Returning excess budget from RWF in DAI or in MKR?

In 2021, RWF CU was underutilizing the budget and left a significant part in the DSSVest.

On December 4th, a strong wave of liquidation triggered a huge slippage on flap auction (up to 25%) so mandated actors were suggested to withdraw funds to avoid more “bad flap” which I did. Those funds being in excess I could have waited to send them back later or sterilized them by buying MKR (~100 MKR). I did the latter and converted those DAI at a much better rate than all-around flap auctions. In retrospect, I should probably have done nothing.

The main transaction is here. The full RWF Wallet ledger is here.

The options are to convert those MKR back to DAI and send them to the Surplus Buffer which would incur a 5% slippage on burning MKR (through flapper that will be activated right after) or send them to DSPauseProxy with the MKR from the Foundation for future use (or burning) by the DAO. The latter makes more sense but I’m fine both ways.

There is more than 1.5 months of budget in the DSS Vest and the RWF wallet

What do you want?

  • convert to DAI
  • send to DSPauseProxy

0 voters

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I would like to let the community weigh in on this, but wanted to ask why swapping the MKR back for DAI and keeping in the multi-sig isn’t an option? These are CU budget funds so my first priority is making sure the future RWF Core Unit has access to their allotted budget.

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That can be an option as well, but I made sure the wallet is still overflowing. There is 30k in the wallet, 140k in the 2021 DSSVest and the 2022 DSSVest is accruing the budget since the beginning of the year (70k as of writing). There will be 2 people less in the team at the end of the month.

If convert to DAI is chosen, I can let the DAI in the wallet and let the next guy decide.

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I believe the timing of the conversion here is the key question. If I had to opinionate on the matter, I’d rather have the MKR sent back to treasury and burnt prior to any fund transfer between the current mutlisig and a new one setup for the CU.

If voting is confirmed, I do not plan to have anything other than DAI in the multisig from day 0.

The transaction was executed sending the 102 MKR to DS Pause Proxy.

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