Signal Request / Poll: When should we trigger SCD Global Shutdown?

Now that MCD Dai has flipped SCD Sai, I think now is a good time to begin discussions on what a timeline for global settlement of SCD could look like. I would like to gather sentiment on whether governance prefers a date threshold, a supply threshold, a peg threshold, a combination of the three, or something completely different. If we can come to some sort of consensus on what type of threshold makes sense, we can begin to get granular about the actual threshold parameters.

In summary: I will create a poll to determine where consensus lies on global shutdown parameters. If a clear signal emerges I will create a second poll in order to clarify threshold details in the hope of getting us on the right page towards the inevitable shutdown of our legacy system.

  • Shutdown vote begins on a specific date
  • Shutdown vote begins once a certain supply has been reached
  • Shutdown vote begins once the peg has increased/decreased a certain %
  • Other - Please explain below
  • No Opinion / Show me results

0 voters

This is a multiple choice poll, vote for everything you are willing to vote for in an on-chain vote. Poll results will be reviewed on December 17th, 2019

1 Like

@Aaron_Bartsch Hi mate,

So your idea would implicate or need another team of gouvernance if i understand.

There is no other way to proceed otherwise to keep a control over everything no ?

Almost like a level 2 security.

Just slowly and surely reduce the SAI debt ceiling along with reduced amount of SAI. When it is nice and low keep increasing the SAI stability fee to +100% while warning everyone loud and clear to close their CDP. After some time of this all alive and conscious CDP holders have closed their CDP. Then you can safely trigger shutdown on the rest.

I don’t think this could work, too many variantes

Is the same with cell phone and data, when reaching your limit, they put a flter to slow down at a minimal state.

There is some wise guys out here, so i think its too much simple, leaving it open is leading to exposure and too much risk. But this is a personal opinion, the security is weak around it i think

6 month advanced notice of shutdown date seems reasonable to me.

Why wouldn’t this work? Let’s say that all 3 options I gave are agreed upon and the parameters are as follows:

Shutdown Date - 6 months (June 30)
Shutdown Supply - <5M Sai
Shutdown Peg - Sai Value +/- $.10

We constantly monitor the parameters and if any threshold is crossed the Governance Facilitator introduces an executive vote into the governance portal and we vote to shut down the system. It doesn’t have to be put into code to have it monitor the data and enact automatically. It is a social contract between voting parties. Hope that helps. Let me know your thoughts.

2 Likes

Yeah, this makes more sense than the poll. Although more than one option could be selected, the poll seemed to asked us to pick a single option. That’s not necessary. We can condition on all 3 parameters.

I think we should announce that community currently expects to shutdown it between april and july, when we expect sai supply will be lower than 10mil. Announcement should make clear that this is how we currently see the situation and it’s not hard commitment regardless of the situation. Probably we should also say that we won’t shutdown it sooner than some date. (numbers are just for the purpose of example, some other parameters than sai supply is probably more appropriate).

In short, we should set expectations.

Possible condition would be also if there is too small negative derivative of sai supply (maybe on a monthly basis).

2 Likes

@Aaron_Bartsch , That is not a bad idea at all, but i don’t think it will do it.

By that i mean, its not fast enough, i think we need more something like already in place but very limited access, almost like a escrow but even there.

Let’s keep talking about it, and i am sure other will come up with idea and we will end up sorting it.

I am not a expert like you probably, i just try to expand the outside view as much as possible

I want to highlight an interesting idea I heard from @mrabino1 on Ep.64 of the G&R call (around 56:00)

We can set the date a year from now and as we go through time move it up closer once we have better data and understanding of what would be the ideal circumstances.

The key of course is to create very clear communications to the public to establish a sense of expectation about ES and the ultimate deprecation of SCD.

3 Likes

It would also be important to set a clear expectation that the ‘in a years time’ date might move as we got closer to it. I can see lots of people planning around a fixed date and then being quite annoyed when it moved (absent clear expectations.)

4 Likes

I’m in favor of a shutdown after at least one year, though I would prefer to drag it on as long as practical. This might mean supporting SAI until the peg breaks severely (1 SAI > 1.05 DAI). I do not suspect SAI would trade below DAI because you can migrate it 1:1 in that direction.

By far, the largest remaining Sai holder is Compound Sai. Compound doesn’t seem to have an easy way to migrate debt between the two contracts, so all outstanding loans (totaling $2.8m SAI) would have to be repaid, and every creditor would have to withdraw and migrate. This may not be possible for every borrower or creditor, and global shutdown could prevent repayment, resulting in the inevitable seizure of collateral (if that would even work after shutdown) or perhaps the failure of the entire system.

This post/poll is now expired. It was determined that signal polls for shut down on a specific date, peg %, and supply amount were needed in order to clarify the parameters required to trigger SCD Shutdown. These polls can be found here:

Date Vs Supply

Peg

1 Like