their work to a Core Unit with the appropriate mandate to house the work. Content Production is piloting an ambassador program that includes translations for content.

Handoff nearly complete :handshake:

Stakeholder Database

We are in the process of reviewing and solidifying a deal with legal counsel that specializes in global tech GDPR compliance; soon after, we will begin work to bring our practices up to a standard that ensures the protection of collected stakeholder data.

Information Output Audit

Thomas has completed a written report of the first findings of the Audit. We shared it prior to our very first Status Update call, which happened Nov 11th, and had a handful of attendance from facilitators and representative team members. The video can be found on our drive here.

The next step for the audit is checking in with each Core Unit Facilitator to capture their feedback on the audit findings. If the Core Units agree with the findings, then the next step will be to finalize the audit and set a timetable for completing each recommendation.

Issue Discussion Calls

We created a draft of the process documentation for coordinating and organizing these calls. The next call is being planned.

Published 10/30/21 - 11/12/21

Maker Governance Review
(Dual effort between MKT-001 & COM-001)

October 2021

Maker Relay
(Dual effort between MKT-001 & COM-001)

#69 Eng | #69 Esp
#70 Eng | #70 Esp

Forum at a Glance

10/28 - 11/4
11/4 - 11/11

Up Ahead

  • Emergency Playbook Work
  • Mandate Refresh
  • COM-001 MKR Comp Package
  • Coordinating the next Issue Discussion Call
  • Next steps for Information Output Audit
  • Monthly MakerDAO CUs update

GovComms Bi-Weekly Update: Nov 15 - 26

Administrative Update

Budget Updated with SP40

Our budget modification proposal, SP40, has been accepted. The main changes are:

  • Travel figures updated; More accurately reflects expenses by assuming one team-wide offsite for three people and coverage for two people to attend up to three events per year.
  • Salary line item updated; More accurate.
  • Hourly Compensation item updated; More accurate.
  • Operating Expenses item updated; More accurate.

For detailed figures, visit the proposal linked above.

One-Time Payment Request

Our request was met with full support from those who voted in the signal request. The next step is to get affirmative results in the on-chain Governance Poll before the payment can be put to an Executive Vote.

Work Being Done

Check out our public drive. Documentation around all our active projects is growing and improving with project plans/descriptions, metrics tracking, and workflow process docs coming into existence and being iteratively improved upon.

Meetings at Maker, The Calls Calendar

As documentation continues to be written and improved on, we are making progress in piloting this initiative. We are beginning to schedule Stakeholder Alignment Meetings on the Calls Calendar. The call coordinator will be listed in the description, so anyone who would like an invite can directly contact that individual on Discord. In addition, an Initiatives, Leads, and Coordination Calls tracker has been created to help align the DAO by maintaining this key information in a single referenceable location.

Emergency PlayBook Progress

Further progress has been made on this initiative. Our team has met with members of the new Immunifi Security Core Unit, IS-001, to align on initiative expectations, synergies, and vision. @psychonaut has partnered with us as a contributor to add to and review the existing documentation. Additionally, work on the actual documentation continues to be in progress until the completed first draft.

MakerDAO People List, now called the Stakeholder Database

We have nearly solidified a deal with legal counsel that specializes in global tech GDPR compliance. We are tentatively planning to begin our work with them during the second week of December. In the meantime, we are continuing to make improvements to the database itself.

Information Output Audit

Thomas has been meeting with Core Unit Facilitators to capture their feedback on the audit findings, methodology, and practice. To finalize this first round of the audit, expectations and timelines are being documented for completing recommended actions.

Issue Discussion Calls

The next Issue Discussion Call is being planned for mid-December, with MKR burn being the tentative topic. More details will be posted soon.

Published 11/12/21 - 11/26/21

Maker Relay
(Dual effort between MKT-001 & COM-001)

#71 Eng | #71 Esp
#72 Eng | #72 Esp

Forum at a Glance

11/11 - 11/18
11/18 - 11/25

Up Ahead

December 2021

  • Emergency Playbook V1 Draft
  • Coordinating the next Issue Discussion Call
  • Monthly MakerDAO CUs update
  • November Governance Review

January 2022

  • Annual Governance Review
  • Maker Relay 2021 refresh
  • COM-001 Mandate Refresh
  • COM-001 MKR Comp Package

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Growth

Growth CU weekly update: October 29 - November 4

Weekly Updates

General Updates

Before the updates: if you attended the maker mixer event in Lisbon, reach out to us to send you a poap :hugs:

Improvements for the launching process of a new product.

Because of the nature of our mandate, where the goal is to help the ecosystem integrate with the Maker Protocol, we have identified the need to improve the onboarding of a new collateral process (new product). These improvements will help us increase awareness of what’s happening in Maker and, at the same time, will tighten our relationship with our partners.

The process to onboard a new collateral -or a new product from our partners PoV- is divided into the following stages:

  1. Review and Agreement.

Using Long’s spreadsheet, we can understand what’s coming next. The list gives us the upcoming executives, helping us define the products to come and their impact on the Protocol.

To give everyone a practical example of how we envision this process, let’s take the latest product launch during the last week, where we onboarded stETH and the D3M to the Protocol.

  1. Internal Coordination.

Although we have forum posts describing these new products, we need to create content that will explain to our community and partners what these new products mean for the Protocol and its impact on the ecosystem. During this stage, we work with @Protocol-Engineering, BanklessDAO, and the @happiness-core-unit to create to explain the new products.

For the D3M launch, @hexonaut created a tweet thread, Growth created another one, and Strategic Happiness worked in a meme. The idea is to bring different explanations of what the D3M is and to reinforce the message.

  1. Partner Awareness

GrowthCU will reach out to various DeFi integrators to explain to them the upcoming collaterals.

In this stage, GrowthCU will support Maker’s partners in integrating the new collateral and with the messaging or adoption campaigns to help them reach their audience with the new product. As some of these integrators are DAOs, we will also be presenting proposals to their community if needed.

  1. Market Awareness

Depending on the stage of the executive, we defined different ways to communicate the new product to the community:

To post as soon the executive goes live:

  • Crypto memes to generate expectation, through defidegen Twitter account

To post after the executive pass and the collateral goes live:

  • A general explanation of what it is, through MakerGrowth Twitter threads
  • Description from the PECU PoV, through a PECU team member twitter account

To post after one of our partners integrated it to have a UI to the new product:

  • BanklessDAO article
  • Partner’s awareness campaign

We will constantly be improving this process and trying to find new actors that could help us increase the reach we currently have (like a PR agency). As always, any suggestions are welcome!

MakerGrowth twitter metrics report

Without access to the MakerDao website, blog, and Twitter account, the MakerGrowth Twitter account is the medium we are using to communicate with the ecosystem. We started posting in June, but since July, we have been following a content schedule and a tone to engage with our audience.

We use our Twitter account to explain what’s happening in MakerDAO, educate people about
about crypto, DeFi, and MakerDAO and to announce the latest actions with our partners.

All the details about our Twitter account performance are here. And thank you, @Corina, @MarianoDP, Tobal, and @Lozadaluis12, for the best Twitter threads in all CT.

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:star2: Star-s- of the week :star2:

Qubit.finance - integrated DAI on both Klaytyn and BSC

Mythical Games now supports payments in Dai in their marketplace via integration with Uphold (which supports Dai). Dai can be used to purchase in-game items in their popular game “Blankos Block Party” (which raised 75M this summer).


Growth CU weekly update: Nov 12-19

General Updates

Multichain strategy

Following PECU’s efforts to have DAI in other chains (Optimism, Arbitrum, and Starknet for now), the Growth team is working with those L2 to engage with their ecosystem lead to understand the existing landscape and identify where the focus areas should be. The three of them are focused on developing their community, attracting projects to build on them, and increasing liquidity.

Real-world Assets

We are seeing more TradFi companies interested in understanding how the Maker Protocol work. With the help of RWF CU, we are creating an onboarding process for these companies to understand Maker and find a way to integrate with the protocol.

Offsite Growth+guests

After our experience working with other groups in Lisbon, we want to try a new format of offsite and open it to the community. We will discuss our priorities with the team during our offsite and define a plan to achieve our objectives as a core unit. We would also like to open this discussion and invite others to create the 1T growth vision.

The offsite will be from February 7th to the 11th in Mexico. The following week some of us will stay in Mexico for then go to Eth-Denver. We need to know how many of you want to join us to make the reservation and start planing the offsite. If you are interested, please send me a DM on Discord or the forum.

:star2: Star of the week :star2:

Stormx app, a browser plugin that allows you to shop at 800+ online retailers and receive crypto cashback on purchases ( dai one of a few rewards), will do a promo with us to drive awareness to their 2mil users that dai is a good “stable” asset to choose for rewards. They will promote via email and in-app and us in Twitter and forum.


Growth CU weekly update: Nov 19-26

General Updates

D3M

Together with @Protocol-Engineering and @Risk-Core-Unit, we started conversations with Aave to integrate D3M in the Aave Arc and AMM markets. We will begin with Arc, and for that, before proceeding with the signaling and the proposals, we have to define with Fireblocks the way to whitelist D3M in that market.

Also, we started working with Compound. They will be putting up a signal request in the Maker forums to confirm that governance wants to proceed.

Institutional interest in Maker

Recently @Hajive participated in the Digital Assets Workgroup, organized by the London Stock Exchange, explaining Maker and how TradFi companies can work together with the DeFi ecosystem. Although we know these processes take a while, we want to be prepared for it, and so, we created a workgroup between GRO, @Real-World-Finance, @collateral-core-unit, @SES-Core-Unit, and @gov-comms-core-unit to improve the onboarding process of these institutional assets.

:star2: Star of the week :star2:

CoinDCX - an Indian unicorn exchange will list DAI by mid-December. They will run a few marketing campaigns promoting DAI between their users.


Growth CU weekly update: Nov 26 - Dec 3

General Updates

D3M on the Aave Arc market

@zxMori posted a proposal in the Aave community to propose whitelisting the D3M and DAI in their Arc Market. Next, we have to discuss with Fireblocks how to whitelist the contract (given that they whitelist institutions) and wait for the proposal to be voted.

DAI liquidity on our Multichain strategy

Recently we had an alarming situation with various projects that want to integrate DAI on Arbitrum but can’t because of its low liquidity. They have to choose between USDC, USDT, or MIM because they can’t wait for their users to bring DAI liquidity to Arbitrum and pay for the gas fees of that transaction.

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Currently, Arbitrum is the L2 with the largest market share (40%) and under Maker’s multichain strategy. DAI is on Balancer in a stablecoin pool, but it’s not on SushiSwap, nor in Curve, which represents a problem for the dApps that need deep stablecoin markets.

Talking with other Mandated Actors, we suppose the problem was the delay in including DAI on Arbitrum, which we decided for security reasons. Because of it, we think it is best to start thinking about strategies that help us increase DAI liquidity in the Networks that we consider strategic (because we may have this problem again in the future).

We are working with other Mandated Actors to find alternative solutions to this problem. Possible solutions are renting DAI liquidity to Market Makers, incentivizing DAI liquidity through rewards, or adding something in the protocol that allows us to deploy DAI liquidity.


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Real World Finance

Financial Report

Financial Report - 2021-11

The financial report for November 2021 is available here.

Summary

Continued positive momentum in the crypto markets led to a new all-time high in risk-weighted assets locked as collateral, driving higher lending and protocol income. Net protocol income was up 140% month over month, driven by a 90% ($4.7M) increase in net interest income. On a year-over-year basis, net interest income increased 870%.

  • Recurring income increased to $7.77M (+132% vs. last month), driven by a 90% increase in net interest income
  • Dai risk ratios decreased unfavorably due to a 23% increase in risk-weighted assets and $5.4M Dai used on burning MKR. The leverage ratio fell by six bps to 0.76%, and the CET1 ratio fell to 1.23%, a 22 bps decrease
  • USDC dependency continued decreasing from 42% to 37% of assets, and the peg remains safe as 37% of our assets as liquidity reserves (fiat-backed stablecoins)
  • DAI growth reversed momentum on Arbitrum, as the market saw an 8% decrease from the prior month (-18% for Dai). Dai continues to maintain the market lead on Optimism, but LUSD has just entered the market and quickly taken the second most market share with $27M LUSD minted on Optimism

Selected slides

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Harbor

Harbor Update November 2021

  • Harbor chooses Codat as an integration partner to access real-time users’ data for risk monitoring and transaction approval on the HarborTrade platform. These integrations will improve our operational efficiency and workflow to provide users with a more seamless experience on our system by interacting with client accounting and ERP systems.

  • Harbor has executed the world’s largest trade finance transaction funded with a stablecoin to provide working capital for a global commodities trader. The over $2 million transactions are the first and largest trade finance program of its kind.

  • HTC2 was open for last month but was quickly oversubscribed. Currently, there is a capacity for roughly 900,000 DAI to invest in DROP. We are also accepting investors to subscribe to the TIN tranche.

  • Origination continues to be strong during the month of November as corporates evaluate their working capital strategy for 2022.

Pool Status

Pool Value: 4,142,278 DAI

Debt Ceiling Utilization: 2,034,867 DAI


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New Silver

New Silver November 2021 Update

Monthly Updates

Dear Community,

Another very busy month. I wanted to provide a bit of my view on the state of the real estate market in the US. It has not changed significantly from the last month; it remains a seller’s market, prices are climbing, and homes are getting less affordable. This cycle can not continue forever, and we believe there will be tapering in 2022. This could be accelerated by a rate hike, however, in our view, central bankers are being very careful here, and we will likely see a small increase, which should cool off the market some, but there is a lot of pent up demand from first-time homeowners, who are a perfect “exit” from a flip. We are continuing to focus on suburban markets and markets where there are job opportunities, though, with the remote-first model, this is all changing quickly. America remains a place where people want to move, live and work, and housing will continue to be in demand. Here is a report from Realtor.com on 2022 projections.

We are working to improve our systems and processes and are going to share a new report hopefully next month; the report should provide more color and transparency on the loan book. I also know that Centrifuge is busy reworking the legal setup, and we hope to continue to grow with MakerDAO. In the near future, we will pilot a “note purchase” program, essentially adding a wholesale business to our existing origination business. We will aim to pilot purchasing a closed loan from another loan originator; we will, of course, fully underwrite it to make sure it conforms to our credit box. This could be a potential way to expand the portfolio sustainably. I will provide more on this in a separate post once we have a bit more info.

We have also completed another month of testing a new way to value some of the collateral (described in more detail in September update), and the results met our expectations. You can review the results for properties that fit the profile for this, with both of the appraised values, conditions based on TruePic images and HouseCanary values based on the condition, both the median and the average are well under normal ranges. We are satisfied with the results and will begin applying this method to selective properties (as described in the previous post) going forward.

Loan Originations in Tinlake

We originated a total of $7.8mm total; however, due to capital constraints in the pool, a smaller number was added.

New Loans:12
New Loan USD Volume: $2.8mm
Average Originated Interest Rate: 8.8%
Average Tinlake Finance Fee: 6.17%
Average Loan Amount: DAI 234,632
Average Loan to Value: 67%
Average FICO score: 720
Average Term: 12 months
Loans Paid Back: 6
Current MakerDAO Debt Ceiling: $20mm with about $10.6mm used

**data provided is based on loan origination date, not finance date

Loan Performance

90+ day late: 0
Forbearance: 0
Foreclosure: 0

Technology

Working on a real-time report to provide more transparency into the loan portfolio. Also redesigned our web app; this will be live soon.

People

Please welcome our brand new Head of Capital Markets, John Coury (@John_NewSilver ), he comes to us with tons of real estate and private equity experience, though he is new to DeFi, he has already learned a lot and is looking forward to participating in the community.


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Risk

Risk Core Unit Month in Review: November 2021

Monthly Updates

This post summarises the tasks, work, and activities of the @Risk-Core-Unit for the month of November. Our primary focus this month is outlined below.

This month we have investigated three new vault types, a WBTC-B vault, a PSM-GUSD-A vault, and a WBTC-C vault. The WBTC-B risk assessment was published on November 3 and onboarded on November 22, after the executive passed. The PSM-GUSD-A risk assessment, as a response to the GUSD PSM proposal from Gemini, was published on November 10. The executive containing the PSM-GUSD-A passed on November 26. Finally, proposed risk parameters for a WBTC-C vault were published on November 18. These were also part of the executive vote, which passed on November 26.

We have introduced a new initiative that aims to track DAI supply growth and risk metrics. These metrics are meant to be included in the KPI Framework as part of the Monthly Strategy Review. We have also included these metrics in the MakerDAO Risk Dashboard website.

A Dust Analysis and Signal Request was posted on the forum. The Signal Request queried the support for increasing the dust parameter for different Maker vaults. The poll closed on November 25. The results can be seen here. There are currently two active on-chain polls on increasing the dust parameter: (i) increasing the dust parameter for ETH-B, and (ii) increasing the dust parameter for all vault types excluding ETH-B and ETH-C.

Several proposals have been posted this month, including (i) increasing debt ceilings for different vault types (GUNIV3DAIUSDC1-A, Staked ETH, and Aave D3M), (ii) decreasing the target borrow rate for Aave D3M, (iii) auction throughput parameter adjustments, and (iv) offboarding collateral parameters. More information about these proposals is set out below.

Two Risk Core Unit members, @Primoz and @monet-supply, are part of the MakerDAO Open Market Committee. Due to the increased use of WBTC as collateral, the committee proposed to increase the SF from 2.5% to 4% for WBTC-A and from 5% to 7% for WBTC-B in a mid-month parameter changes proposal. These changes were part of the executive that passed on November 20. The end of month parameter changes proposal includes proposed changes such as: (i) increasing the stability fee for ETH-A, ETH-B, LINK-A, MANA-A, UNI-A, GUSD-A, and Uniswap V2-LPs, (ii) decreasing the stability fee for GUNIV3DAIUSDC1-A, and (iii) increasing the debt ceiling to 2000m and increasing gap to 80m for WBTC-A. The proposed changes are currently included in an on-chain poll, and if passed, will be included in the executive vote on December 3.

Finally, several updates and improvements to the MakerDAO Risk Dashboard were undertaken, such as: (i) improvements to the AAVE monitoring dashboard, (ii) an improved vault protection score model, and (iii) the option to search vaults by user wallet address/vault id. More information about these updates is set out below.

This is the fourth monthly summary published by the Risk Core Unit. To read last month’s summary, click here. We will continue to update the community on a monthly basis going forward. We value any questions, specific requests, or suggestions regarding these updates. Please add any comments below or get in touch directly with members of the @Risk-Core-Unit.

Collateral Onboarding Risk Assessments

Other Analyses

Signal Requests

Proposals

MakerDAO Open Market Committee

Community Engagements on the Maker Forum

Maker Dashboard

  • AAVE monitor dashboard MakerDAO Risk Dashboard | Block Analitica We are now tracking main AAVE wallets. We also track users’ positions inside AAVE and check which assets are backing DAI and how much there is real DAI borrow/supply.

  • Improved vault protection score model
  • All vaults are now also on one page MakerDAO Risk Dashboard | Block Analitica
  • Option to search vaults by user wallet address/vault id
  • Lots of other small improvements and bug fixes

Pending Work

  • ALM Framework
  • Compound D3M Risk Assessment
  • Add more DeFi protocols and rates to the DeFi section of the Maker Risk Dashboard
  • Research on D3M alternatives
  • D3M Parameters Adjustment Signal

To read more about previous work and engagement from the Risk Core Unit, please visit our forum archive, where we document all relevant topics and discussions that the Risk Core Unit participates in on the Maker Governance Forum.


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Sidestream Auction Services

SAS-001 Roadmap, Contact and Links

Roadmap, Contact and Links

Here’s an overview of ways to get in touch with us, see and contribute to our roadmap etc.

Roadmap

  • We follow a two-week sprint cycle with the goal to release at the end of each sprint. The release notes will be posted every second Friday to our forum section
  • To see what we are building next, you can check out our public roadmap
  • Go here for more details on how the roadmap works and how to participate

Contact

  • Get in touch with us via:
    • Our public discord channel - #sidestream-auction-services-public - on the MakerDAO Official Discord
    • Our forum section

We also will start sharing more ad hoc information on our Twitter Account soon.

Links

  • Web tool for collateral auction participation can be found here
  • CU Web Presence can be found here
  • Transparency Reports can be found here
  • Roadmap can be found here

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StarkNet Engineering

Starknet wormhole implementation updates

References

Sentence summary

This post provides references to the deliverables of phase I work (github, audit) and more context to the subproposal MIP40c3 which proposes a budget extension for the Starknet Engineering core unit to implement on Starknet the wormhole design put forward by the PECU. It includes building the necessary components to enable the L2->L1 fast withdrawal and the L2 <> L2 teleportation; we plan for a delivery respectively in April and July 2022.

Introduction

PECU’s post in May opened the discussion about the role of Maker in a complex and fastly growing multi-chain ecosystem. As Ethereum gas fees are becoming prohibitive for a large number of use cases on Ethereum, users are pushed to use L2 and other scaling solutions, hence making it a priority for DAI to be easily accessible and usable on those chains.

In parallel, user experience in the multi-chain ecosystem is still immature, particularly when it comes to moving funds around the ecosystem across domains. The wormhole design lays out a design that would facilitate moving DAI across domains, and potentially making DAI the easiest token to transfer across domains.

The wormhole design introduces two main user workflows: L2->L1 fast withdrawals, and L2 → L2 wormhole (also called teleportation). PECU has been designing the components for the L2->L1 fast withdrawals for an expected delivery in Q1, and the components for the teleportation for an expected delivery in Q2.

In this context, SECU already built the bridge which is a key component of those designs. The bridge audit report should be available by mid-December. The Starknet Engineering CU is asking for a budget extension (MIP40c3) to build the fast withdrawal and the wormhole in parallel, for a delivery timeline aligned (or slightly behind) with that of PECU, i.e., around April and July 2022 respectively.

Motivation

Why do we want to expand the Maker protocol behind Ethereum?

Gas fees have been exceptionally high lately, increasing more than 20x between June and October 2021, hence putting a lot of pressure on users to migrate to other domains (L2 or cheaper L1s). As users are expected to use new domains more and more, it is crucial for Maker to establish footholds on these platforms - in order to keep DAI highly usable and interchangeable among them.

Furthermore, operating on a scaled and fast environment comes with its own set of unique opportunities.

  • Reducing costs and increasing speed for certain modules, allowing to rethink the logic of some components of the module (e.g., Oracle, Liquidation)
  • Increasing the collateral types available. In the past year, Maker had to off-board a number of collateral types for profitability reasons. The cost of operating was exceeding the revenues yielded by the collateral type. In a cheaper environment, there is an opportunity for Maker to make those collaterals profitable as well as on-board L2 native tokens as collateral

Leveraging Maker’s strength to make DAI more attractive

While competing lending protocols have rushed to build pools onto cheaper domains, Maker has been taking a slower approach to develop the wormhole design that leverages Maker’s unique position to make DAI the most used stable coin across the ecosystem. This constitutes a preliminary step before allowing users to mint against collateral on new domains.

The wormhole design proposed by PECU leverages Maker’s battle-tested oracles as well as its ability to mint DAI to facilitate the user experience of moving DAI around the ecosystem. Solutions like the Hop protocol are using a combination of bridges and AMMs. Not relying on AMMs means more reliability and predictability, and less fees. Using oracles allows for teleportation, which means almost instant availabiilty of DAI on the target domain.

What does it mean to expand Maker

For DAI to become the fungible token to facilitate liquidity flows and trade in and across ecosystem, the following conditions need to hold true:

  • It must be possible to transfer DAI between L1 and L2 without multiple version of DAI (DAI bridge)
  • It must be possible to withdraw funds from L2 to L1 quickly (Fast withdrawals)
  • It must be possible to use and transfer DAI across multiple L2s (DAI wormhole)
  • It must be possible to mint DAI using L2 collateral type (MCD on L2)
  • It must be possible to do all of the above within accepted risk/securities boundaries (Risk assessment)

Currently, the PECU, Oracles CU, and SECU are focused on enabling the fast withdrawals and the wormhole.

Wormhole design

The intent of this section is to provide all the readers a high-level understanding of the wormhole design, it is combining information from the post “Introducing Maker Wormhole” as well as discussions with PECU and internal design documents. It is not a holistic description of the design and all the edge cases. Technical readers who are familiar with the matter can skip to the next section.

The purpose of the wormhole design is to enable DAI fast withdrawals to L1 and teleportation from source domain to target domain. Domain in this context can designate a L2, a sidechain, or a L1. In the regular case, withdrawal delay can be one week for Optimistic rollups, down to 3 to 8 hours for zk-rollups like Starknet. The wormhole design can make those in minutes. You will find below a quick summary of the fast path (happy flows).

L2 → L1 Fast withdrawals

Walking through the fast path of the fast withdrawal workflow in the wormhole design:

  1. User submits a fast withdrawal request to the L2 DAI bridge (initiateWormhole) to withdraw 100 DAI. DAI on L2 is burnt
  2. User gets an attestation that they burnt DAI and requested a fast withdrawal to L1 (off-chain oracle)
  3. User provides attestation to WormholeOracleAuth contract on L1 that verifies that their attestation is correctly signed by the Maker Oracle Feed. User mints 100 DAI on L1 from WormholeJoin as long as the wormhole debt ceiling is not reached, the debt outstanding to be repaid is 100 DAI

Periodically, a keeper calls Flush on L2 DAI bridge which sends a L2->L1 message to release the DAI from the L1 bridge contract and pay back the 100 DAI debt. In the case where the Oracle Network is not available for any reason, the user can go through the slow path by calling the L1 bridge (using the event that was emitted when calling initWormhole) to finalize the withdrawal via the wormhole router.

Figure 1: L2 → L1 Fast withdrawal

L2 <> L2 teleportation

Walking through the steps of the fast path of the teleportation workflow from L2A to L2B:

  1. User submits a teleportation request to the L2A DAI bridge (initiateWormhole) to withdraw 100 DAI. DAI on L2A is burnt.
  2. User gets an attestation that they burnt DAI and requested a fast withdrawal to L1 (off-chain oracle)
  3. User provides attestation to WormholeOracleAuth contract on L2B that verifies that their attestation is correctly signed by the Maker Oracle Feed. User mints 100 DAI on L2B as long as the L2B debt ceiling is not reached. The debt outstanding to be repaid is 100 DAI
  4. Periodically, a keeper calls Flush on L2 DAI bridge which sends a L2->L1 message to release the DAI from the L2A bridge contract on L1 to the L2B bridge contract on L1 via the wormhole router
  5. Similarly to a deposit, DAI is now locked in L2B bridge on L1, DAI is minted on L2B and used to pay back the debt on L2B

Similarly to the fast withdrawal workflow, in case of oracle failure, the user can go through the slow path by directly calling the L1 bridge. The slow path timing depends on the L2. For Starknet it will be at maximum a few hours.

Figure 2: L2 <> L2 teleportation

Starknet wormhole implementation

Roadmap

The Starknet implementation will be done in parallel of the PECU’s implementation on EVM-compatible chains. The PECU, Oracles CU, Risk CU, and SECU will collaborate on the technical implementations as well as the risk parameters definition for each domain.

The wormholing requires the MCD Vat and other related contracts to be built on L2, which prepares for phase III (minting on L2 with collateral). Maker will benefit from building the wormhole design on two L2s in parallel to realize the value promised by the design and for end-to-end tests purposes.

Important differences between Starknet and ORs

This section focuses on the differences between ORs and Starknet that may introduce wormhole implementation specificities.

State update frequency: Starknet state update frequency on L1 is currently every few hours. The update frequency should be reduced to less than an hour towards the end of 2022. Optimistic rollups typically have a one week period before a state update is final. The main difference in user experience is that the slow path in the fast withdrawal flow would be much faster with Starknet than with other rollups.

Trusted Finality: With ORs, provided the existence of verifiers (and existence of the fraud proof mechanism), all the transactions present in the canonical transaction chain (CTC) are included with 100% certainty in the next state update. Hence, in that scenario, a non-malicious and non-corrupted oracle reading from the CTC can provide attestations with 100% reliability that a wormhole request will be included in the next state update. Note that Optimism for example does not have fraud proofs implemented at the moment, hence the statement above does not hold true yet.

With Starknet, the transactions are final only when they are submitted to L1. However, mechanisms are being developed by Starkware to assure that a transaction will be included with certainty in the next batch, assuming that the sequencer(s) are rational agents. We refer to this method as “checkpoints”, and involves sequencers posting collateral and committing to a sequence of transactions to include in each next batch.

Decentralization: Starknet is planning on starting the implementation of its decentralization plan before Q3 2022. Anyone could then become a sequencer. The decentralization plans of different ORs vary yet are less aggressive than that of Starknet.

Risk management

Risk of minting unbacked DAI

In the wormhole context, minting unbacked DAI means minting DAI from a wormhole vault such that the underlying debt will not be repaid. In such an event, MKR holders would directly be hurt because the debt would be queued as bad debt. There are two main risk factors that could lead to minting unbacked DAI:

Malicious oracle: If a malicious oracle provides a false attestation, the user could mint DAI out of thin air from a custom vault which won’t see its debt repaid. The oracles are reading directly from L2 nodes, they are not providing signed prices from exchanges like the price oracle.

Trusted Finality and malicious sequencer(s): Transactions on StarkNet are considered final only when a proof attesting their correctness is published on L1, and the state is updated. However, waiting until a proof is published on L1 for the fast withdrawal (or teleportation) defeats the purpose as the user could just perform a regular request within this timeframe.

This means that the Oracle is exposed to attack from StarkNet’s sequencer ( and after decentralization - sequencers) where the sequencer(s) would “lie” to the Oracle about some fast withdrawal request that they are about to include. After the Oracle provides the attestation to the user, the sequencer(s) would exclude the request from the stream of transactions they are actually proving, practically executing a double spend attack.

Risk of unacceptable user experience

The wormhole users have expectations of a fast and seamless experience. Providing an experience that’s worse than the regular withdrawals is a reputational risk for Maker. Censorship and oracle failure are the main risk factors here.

Oracle infrastructure: In case oracles are down (or maliciously non-responsive to a single user), users would not be able to fast withdraw (or teleport) at all. The slow path being more cumbersome that the normal path (without wormhole), it would make for a very negative user experience.

Censorship by StarkNet Sequencer(s): In case the user isn’t able to push their request (or subsequent calls) as a StarkNet transaction due to being censored by StarkNet’s sequencer(s). The censorship risk exists for the following calls: initiateWormhole (on source domain), mint (on target domain), flush (on source domain), settle (on target domain).

Risk remediation

Starknet risk remediation

Starknet is bound to evolve over the next year. Upgrades mitigating the risks mentioned in the section above are being planned.

Fast Finality: StarkWare is currently working on guaranteeing an intermediate-level of finality that would be established a few minutes after the transaction is received. The design is still being discussed, but for example it could rely on high economic incentives to the sequencer to prove the sequence of txs it committed to (other mechanisms in addition/instead this example are considered as well). Such kind of enforcement will make the double-spend attack by the sequencer irrational for reasonable amounts of DAI transfers. This feature is expected within 6-9 months.

Decentralization: Within 9 months StarkNet is planning to be fully decentralized, meaning that anyone (including the censored user) could become the sequencer - eliminating the censorship risk and its associated negative impact on the user experience.

MakerDAO risk remediation

This list of risk remediation is not exhaustive. The Risk CU will work with PECU, Oracles CU, and Starknet Engineering CU to define risk parameters for each wormhole domain.

Oracles redundancy: Oracles failure being the most important risk factor, for each rollup multiple oracles will read from multiple nodes with a different underlying infrastructure (different providers and methodologies), hence reducing the single-point of failure risk.

Wormhole source domain ceiling: The maximum amount of DAI that can be minted based on an oracle attestation from the source domain. This ceiling directly caps the risk of an oracle providing a false attestation on a given domain.

Wormhole debt ceiling: The maximum amount of DAI that can be minted on Ethereum domain. It represents the amount of DAI that can be used at the same time for fast withdrawal L2->L1 purpose.

DAI bridge limit: Like for other domains, the Starknet bridge will have a DAI bridge limit defined by the Risk CU. DAI bridge limit represents the maximum amount of DAI in the official bridge (i.e., in the L1 escrow contract). If Starknet was to go down, it is the maximum amount of DAI that MakerDAO would need to redistribute to users on L1 through the exit mechanism.


For more November updates, check out the MIP40c3-SP47: Core Unit Budget (SNE-001) - Phase II: StarkNet Fast Withdrawal and Wormhole


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Sustainable Ecosystem Scaling

Weekly Updates

SES Updates - 04.11.2021

Incubator News

Immunefi Security Core Unit and Sidestream Core Unit MIPs have entered Formal Submission.

SES Weekly Status Update Spotlight: Project Sandbox Update

Project Sandbox aims to design an improved architecture for the Maker Protocol that enables parallel smart contract development. Team Lead @Wouter from SES will share an update on the status of the project, discussing the design considerations, risk management and next steps for the team.

Add the SES Status Update Call to your calendar: November 5, 2021 11:30 AM

Project Focus

:zap: Project X-Ray has published their cross-industry benchmarking study, focusing on best practices in developer awareness, onboarding, and retention. Explore the research for yourself at ses.makerdao.network/xray.

:zap::zap: We need your help to support our project! Share our survey to help us gain insights.

:loudspeaker: SES also welcomes Sarah Doll - a media and online presence expert - as a grant recipient. Sarah will help SES with building a robust and inviting online presence for SES.

Contacts

Links


SES Updates - 11.11.2021

Incubator News

SES Weekly Status Update Spotlight: Sandbox Update

The Tech Ops Incubation team will present their proposed core unit on SES’s Weekly Status Update call this Friday.

Add the SES Status Update Call to your calendar: November 12, 2021 10:30 AM

With the Community

We have two calls planned for next week:

And one future call planned in December:

  • 15.12 :rocket: CULPS: TechOps @TechOps-team

Project Focus

:loudspeaker: Project Bullhorn has soft launched the SES Blog. Our first two posts are from Project X-Ray and Chaos Labs. Find our blog at SES.MakerDAO.network/blog

:moneybag: The SES Grants Pipeline is filling! Additional Research & Scholarship grants are in the works and will be announced soon.

Quick Updates

  • @lollike joins the CES Core Unit on Monday! We will miss him and are excited to continue working with him in his new role!

Nikolaj joined Maker out of passion for crypto & blockchain tech. He said that work at the innovation lab at one of the largest fintech companies in Nordics was not hard on enough, so he joined Maker.

Nikolaj has been a joy to work with providing technical expertise and structured, strategic support. He took initiatives in designing the incubation program and did lift a mountain of project management work with various incubee teams.

Plus he is a nice person, great teammate and pleasant to be around. In one sentence, Nikolaj is an expert we will miss at SES.

We are glad to see him stay in the Maker Ecosystem and look forward to collaborating with him in his new role at CES!

MakerDAO was named as a strategic partner and Lenkla took the initiative to coordinate the airdrop and direct the tokens to the Maker Protocol Pause Proxy. Maker received 46,296.30 ENS tokens (currently valued at over 2.5M DAI). Thank you!


SES Updates - 18.11.2021

Incubator News

SES Weekly Status Update Spotlight: Real-World Sandbox Report Preview

Luca Prosperi, @luca_pro will present a preview of the Real-World Sandbox report on this Friday’s SES Status Update Call. A full discussion of his report will be facilitated on SES’s newest community call next Wednesday 24.11: Maker Explorer

Add the SES Status Update Call to your calendar: November 19, 2021 10:30 AM

With the Community

:toolbox: CULPS: Immunefi

:clapper: Recording Live!

:rocket: CUT: Radicle.xyz

:clapper: Recording Live!

:earth_americas: Announcing Maker Explorer!

This is a new series that SES is launching focusing on exploring real-world assets. We will host Luca Prosperi as he presents his findings funded by SES Research Grants.

Learn more here.

Add Maker Explorer to your calendar here.

:rocket: 15.12 CULPS: TechOps

Watch for the forum post coming soon!

:man_judge: 15.12 LexMaker: Dao Cooperative

Watch for the forum post coming soon!

Project Focus

:see_no_evil: DAO Budget Transparency

SES has published the first tool in support of improving DAO budget transparency. Our interactive MIP Map presents Core Unit budgets in a living tool, with updated links to explore streaming payments and transactions on chain. Read more about it here.


SES Updates - 25.11.2021

Incubator News

  • Immunefi Security Core Unit and Sidestream Core Unit proposals have passed and join MakerDAO as its newest two Core Units!
  • Maker Talent Core Unit and Tech Ops Core Unit are targeting publishing their MIP by 8.12.

SES Weekly Status Update Spotlight: Scholarship Grant Update

Colby Anderson, will present a project update on his scholarship grant focused on governance and range polling.

Add the SES Status Update Call to your calendar: November 26, 2021 10:30 AM

Grants Spotlight

  • Project Real-World Sandbox: @luca_pro has presented his findings from his 5 week research grant. His full report (currently in status: Draft for Comments) can be found here. A recording of his presentation to the community on Maker Explorer can be found her1.
  • Colby Anderson @colby is an SES scholarship grant recipient whose work focused on governance and range polling. An update on this work is ready, and will be presented to the community Friday 26.11. Join us for the SES Weekly Update to watch Colby present his latest update.

With the Community

:earth_americas: Announcing Maker Explorer!

:clapper: Recording Live!

:rocket: 15.12 CULPS: TechOps

Watch for the forum post coming soon!

:man_judge: 15.12 LexMaker: Dao Cooperative

Watch for the forum post coming soon!


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Other Teams

Delegates

Delegate Round-up - November 2021

Introduction

Apologies for the delay in getting this posted this month. I will try and make sure it’s up in a more timely fashion moving forwards.

Welcome to the second edition of The Delegate Round-up. The Delegate Round-up aims to provide an overview of the Recognized Delegates operating within Maker Governance. It also serves as a one-stop forum post where members of the Maker Community can monitor how Recognized Delegates are performing.

The Delegate Round-up is a new initiative from GovAlpha. If there is anything else you would like to see added, please send me a message or leave a comment below.

November has seen some changes within the Recognized Delegate landscape. We welcomed three new Recognized Delegates in @ultraschuppi, @GFXLabs and @JustinCase. We also saw Field Technologies, Inc. end their time as a Recognized Delegate within the Maker Protocol. Gauntlet (@inkymaze) received their first delegated MKR - becoming active as a Recognized Delegate. We also saw some redistributions of previously delegated MKR.

November saw the first time that a Recognized Delegate opposed a MakerDAO executive vote when @MakerMan opposed the 5th of November Executive Vote. The rationale for this decision can be seen here. For clarity, GovAlpha supports the right of Recognized Delegates to oppose Executive Votes. For delegate tracking, this was counted as participating in this Executive Vote.

November was also the first month included in the Delegate Compensation Trial - a separate post covering the DAI distributions related to the Delegate Compensation Trial has been posted here.

Recognized Delegates

At the end of November, we had eight active Recognized Delegates. In descending order of MKR delegated on the 30th of November, these were:

Delegate Delegated MKR Monthly Change
Flip Flop Flap Delegate LLC 32,860.61 +8,957.38
ultraschuppi 20,283.58 +20,283.58
Feedblack Loops LLC 10,102.26 No change
MakerMan 5,071.15 +9.40
monetsupply 5,039.34 -100.00
Gauntlet 3000 +3,000.00
JustinCase 34.26 +34.26
GFX Labs 5.02 +5.02

Recognized Delegates Visualized

bar chart showing MKR delegated to each Recognized Delegate

pie chart showing relative vote weight of Recognized Delegates

Delegate Metrics

GovAlpha tracks metrics that monitor Recognized Delegate performance. These are useful to both current and prospective delegators in gauging how active Recognized Delegates have been. The metrics currently tracked for Recognized Delegates center on Participation in on-chain voting and communication by Recognized Delegates regarding their voting choices.

These metrics can be seen on the delegate cards on the voting portal. In addition, a further breakdown of the participation metric is available for each delegate on their pages on the voting portal - here is a link to Flip Flop Flap Delegate LLC’s metric page as an example.

Participation

For Participation, a score of 100% would mean that a Delegate has voted in all possible polls since they started their role as a Recognized Delegate. GovAlpha tracks Participation in Governance Polls and Executive Polls separately and a combined overall participation rating.

As of the end of November, the Delegate Metrics for Participation were as follows:

Delegate Name Poll Participation Executive Participation Overall Participation
Flip Flop Flap Delegate LLC 100% 100% 100%
ultraschuppi 100% 100% 100%
Feedblack Loops LLC 88.76% 100% 90.10%
MakerMan 91.36% 72.73% 89.13%
monetsupply 74.42% 50.00% 71.43%
Gauntlet 0.00% 0.00% 0.00%
JustinCase 100% No Data 100%
GFX Labs 100% 100% 100%

Communication

For Communication, GovAlpha tracks how Recognized Delegates have communicated their voting decisions. Recognized Delegates are rewarded with a higher score for providing reasoning for their voting decisions. For example, a score of 100% would mean a Delegate communicated all of their voting decisions AND gave reasons for reaching these decisions. On the other hand, a score of 50% would indicate a Delegate communicated their decisions but did not provide any reasoning for these decisions. Their scores for each vote are combined to give an overall communication rating.

At the end of November, the Delegate Metrics for Communication are as follows:

Delegate Name Overall Communication
Flip Flop Flap Delegate LLC 100%
ultraschuppi 100%
Feedblack Loops LLC 98.35%
MakerMan 92.07%
monetsupply 77.14%
Gauntlet No Data
JustinCase 100%
GFX Labs 100%

Executive Votes

By looking at how long it takes for an Executive Vote to pass, we can infer whether or not the Recognized Delegates are helping streamline the Governance Process.

We have already covered that one of the Recognized Delegates opposed an Executive Vote this month.

In November, the Governance Facilitators posted four Executive Votes to the voting portal. All four of these votes passed successfully.

Executive Vote Date Posted Date Passed Duration (Days)
Parameter Changes, Core Unit Budget Distribution 2021-11-05 2021-11-08 3*
Parameter Changes, Return Unused Budget to the Surplus Buffer 2021-11-12 2021-11-14 2
Onboarding WBTC-B, Increasing WBTC-A Stability Fee, Change of Covenants for P1-DROP, Offboarding Collaterals 2021-11-19 2021-11-20 1
Onboarding New Vault Types, Parameter Changes, and Core Unit Budget Distributions 2021-11-26 2021-11-26 0
  • This vote was opposed by one of the Recognized Delegates.

Delegate On-boarding

At the time of writing, GovAlpha has received one new application to become a Recognized Delegate:

@ACREinvest have thrown their hat into the ring, and their delegate platform can be found here.

There will be a Meet Your Delegate call with AcreInvest hosted by @prose11 on 2021-12-08 at 15:30 UTC if anyone would like to hear from our newest Recognized Delegate.

If anyone else wants to hear more about becoming a Recognized Delegate or has any questions, please reach out to one of the GovAlpha team. We will be happy to help.

To review the Recognized Delegate requirements, please see this forum post.

cc: @GovAlpha-Core-Unit @gov-comms-core-unit @Recognized-Delegates


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Makerburn

Makerburn updates, november 2021

Monthly Updates

Hey all!

Here’s a bunch of stuff that’s changed or added to makerburn.com this past month.

Debt ceilings

I’ve spent a lot of time lately trying to put more focus on debt ceilings and our tendency to hit them, stopping growth - not only through updates to makerburn, but also here on the forum (1, 2).

To that end, I’ve also created a warning on the makerburn dashboard.

2021-11-08_14-47

A click or tap on this warning will take you to the collateral list where a “capped” filter is pre-applied to single out the relevant collateral(s).

2021-11-08_14-47_1

This filter may also be applied manually, and there is an option for “maxed” collaterals as well.

2021-11-08_14-48

There is also a warning on collateral detail pages.

2021-10-21_23-00

And a new link to @lollike’s web app 1 in case you want to help out and trigger a DC increase yourself. Colouration shows when this is possible or critical.

2021-11-08_14-53_1

New collateralization doughnut

A new doughnut chart on the bottom of the collateral list page show how much DAI is generated from each type of collateral. ETH, for example, in this case counts the generated DAI total from ETH-A, ETH-B and ETH-C. Note that this chart has filters from the above list applied, so it won’t necessarily show data for the entire system.

2021-11-08_14-53

Chart option for P/E estimate

Default selection also changed to profit estimate, P/E estimate (price over earnings) and fee income.

2021-11-08_15-23

MakerDAO growth page

In case you’ve ever wondered how MakerDAO is growing but don’t want to read a chart, Makerburn’s got you covered. Only 9x growth in DAI supply this past year when the year prior it grew by 10x. Woe is us :disappointed:.

2021-11-08_14-59

D3M support

Support for the cool new Aave Direct Depost Module (D3M) has been implemented. The “unclaimed interest” counter accrues live based on the current apy of DAI deposits on Aave.

2021-11-08_15-29

And finally…

Introducing Makerburnbot

5tnmrq

Makerburnbot does his best to provide Discord users with cool updates as they happen.

2021-11-08_15-01

Right now, he will post when large mints happen, when MKR is burned or when new liquidations are triggered. A “large mint” means that the amount of DAI generated exceeds 0.05% of the total system supply (4.33M DAI at this moment when total supply is at 8.67B) or 1% of that collateral’s supply (for example 1.5M for ETH-B which is at 150M).

Do you think the bot is too spammy? Maybe it should have a lower limit of 1M for new mints? Or maybe you’d even like to see more updates? Let me know in the comments!

Other stuff

There has also been a lot of minor improvements, like a 2 year duration option for the chart, but I think this post is already long enough.

As always, if there is something you’d like to see changed or added, please don’t hesitate to reach out.

Thank you all for using the site :slight_smile:


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PPG

Mid-month Parameter Changes Proposal - PPG-OMC-001 - 2021-11-10

Bi-weekly Proposals

Parameter Proposal Group: MakerDAO Open Market Committee

Authors: @Primoz, @LongForWisdom, @Monet-supply, @SebVentures, @Akiva, @hexonaut, @ultraschuppi

Overview

DAI minting from volatile assets has been accelerating in the last weeks. We are probably going to hit the Maximum Debt Ceiling of WBTC-A of 1.5 B DAI (increased in the last Mid-Month Proposal) in a few days. This debt-exposure is reaching an unhealthy state so we propose a few changes to slow down a bit.

Risk Overview

@Risk-Core-Unit suggests the increase of risk compensation for WBTC vaults for a few important reasons:

  • Despite WBTC-DAI on-chain liquidity not being as bad, it is still about 3x worse than ETH-DAI liquidity. What concerns us is the fact that about 50% of existing WBTC is used for leverage across three largest DeFi lending platforms. In a price shock scenario, additional WBTC liquidity might potentially need to be sourced by market makers, which would need to rely on a longer than expected redemption cycle. This potentially means WBTC peg could temporarily break, which creates additional issues for Maker which still uses BTC/USD price oracles instead of WBTC/USD price pair.

(MakerDAO Risk Dashboard | Block Analitica)

Source: MakerDAO Risk Dashboard | Block Analitica

  • Loan concentration at WBTC-A vault type is one of the highest as three largest borrowers represent two thirds of the exposure. Further, collateralization ratios of WBTC-A vaults are among lowest compared to other Maker vault types, creating additional liquidation risks.

4](MakerDAO Risk Dashboard | Block Analitica)

Source: MakerDAO Risk Dashboard | Block Analitica

  • Maker also became the largest holder of WBTC, surpassing Aave and Compound. As much as this sounds promising, it means Maker carries the largest liquidity risk. Especially since Maker would be the last in line to liquidate WBTC in a price shock scenario (because of the 1h OSM delay) and other platforms could potentially already drain a large part of available WBTC on-chain liquidity.

(MakerDAO Risk Dashboard | Block Analitica)

Source: MakerDAO Risk Dashboard | Block Analitica

We also believe that a good way to partially mitigate this would be to introduce a higher LR WBTC-C vault, instead of limiting DC on WBTC-A and forcing users to use riskier WBTC-B type.

Proposed Changes

WBTC-A: Increase SF from 2.5 to 4.0%

WBTC-B: Increase SF from 5.0% to 7.0%

Final Note

The proposed changes, if confirmed, should increase yearly revenue ceteris paribus by about 18 MM or from 132 MM to 150 MM DAI.

Proposed changes will get included into next week’s on-chain poll on November 15, 2021 (Berlin), and if passed, will be included in an executive vote on November 19, 2021 (Berlin).


Parameter Changes Proposal - PPG-OMC-001 - 2021-11-25

Parameter Proposal Group: MakerDAO Open Market Committee
Authors: @Primoz @LongForWisdom, @Monet-supply, @SebVentures, @hexonaut, @ultraschuppi

image

Source: Risk Premiums & Competitive Rates December 2021

Market Overview

DAI borrow rates at Compound and Aave have been very volatile over the last month and ended at a level between 2% and 3% after including farming rewards on supplied collateral and borrowed DAI. Aave has recently decreased farming rewards by 30% but we don’t expect this to affect DAI rates significantly as the reward distribution between supplied and borrowed DAI changed from 50:50 ratio to 33:66. While rates at two largest Maker competitors are on average in line with current ETH-A rate, note that the rate volatility on these secondary lenders platforms is very high, implying that additional larger borrow amounts could not be sustained at these low rates at Aave and Compound as easily.

This was also one of the main reasons why we thought a smaller increase in ETH-A rate should be sustained by the large borrowers. According to the last study performed, most of the recent debt increase on ETH-A was performed by two entities who represent already two thirds of ETH-A debt exposure.

(MakerDAO Risk Dashboard | Block Analitica)
Source: MakerDAO Risk Dashboard | Block Analitica

Risk Overview

Risk premiums have remained at similar levels over the last months, except for some smaller assets that have seen outflow of liquidity from Sushiswap lately - TVL dropped by more than 1bn in the last 2 weeks, potentially due to different allocation of Sushi liquidity mining rewards. Assets that are being affected are mostly tokens that are currently being offboarded at Maker. YFI liquidity dropped significantly on Sushiswap, but 25m out of 31m YFI-A debt is represented by Yearn treasury and YFI vault strategy, which is normally treated as a safe and well managed position.

WBTC vaults still present a threat at current exposure due to potentially long WBTC redemption cycle issues, but after knowing the largest two borrowers are two large and well capitalized centralized lenders, we feel a bit more relaxed about the state of WBTC vault risk. Additionally the upcoming safer and cheaper WBTC-C vault should offload some of these risks.

The calculated ETH-B risk premium is an outlier currently and has a high value because of the large amount of recently newly opened vaults that the risk model by default treats as medium or high risk, since we don’t have any behavioural inputs to use.

Proposed Changes

ETH-A

  • increase Stability Fee by 0.25% from 2.5% to 2.75%

(Maker Business Analytics)

Competitive rates have decreased slightly in the last month. The proposed rate of 2.75% will remain below the competitive rates but bring us closer to them. This continues our policy of proposing small rate changes where possible.

ETH-B

  • increase Stability Fee by 0.5% from 6.0% to 6.5%

](Maker Business Analytics)

Similar adjustment like with ETH-A. ETH-B users are traditionally less sensitive to rate changes so we propose a bigger increase of the Stability Fee here.

WBTC-A

  • increase Maximum Debt Ceiling by 500 MM from 1500 MM to 2000 MM
  • increase Target Available Debt by 20 MM from 60 MM to 80 MM

image 1

The DAI-minting from WBTC-A has slowed down in the last week, maybe also related to the Mid-month rates increase. The primary driver for the accelerated DAI-minting has been identified - Celsius - so we feel a lot more confident now with WBTC in general which is why we propose changing line and gap to allow more DAI from this vault type.

LINK-A

  • increase Stability Fee by 1.0% from 1.5% to 2.5%

(Maker Business Analytics)

We have been keeping the rates for LINK-A artificially low to stimulate DAI-minting. Within the last 6 weeks ~25 MM new DAI have been minted so we think it is time to bring this to a level we have for other similar collateral types.

MANA-A

  • increase Stability Fee by 3.0% from 3.0% to 6.0%

image

With the currently set Stability Fee MANA-A is not a profitable product. We propose to increase the Stability Fee with the target to breakeven with the oracle costs. If this product starts working again, we can decrease the fees again later - if it doesn’t the community should think about offboarding it like we already did with a couple of other collateral types.

UNI-A

  • increase Stability Fee by 2.0% from 1.0% to 3.0%

image

Similar situation as with MANA-A - the rates are artificially low but the intended effect of increased DAI minting is not happening. We applied a similar growth strategy here as we did with LINK-A, but in this case it did not work out. The proposed changes will barely cover the oracle costs.

GUSD-A

  • increase Stability Fee by 1.0% from 0.0% to 1.0%

image

The GUSD-PSM is going to launch soon. As a first step we propose to increase the Stability Fee slightly with the goal to increase motivation to unwind here and move over to PSM.

GUNIV3DAIUSDC1-A

  • decrease Stability Fee by 0.4% from 0.5% to 0.1%

image

The APR on this pool has decreased significantly so the DAI-minting has slowed down a lot. This is related to the new 0.01% UniV3-pool which already has a much higher volume than the underlying 0.05% pool of this collateral. With the currently set Stability Fee it is not profitable to stay here, we propose to decrease the Stability Fee to reduce the loss for vault users.

Note that there is already a Signal Request in the forum for onboarding the corresponding Gelato-Token for the new pool.

The proposed changes will decrease our annualized income by ~0.75 MM - we still think this is a reasonable change as the alternative would be that the vaults will unwind.

Uniswap V2-LPs:

  • UNIV2DAIETH-A - increase Stability Fee by 0.5% from 1.5% to 2.0%
  • UNIV2WBTCETH-A - increase Stability Fee by 0.5% from 2.5% to 3.0%
  • UNIV2USDCETH-A - increase Stability Fee by 0.5% from 2.0% to 2.5%
  • UNIV2UNIETH-A - increase Stability Fee by 2.0% from 2.0% to 4.0%

We propose adjusting the Stability Fees to closer align with the rates we have for the underlying collateral types.

Revenue Effects

We anticipate the effect on annualized revenue - assuming stable levels of utilization - to be

  • ETH-A: increase by ~7.8MM
  • ETH-B: increase by ~0.77 MM
  • LINK-A: increase by ~0.68 MM
  • MANA-A: increase by ~0.16 MM
  • UNI-A: increase by ~0.25 MM
  • GUNIV3DAIUSDC1-A: decrease by ~0.75 MM
  • Uniswap V2-LPs combined: increase by ~0.58 MM

Final Note

The proposed changes, if confirmed, should increase yearly revenue by about 9.6 MM or from 153.2 MM to 162.8 MM DAI.

Proposed changes will get included into next week’s on-chain poll on November 29, 2021 (Berlin), and if passed, will be included in an executive vote on December 3, 2021 (Berlin).


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Credits and Feedback

Credits

Credit is owed to all Core Units and teams mentioned in this summary. Thank you!

Feedback

There is no feedback survey at the moment. Please, be vocal about any feedback and recommendations towards this new initiative. It would be very appreciated.

In addition, this is our first attempt at such a large and unique thread. There will be improvements throughout the upcoming Monthly Core Unit Updates Summaries.


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Hi there!

Wouldn’t it make more sense to just link to the corresponding posts (as there might be some discussion to follow as well) instead of copy pasting?

Cheers
Tim

3 Likes