This series of posts reflects solely the author’s opinions and is provided for informational purposes only. The content of the post should not in any way be relied upon as legal, business, investment, financial or tax advice.
Dear Community, this post kicks off a thread to collaborate in a SES-backed project we named Real-World Sandbox. It will be a 5-week intense project that we hope will give everybody the occasion to contribute and shape what Maker’s role can be within the monetary and lending stack. My role will be that of merely facilitate and formalise outputs, in addition to contribute based on my experience and ideas.
You can read the document and see the full recording here: drive.google.com/drive/u/0/folders/1sHuqfiktRl0paAAUub9TK_yoWsFfhzst
Maker’s expansion to encompass use cases that aren’t native of the blockchain, like real-world financing, is vital for DAI’s sustainable development but has brought forward a new set of challenges. Those challenges have sparked wider questions about what Maker’s role within the wider monetary and lending stack is – as demonstrated by SG’s recent MIP-6 and by @rune’s call to action in proposing Maker as an engine for a sustainable development.
What we call the lending stack is a complex ecosystem of different actors, with a set of often adversarial incentives and little visibility compared to the world of smart contracts. For this reason, decentralisation and removal of single points of failure becomes even more crucial. Defining Maker’s ideal position within the stack is a difficult, and iterative, task, that should include the wide Community – although facilitated by dedicated Core Units. A similar stylised representation doesn’t apply only to real-world financing, but to the wider lending eco-system. In this space, attracting people with relevant TradFi experience is key for a successful development.
The SES CU and the project team believe that a few activities could be instrumental for removing the barriers between decentralised capital and the workforce in the context of real-world financing:
- Develop a common vision of the lending stack and of Maker’s role within it, in accordance with the DAO’s long-term view of its role within the world
- Formalise a detailed manifesto of this vision – such a manifesto (subject to governance approvals) will influence how internal (Community, MKR holders, CUs, etc.) and external (potential partners) engage with Maker on the topic of real-world financing
- Define, as a consequence of such manifesto, a clear roadmap to incubate, alongside the existing RWF CU, other agile groups (potentially CUs) dedicated to reducing and monitoring risks for the preservation of the DAI
- Keep incentivising a culture of continuous decentralisation and development, in accordance with SES’s core ambitions
The next week will be focused on activity (1), i.e. trying to understand and formalise a common vision of what is the TradiFi-DeFi monetary and lending stack, and where is Maker currently playing within it. We invite all interested parties, both internal and external, to contribute to the thread below.
For those who, for several legitimate reasons, want to communicate with me directly, you can do it at [email protected].
Let’s now make the world a better place.