Real-World Finance Core Unit Report - 2021-02

February 2021 reporting for Real-World Finance Core Unit .

Review

February was an insane month in terms of new prospects for RWA. @Philinje took most of the customer relationship.

A significant Real-World Asset documentation was published with more precise definitions and formulas and a link to our Collateral Monitoring template.

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@williamr as written a nice Asset Originator onboarding document with a checklist. I hope we can achieve the timeline :slight_smile:

We improved our Risk Assessment template thanks to the feedbacks from the community.

A lot of work has been done on how to secure and scale securitization investments through SPVs (e.g. the Centrifuge Model). One part is a discussion with asset managers (instead of asset originators) and the second part is third parties with reputable credentials and regulatory obligations to monitor/backup the SPV operations.

Collateral onboarding

Our main priority is still to onboard 6S and NewSilver.

For 6s, the SC team published MIP21 in Kovan last week. So the bottleneck is the legal side as @mrabino1 explained well. Then the review might take some time. The Real-World Finance team will probably stop everything to focus on that when it’s ready.

For New Silver, the SC team has started to work on MIP22. With MIP21 out of the way they go into the meaty piece. Nevertheless, Liquidation 2.0 remains the priority. There will be a weekly point with @hexonaut. New Silver pool has already $1.5M AUM and 5 investments. The deal flow is here waiting for Maker.

Work is done on documentation review on ConsolFreight by @williamr, you can expect something on the forum in the few weeks.

Besides those collaterals, we have a lot of incoming demand and a lot of talks with prospects. It is our understanding that it’s better to have already discussed possible terms before the MIP6 application. The Business Development was great to provide a good deal flow.

Nevertheless, it seems more and more obvious that not all collateral will be onboarded. This poses the problem of selection.

Financials

The monthly financial presentation was improved with some slides.

The balance sheet extraction is quite advanced except for getting DAI outstanding. Work has also been done on workforce expenses tracking.

Technologically, we are still using Dune Analytics but there are some shortcomings. First, the SQL query is 348 lines of SQL long which is not ideal. Secondly, we can’t have data on the DSR because the platform doesn’t support functions without parameters (like drip).

We are evaluating DappQuery as well and a Maker Foundation GraphQL feed but this is not a high priority work. Significant investments will have to be made at some point later this year.

Another point of concern is tracking the MakerDAO expenses. It’s already a bit complex and complexity will only increase with the number of MakerDAO wallets and types of expenses.

Public work

Previous reportings

@Philinje @williamr @jameskmccall

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Fantastic Report :muscle:

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Is the expected size on the collateral onboarding spreadsheet the requested DC? If so, Reinno is asking for 300M DAI. Very ambitious.

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:scream: Go big or go home.

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It’s mainly an expectation based on the numbers provided. It’s still early in the process for this one.

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