There is currently toxic uncertainly about whether Maker will compensate vault holders that were completely liquidated. This uncertainty is likely creating friction among current and potential vault holders; They are wondering whether to increase their leverage (and create DAI) or not. It’s hard to known for certain what people are thinking, but the peg is above 1.0, the DSR set to zero, and the stability fee at 0.5% … for days! I believe there is substantial fear, uncertainty, and doubt infecting current and prospective vault users.
This poll does not try to determine the exact compensation formula. Correct me if I am wrong, but I’ve read that about $8 million was lost. About 2/3 of the auction failure was absorbed by the Maker protocol and, as I write, is being recapitalized. I expect the defensible loss to vault holders was in the range of $1-3 million. If this poll passes then we’ll figure out how much to repay, raise the funds by minting and selling MKR, and airdrop DAI into the respective accounts. This does not have to happen immediately, but could take place over 1-3 months (TBD).
- No compensation
- Low compensation
- Medium compensation
- High compensation
- I disagree with the options in this poll (details below)
If the poll finds general support for compensation, it will be important to conduct an on-chain poll so that MKR holders (whose investment will be diluted) have a chance to weight in.