I wanted to address a misconception I’ve seen come up repeatedly.
It’s not the Foundation that decides (or even opines on) what potential collateral types to add. Instead, Domain Teams, those individuals elected by the community and granted a mandate to act, may discern the order of collateral types they want to work on. But they don’t decide what to work on; only you, the decentralized group of MKR holders who control the Protocol, do.
While the DAO continually looks for more external Domain Teams to take up the mantle, for now, there is an overlap between members of the Domain Teams and employees of the Foundation. Although that requires us, the mandated actors, to wear multiple hats, we endeavor to act without bias when ordering collateral types for domain review. Practically that means we isolate ourselves from non-Domain Team members when discussing the order of assets to review as part of the onboarding process. More importantly, it means that we do not engage with or take guidance from non-Domain Team Foundation members. And it means that we work to make the domain team meetings, explained more below, transparent to the community.
These meetings are attended by @LongForWisdom, the Governance Facilitator, and by @juanjuan, a community aid, who compiles and publishes summaries to the Maker Forum. Ultimately, the goal here is to inform the community about potential collateral types in the pipeline.
While there isn’t a fixed methodology, the Domain Teams incorporate the following matrix when coming to a consensus around collateral onboarding:
“Which potential collateral does the community want to see added (greenlight polls)?”
“Which potential collateral has the biggest potential to generate the most Dai?”
“Which potential collateral is the easiest to implement, thereby enabling more collateral to be onboarded?”
“Which potential collateral type would help diversify the collateral portfolio backing Dai? (e.g. gold, rwa)
“Which potential collateral type has unique properties that may help stabilize the peg (e.g. stablecoins)?
“Is there significant smart contract risk to onboarding a collateral due to how new it is?
These are all competing priorities, and coming up with collateral types that satisfy all of these goals is impossible.
The Domain Teams understand that the collateral onboarding process can seem frustrating at times when your favorite Defi token isn’t getting added with the urgency you think it deserves. That said, take a step back and do not overlook the forest for the trees. Onboarding a single token as collateral in +/- two months will not make or break the Maker Protocol. But it is critical to establish a regular and sustainable cadence for collateral onboarding, because future Domain Teams, mandated actors and community members will look to what we are doing today as a guide for how they will act tomorrow.