Weekly Relay | June 7th - 13th, 2022 Comment Hi everyone, thanks for checking out the Weekly Relay! Whether you hold MKR or DAI, own a vault, or want to get more involved in governance, this is your one-stop shop for MakerDAO updates. Online PDF Version Current Events $stETH/ $ETH Peg in “Rough Shape” Celsius & MakerDAO The stETH token, issued to Lido Finance users to secure ETH after the merge, suffers from severe liquidity problems. At the time of this writing, Curve’s ETH/stETH pool is composed of nearly 80% stETH, and stETH is trading at a 5% discount against ETH. In short, the peg has broken. The Celsius Network, which as of June 10 held nearly 450k $stETH worth $1.5 billion, is facing a liquidity crisis due to the depeg and has frozen all withdrawals, swaps, and transfers. In addition to holding significant positions across major DeFi protocols, Celsius’ liquidity crisis directly contributes to today’s market crash. MakerDAO’s biggest debt holder, Celsius, has been consistently adding WBTC as collateral, which may compound the exchange’s problems if the market continues to decline. The Endgame Plan part 3: The Endgame Decentralized Workforce @rune has published Part 3 of his Endgame Plan for revamping Maker governance. Some of the goals outlined and the methods for achieving them include: ● Making it easy for MKR holders to participate in decisions ● Focusing on dealing with the budget challenge ● Securing separation of powers via MetaDAOs ● Ensuring transparency and inclusion in all public interactions ● Open-sourcing frameworks are used to guide decisions and measure the results The extensive post also discusses a new Budget Allocator role, the DAO2DAO paradigm, and several new types of Core Units, such as Supporting Core Units (SCUs), Administrative Core Units (ACUs), and Contributing Core Units (CCUs).). This post also briefly recaps the role of Decentralized Voter Committees in this proposed new governance system. All MKR holders can join Decentralized Voter Committees that promote impactful participation in governance on high-level topics and provide feedback to Delegates about MKR holders’ opinions. Keep an eye on the forums for announcements regarding the next Decentralized Voter Committee session. Specialization Unlocks Complexity ...the complexity of Maker’s product has outgrown its brain. Teej posted an alternative solution to Rune’s Endgame Plan’s Maker governance problems. Specifically, @teej is worried about: 1. Maker’s unmanageable complexity makes it nearly impossible for delegates to make informed decisions on every new proposal in Maker; and 2. Due to this complexity, voter turnout is low (about 9%). As a solution, the post recommends that Maker governance be split into two primary groups: Governors and Clusters. Governors will focus on high-level strategic decisions around Maker’s goals and long-term vision, e.g.: ● Should 20% of costs be cut in a bear market? ● Should a Core Unit’s budget be approved? ● Could MakerDAO onboard “unsecured” debt if it enhances DAI network effects while sacrificing “hardness”? The Governors would be freed from operational issues related to hiring, firing, budgeting, etc., allowing them to focus on their core duties and keep up with DAO activities. To implement the high-level strategies outlined by the Governors, the Clusters will focus on executing the day-to-day tasks. A Cluster may consist of multiple Core Units. For example, RWA Clusters could include LTS, RWF, and CES. The Core Units should be given higher levels of autonomy to solidify the separation between high-level strategic decision-making and daily execution and take advantage of specialization’s known benefits. @teej believes this solution addresses many of the same issues as the Endgame Plan but in a less disruptive way. This Week in Governance Weekly MIPs Update Ratification polls, proposals, and pre-MIP discussions. Executive Vote(s) Parameter Changes, Starknet Bridge Limit and Authority Changes, Recognized Delegate Compensation, SH-001 Budget Distribution - June 08, 2022 This colossal executive proposal passed, and the following changes occurred within the Maker Protocol: MOMC Parameter Changes Parameter Vault Type Decreased / Increased Amount From → To Maximum Debt Ceiling ( line ) WSTETH-A - 100 million DAI 300 million DAI → 200 million DAI Maximum Debt Ceiling ( line ) DIRECT-AAV EV2-DAI - 200 million DAI 300 million DAI → 100 million DAI Maximum Debt Ceiling ( line ) LINK-A - 50 million DAI 100 million DAI → 50 million DAI Maximum Debt Ceiling ( line ) MANA-A + 5 million DAI 10 million DAI → 15 million DAI D3M Target Borrow Rate ( bar ) DIRECT-AAV EV2-DAI - 0.75% 3.5% → 2.75% Target Available Debt ( gap ) WSTETH-B + 15 million DAI 15 million DAI → 30 million DAI Maximum Debt Ceiling Reductions As per these governance polls (1, 2, 3, 4, 5), the following vault types had their Maximum Debt Ceiling ( line ) set to 0 DAI as the first-step of the collateral off-boarding process defined in MIP62: ● UNI-A ● UNIV2DAIETH-A ● UNIV2WBTCETH-A ● UNIV2UNIETH-A ● UNIV2WBTCDAI-A For more information, please see the original Signal Request on the forum here. Starknet DAI Bridge Technical Changes As a result of this post from the StarkNet Engineering Core Unit (SNE-001), the following changes were made: ● The DAI Bridge Limit was increased by 100,000 DAI from 100,000 DAI to 200,000 DAI Please note Maker Governance has already approved a DAI Bridge Limit of up to 5 million DAI in this governance poll. ● DSChief was given control over L1EscrowMom. This change allows Maker Governance to shut down the Starknet Bridge via an Executive Vote without needing to wait for the GSM Pause Delay for the shutdown to take effect. ○ This was achieved by calling setAuthority(0x0a3f6849f78076aefaDf113F5BED87720274dDC0) on the L1EscrowMom contract. Strategic Happiness Core Unit (SH-001) Budget Distribution As per their successful budget proposal, the following budget distributions took place for the Strategic Happiness Core Unit (SH-001): ● 230,000 DAI were transferred to the Strategic Happiness Core Unit (SH-001) at 0xc657aC882Fb2D6CcF521801da39e910F8519508d. ● 540,000 DAI will be streamed to the Strategic Happiness Core Unit (SH-001) at 0xc657aC882Fb2D6CcF521801da39e910F8519508d starting on 2022-06-01 and ending on 2023-03-15. ● 250 MKR will be streamed to the Strategic Happiness Core Unit (SH-001) at 0x955993Df48b0458A01cfB5fd7DF5F5DCa6443550 starting on 2022-06-01 and ending on 2026-06-01 with a cliff date of 2023-11-23. Please note the address for the DAI budget distributions is different to the address listed in the budget proposal after the Core Unit Facilitator set up a multi-sig wallet for the Core Unit. Please see this forum post for more details. Recognized Delegate Compensation As per MIP61: Recognized Delegate Compensation, a total of 78,062 DAI were distributed to eleven Recognized Delegates as itemized below: Delegate Amount Address Flip Flop Flap Delegate LLC 12,000 DAI 0x688d508f3a6B0a377e266405A1583B3316f9A2 B3 schuppi 12,000 DAI 0xCCffDBc38B1463847509dCD95e0D9AAf54D1c 167 Feedblack Loops LLC 12,000 DAI 0x80882f2A36d49fC46C3c654F7f9cB9a2Bf0423e 1 MakerMan 11,025 DAI 0x9AC6A6B24bCd789Fa59A175c0514f33255e1e6 D0 ACREInvest 9,372 DAI 0x5b9C98e8A3D9Db6cd4B4B4C1F92D0A551D06 F00D JustinCase 7,626 DAI 0xE070c2dCfcf6C6409202A8a210f71D51dbAe947 3 GFX Labs 6,607 DAI 0xa6e8772af29b29B9202a073f8E36f447689BEef6 monetsupply 6,275 DAI 0x4Bd73eeE3d0568Bb7C52DFCad7AD5d47Fff5E2 CF Doo 622 DAI 0x3B91eBDfBC4B78d778f62632a4004804AC5d2 DB0 Flipside Crypto 270 DAI 0x62a43123FE71f9764f26554b3F5017627996816 a Penn Blockchain 265 DAI 0x070341aA5Ed571f0FB2c4a5641409B1A46b496 1b For further information, please see this forum post. Governance Polls Active Governance Polls There are three active governance polls: Poll Name Discussion Deploy a Trial Permissionless Open Market Operation Discussion Management of Velodrome Airdrop and veNFT Discussion Add rETH as a new Vault Type Proposal Thread - Risk Core Unit Evaluation - Smart Contract Technical Assessment - Oracles Core Unit Evaluation Ratification Polls There are eleven active ratification polls: Poll Name Discussion Ratification Poll for Facilitator Onboarding to IS-001 - @psychonaut (MIP41c4-SP34) Discussion Ratification Poll for Facilitator Onboarding to DIN-001 - @tadeo (MIP41c4-SP35) Discussion Ratification Poll for Adding Lending Oversight Core Unit (LOVE-001) Discussion Ratification Poll for Task Forces (MIP75) Discussion Ratification Poll for Onboard Growth Task Force (MIP75c3-SP1) Discussion Ratification Poll for Adding a Special Purpose Fund - Makershire Hathaway (MIP55c3-SP4) Discussion Ratification Poll for MIP16 Amendments (MIP4c2-SP20) Discussion Ratification Poll for Permissionless Open Market Operations (MIP74) Discussion Budget Ratification Poll for Modify Strategic Finance Core Unit Budget, SF-001 (MIP40c3-SP69) Discussion Ratification Poll for Onboard/Amend Keep3r Network (MIP63c4-SP4) Discussion Budget Ratification Poll for Modify Growth Core Unit Budget, GRO-001 (MIP40c3-SP70) Discussion Prioritization Sentiment Polls There are two active prioritization sentiment polls (finally up and running! ) : Prioritization Sentiment Poll Start Date End Date Technical Resource Deployment Jun 06, 2022 20:00 UTC Jul 04, 2022 20:00 UTC Collateral Class Jun 06, 2022 20:00 UTC Jul 04, 2022 20:00 UTC Community Greenlight Polls There are two active community greenlight polls: Greenlight Poll Start Date End Date KREDIKA (Kredika LTD) Jun 6, 2022 at 16:00 UTC June 20, 2022 at 16:00 UTC XSGD (StraitsX) Jun 6, 2022 at 16:00 UTC June 20, 2022 at 16:00 UTC Meetings and Events Last Week’s Call Recordings: ● Q1 2022 Quarterly Strategy Review (QSR) | Forum | Video ● Open Decentralized Voter Committee | June 08, 2022 | Forum | Video ● Open Decentralized Voter Committee | June 09, 2022 | Forum | Video ● Collateral Onboarding Call #44 | Kredika AMA | Forum | Video ● Meet Your Delegate | Ep.13 Ft. mhonkasalo & teemulau and ChicagoDAO | Forum | Video ● Meet Your Delegate | Ep.14 ft. Chris Blec | Forum | Video ● Governance and Risk Call ep. 194 | Forum | Video ● Know Your MIP #12 | Core Unit Offboarding Amendment | Forum | Video Link (coming soon) Upcoming Calls: ● Focus On # 12: Centrifuge Indenture Trust Agreement Deep Dive | Forum | Join Link - Thursday 15:00 UTC ● MakerDAO Meet Your Delegate #15 - GovernanceHouse | Forum | Join Link - Wednesday 18:00 UTC Recurring: ● Open Decentralized Voter Committee | Forum | Join Link - Wednesdays & Thursdays at 19:00 UTC ● Governance & Risk Call | Join Link | Agenda - Thursdays at 17:00 UTC Core Unit Office Hours ⚓ MIPs, Links, and Resources List: 🎙 Have Feedback? We have some new ideas for improvement and would appreciate your feedback to help make the Weekly Relay more enjoyable publication. 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 for information and communication purposes only. Credit @nothsa and @Sol_Invictus