Maker Relay Ep 71
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👓 Here’s the breakdown:
Current Events 🍵 | This Week in Governance 🗳️ | Team Updates 📋
Mark your Calendar 📆 | Useful Links ⚓ | Have Feedback? 🎙️
Current Events 🍵
Announcing Maker Wormhole
The Protocol Engineering team is excited to introduce Maker Wormhole! This is a new module for transferring and minting Dai on different blockchains.
Users can currently transfer Dai between Arbitrum, Optimism, and the Ethereum mainnet. Support for transfers across more L2s and minting on chains (besides the Ethereum mainnet) is coming soon!
More details are available in the Forum Announcement 2 and promotional video. 2
Annual profit tops 100MM; Surplus Buffer burns MKR
MakerDAO’s annual profit is now estimated at over $100MM, and the Surplus Buffer reached its capacity on November 14th, with 65.4 MKR burned thus far 1.
Annual profits are calculated by MakerBurn and include annualized stability fees, liquidations, and fees from the Peg Stability Module (PSM) and Dai Savings Rate (DSR) minus Core Unit expenses.
As the Surplus Buffer is explained on MakerBurn:
If all debt to the system were instantly repaid, a surplus of 60M DAI would remain.
The surplus increases with time as fees on debt accrues, DAI enters/exits the PSM, and liquidations net a profit for the system.
The system aims to keep a buffer of 60M, and when the surplus surpasses this buffer, the exceeding amount is used to buy back and burn MKR.
Whenever the DAO has expenses, these are paid by pulling DAI from the surplus.
Peg Stability Module (PSM) fees set to 0% on PSM-USDC-A and PSM-USDP-A
With the passage of the November 4th Executive, trading fees have effectively been eliminated on the USDC and USDP (formerly PAX) PSMs.
Users still have to cover gas fees; this change lowers the Fee In (tin) to 0%.
According to @rema of the Risk Core Unit,
Celsius is even using PSM directly to acquire USDC, which is not surprising given that 3Pool on Curve, which has been the dominant and most important pool in terms of stablecoin price determination for quite some time now, has dai with a discount compare to USDC or USDT. Bascially dai is currently trading with a discount compared to USDC and USDT on the largest market, thus, PSM is the prefered vanue.
This Week in Governance 🗳️
MIPs
Active Executive Votes
There is currently no active executive vote. The most recent executive vote (shown below) was active on November 12th and passed on November 14th. It is available for execution on November 16th.
Last Week’s Executive
Parameter Changes, Return Unused Budget to the Surplus Buffer - November 12th, 2021
This executive proposal passed on November 14th, 2021, 04:18 UTC. The following changes occurred within the Maker Protocol:
Parameter Changes:
As per this forum thread, 218,059.81 unused DAI from the GovAlpha Core Unit budget was returned to the Surplus Buffer from the PauseProxy contract. This amount comprises budgeted funds that were unused by the GovAlpha Core Unit.
Active Governance Polls
Active Signal Requests
Increasing the Surplus Buffer (2021-11) 1 - Signal Closes November 19th - @ultraschuppi is signaling to the community in request to increase the Surplus Buffer. He asks the community where we want to set the Surplus Buffer and keep burning some profits.
New vault-type for WBTC with a higher LR - Signal Closes November 19th - DAI minted from WBTC has recently been increasingly popular with the amount of DAI being tripled within the last month. A large market downturn on WBTC vaults running with a higher Liquidation Ratio is less likely to undergo liquidations, resulting in a loss for the protocol and the vault owner. In response, @ultraschuppi signals to the community, asking whether we should add a new WBTC-based vault type with a higher LR.
Burn Baby Burn! [Burn The MKR Treasury] - Signal Closes November 26th - @aburban90 asks the community to burn half of MKR in the treasury and use the remainder to vest Core Units.
Should We Mint New MKR for Protocol Expenses or Fund Them With MKR from the MakerDAO Treasury? - Signal Closes November 27th - There is no clear indication about what should be the source of the MKR used for future expenses. @mkrorbkr presents two options: Use MKR from the MakerDAO Treasury or Mint new MKR using the PauseProxy.
Adjusting Dust Parameter (2021-4) - Signal Closes November 25th - With gas and ETH prices continuing to go up, our dust
limits offer less protection against losses. In response, @monet-supply proposes whether we should increase dust
limits for all Vault types.
Team Updates 📋
Core Unit Office Hours
Join Link | GovAlpha - Mondays 17:00 UTC
Join Link | Protocol Engineering - Tuesdays 15:00 UTC
Join Link | Content Production - Wednesdays 15:30 UTC
Join Link | Growth - Wednesdays 17:00 UTC
Join Link | Sustainable Ecosystem Scaling - Tuesdays 15:30 UTC
Join Link | Governance Communications - Fridays 18:00 UTC
Mark your Calendar 📆
Governance & Risk
Join Link | Agenda - Thursdays at 17:00 UTC
AMA #12 | Learn about Maker Wormhole with Protocol Engineering
Join Link | Agenda - Friday, November 19th at 16:00 UTC
In Case You Missed It
Useful Links ⚓
Forum and Maker Chat
Discuss and debate MakerDAO.
Public Calander
Subscribe for all public calls, votes, and other reminders.
Governance Portal
Voting dashboard for MKR voters.
Governance Tools
Library of useful links for Stakeholders; Protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auctions data.
MIPs Portal
MIPs Dashboard for everyone.
Learning Portal and Technical Documentation
Learn more about the Maker Protocol.
Have Feedback? 🎙️
We value your input! Take our survey to let us know what we might be missing or how we can do better.
Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does not serve as financial advice or an inducement to vote in any specific way. This update is purely for information and communication purposes only.