Risk Core Unit Month in Review: November 2021

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 are 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 are 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

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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Those Block Analitica Risk Dashboards are :fire:
Please keep building them!

Request for one depicting risk of DAI on other chains—or lack there of…

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