There is no reason for the Foundation to continue to bear these costs, and in fact they would prefer to stop doing so as soon as possible. The only reason it’s taken this long is because I’ve been extremely busy spinning up the Oracle Core Unit. This is on the top of my priority list to get sorted at the moment, I should have the MIP out within a week.
Thanks. Can you give us a rough estimate on what that amount is going to look like? This is an off-balance sheet item that any information would be pretty helpful to have — even if it’s just “between 3/4 and 1 million DAI” for example
Thanks in advance!
It’s not the ‘actual cost’ that matters, it’s what multiple of the actual cost needs to be held in reserve in case gas increases by an order of magnitude. Think of the peak of NFT summer where 1500 gwei transactions were the norm for almost a month. Running out of ETH and the Oracles going offline while the OCU requests more funds from governance is not a viable scenario.
I’m referring to how much we owe the Foundation. You’re spot on that forecasting is a different beast.
But what do we need to make the Foundation whole on what they’ve spent since Aug 1?
Hey @NikKunkel, how long are you intending to keep this signal open for? Need to get an ending date added to the post so we can figure out the Governance cycle for it and so the people voting can be aware.
To those who voted to off-board MATIC:
In the last few days the MATIC vault has accrued 8.9 million DAI of debt, earning 267k of annual income (vs. historical $150k annual oracle cost).
If you voted to off-board before this occurred, you may wish to re-consider.
Okay, will add an end date of 1 week from today (Saturday the 6th). That will enable us to have Polling Votes for offboarding going out that following Monday. @prose11 Let me know if there are any issues with this timeline.
As for MATIC, @sourcex reaffirmed Polygon’s commitment to the original deal, followed by tangible actions from the Polygon team to lock up MATIC in the vault close to the current debt ceiling. In light of this new information I suggest the community temporarily suspends the offboarding process for MATIC as the @Growth-Core-Unit coordinates with the Polygon team on what the next steps/timeline are for completing the agreement.
Previous I also voted to offboard not profitable collateral types, on the one side it makes sense to cut out not necessary expanses due to oracle fees on the other side is it the right approach just to say that it is just not profitable? The parameters are exremly not attractive espesially the LR is for my opinion to high maybe we could lower them with a higher fee. There are other aspects for “low” demand like high gas fees mantain/open a vault, but this is a problem that hopefully will be resolve with L2 and ETH 2.0. Also lack of marketing. I would like to have offboarded collaterals back in the future those protocols are solid.
yes, that’s what businesses do.
That may contribute to the cause, but the effect is that the vaults are unprofitable and hence we should offboard them. Once we have Maker deployed on L2s the community can vote to re-activate these vaults to see if they are more viable there. The Oracle costs on L2 are significantly lower hence the threshold will be much lower to reach profitability. I see no reason to keep them onboarded in the meantime.
Thank you for reminding me what businesses do.
I think you got me wrong, let me clarify a little bit. I mean what we can do short term to push those vaults into a profit zone, maybe adjust parameters like for example reduce the LR I know its a risk problem so the tradeoff would be to increase the fee (be more dynamic) and encourage not to give up so fast on the products. Apparently there is an agreement with Polygon which turned out postitive in the end, maybe the other teams have similar intentions.
When there is nothing else left to change the current situation then yes offboard them.
With only the Signal for Matic failing, polls for offboarding COMP-A, AAVE-A, and BAL-A will be live on Monday (2021-11-15) and will last for three days.
We do try to communicate with teams behind collaterals. However, sometimes teams are still not interested or unwilling to commit large amounts
The executive containing these changes has now passed. Thanks to everyone that voted.
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