Governance Poll: Base Rate and PAXUSD Debt Ceiling Adjustments

https://blog.makerdao.com/governance-polls-september-28-2020/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents polls to implement adjustments to the Base Rate and PAXUSD Debt Ceiling.

Poll: Base Rate Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents several possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -3.75% to 4.25%.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, September 28 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on October 2 at 16:00 UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Base Rate parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Poll: Adjust the PAXUSD Debt Ceiling

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition for a PAXUSD-A Debt Ceiling increase from its current value to 100 million Dai.

The current value of the PAXUSD-A debt ceiling may change before this poll goes live. This value will depend on the outcome of the executive vote taking place on Friday, September 25, 2020.

This Governance Poll (FAQ) will be active for three days beginning on Monday, September 28 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, October 2, at 16:00 UTC.

Review

The PAXUSD-A Debt Ceiling was voted on in a forum signal request. Please review the thread to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this debt ceiling change will become active in the Maker Protocol after the Governance Security Module delay has expired.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Poll: Base Rate and PAXUSD Debt Ceiling Adjustments appeared first on Maker Blog.

Executive Vote: Debt Ceiling Increases, Base Rate Increase, and more

https://blog.makerdao.com/executive-vote-september-25-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

USDC-A Debt Ceiling Increase

As per the urgent signal request created by a risk contributor, the USDC-A debt ceiling will be increased from 400 million to 485 million if this proposal passes.

TUSD-A Debt Ceiling Increase

As per the urgent signal request created by a risk contributor, the TUSD-A debt ceiling will be increased from 50 million to 135 million if this proposal passes.

PAX-A Debt Ceiling Increase

As per the urgent signal request created by a risk contributor, the PAX-A debt ceiling will be increased from 30 million to 60 million if this proposal passes.

BAT-A Debt Ceiling Increase

As per this non-standard weekly poll which originated from this signal request, the BAT-A debt ceiling will be increased from 5 million to 10 million if this proposal passes.

Whitelist Kyber on the ETHUSD Medianizer Oracle

As per this non-standard weekly pollKyber will be whitelisted on the ETHUSD Medianizer Oracle if this proposal passes. See this thread for further details.

Whitelist DDEX on BTCUSD Medianizer Oracle

As per this non-standard weekly pollDDEX will be whitelisted on the BTCUSD Medianizer Oracle if this proposal passes. See this thread for further details.

Whitelist ETHUSD v1 Medianizer Oracle on ETHUSD Medianizer Oracle for Opyn

As per this non-standard weekly poll, the ETHUSD v1 Medianizer Oracle will be whitelisted on the ETHUSD Medianizer Oracle for Opyn if this proposal passes. It will also set the the ETHUSD Medianizer Oracle as the unique source of price of ETHUSD v1 Medianizer Oracle. See this thread for further details.

Whitelist yEarn Finance on BTCUSD OSM Oracle

As per this non-standard weekly pollyearn.finance will be whitelisted on the BTCUSD OSM Oracle if this proposal passes. See this thread for further details.

Base Rate Increase

As per the weekly Base Rate poll the Base Rate meta-parameter will be increased from 0% to 0.25% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

ETH-A Risk Premium Increase

As per this non-standard weekly poll which originated from this signal request, the ETH-A risk premium will be increased from 0% to 2% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Summary

Therefore, if this Executive proposal passes the following will occur:

Debt Ceiling Changes

  • The BAT-A Debt Ceiling will increase from 5 million to 10 million.
  • The USDC-A Debt Ceiling will increase from 400 million to 485 million.
  • The TUSD-A Debt will increase from Ceiling 50 million to 135 million.
  • The PAX-A Debt will increase from Ceiling 30 million to 60 million.
  • Due to the above debt ceiling changes, the Global Line parameter will increase from 1196 million to 1401 million.

Oracle Whitelisting

  • Kyber will be whitelisted on the ETHUSD Medianizer contract.
  • DDEX will be whitelisted on the BTCUSD Medianizer contract.
  • The ETHUSD v1 Medianizer will be whitelisted on the ETHUSD Medianizer contract for Opyn.
  • yearn.finance will be whitelisted on the BTCUSD OSM contract.

Rate Changes

  • The Base Rate meta-parameter will increase from 0% to 0.25%
  • The ETH-A Risk Premium will increase from 0% to 2%
  • The ETH-A Stability Fee will increase from 0% to 2.25%
  • The USDC-A Stability Fee will increase from 4% to 4.25%
  • The WBTC-A Stability Fee will increase from 4% to 4.25%
  • The TUSD-A Stability Fee will increase from 4% to 4.25%
  • The PAXUSD-A Stability Fee will increase from 4% to 4.25%
  • The BAT-A Stability Fee will increase from 4% to 4.25%
  • The MANA-A Stability Fee will increase from 12% to 12.25%
  • The ZRX-A Stability Fee will increase from 4% to 4.25%
  • The KNC-A Stability Fee will increase from 4% to 4.25%
  • The USDT-A Stability Fee will increase from 8% to 8.25%
  • The USDC-B Stability Fee will increase from 50% to 50.25%

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on these topics can be found on the MakerDAO governance forum. Please review any linked threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Debt Ceiling Increases, Base Rate Increase, and more appeared first on Maker Blog.

How Dai Is Becoming the Currency of the NFT Digital Art and Culture Market

https://blog.makerdao.com/how-dai-is-becoming-the-currency-of-the-nft-digital-art-market/

More and more artists have discovered the newest palette of tools waiting for them at the intersection of art and blockchain technology. Now, anyone can turn a piece of art into a one-of-a-kind digital asset called a non-fungible token (NFT). NFTs allow artists to cryptographically prove ownership of their work, as well as program, sell, transfer, and trade their art almost frictionlessly on the open market. What’s more, in blockchain marketplaces, art lovers purchase digital art with—you probably guessed it—digital cash. In fact, Dai has become a popular cryptocurrency in the digital art world because it’s a stable store of value that’s easily transferred worldwide. 

“The Dai stablecoin, which is already used to purchase NFTs in other sectors, including video gaming, is a perfect match for artists, museums, and art-auction platforms accepting cryptocurrency payments,” said Rune Christensen, CEO of the Maker Foundation and co-founder of MakerDAO. “The trustless, transparent, and secure nature of Dai gives artists and patrons from across the globe space to focus on the art, rather than the logistical realities of moving money from account to account.” 

Discover below how platforms and artists are using NFT technology and Dai integration to reimagine the art market, making it not only more accessible but more innovative than ever before.

Foundation

Foundation is a crypto-powered platform and marketplace for buying and selling unique and limited-edition goods, with prices set by supply and demand. The platform offers a range of features that enable artists to monetize their work, including token pre-sales to fund new series and high and low series price-setting to encourage competition between early buyers. Additionally, artists have individual smart contracts, which means specific conditions are embedded in the code. For example, an artist can receive not only the initial sale price of an NFT, but also earn an automatic commission on subsequent trades of that NFT.

“Foundation wants to define the concept of a cultural stock exchange. We love how Dai is open, transparent, and fair—values that deeply align with the cultural space.”

—Kayvon Tehranian, founder of Foundation

Foundation supports both Dai and credit card payments, and even offers an introduction to Dai titled, “Dai Is Culture’s Currency.”

“It’s exciting to work with Foundation and other platforms that support artists and creators with decentralized tools, such as Dai, that help enhance their ability to connect to and serve their audiences in a more personal and seamless manner.”

—Jen Senhaji, Business Development Associate, Maker Foundation

NFTs from all  types of artists sell for digital currency on Foundation.
Three artists currently featured on the Foundation home page. (Image courtesy of Foundation.)

OpenSea

OpenSea is one of the largest marketplaces for digital art and collectibles of all kinds. An aggregator of popular collections, the platform offers a range of NFTs— everything from Ethereum Name Service (ENS) Domains and Decentraland plots to F1 Delta Time Drivers and Axie Infinity’s Axies (digital pets). While not all of the platforms behind the collections have integrated Dai, OpenSea has, making the digital items they sell more accessible to all. 

“Dai is a critical component of the DeFi and NFT ecosystem. We’ve found that using Dai is particularly useful when pricing high-value assets, such as digital art and physical assets, where fluctuations in the price of other currencies, such as ETH, can have a bigger impact. We’re super excited about enabling more activity in Dai!”

—Devin Finzer, Co-founder of OpenSea

OpenSea marketplace features a huge range of NFTs and accepts Dai as payment for digital art.
OpenSea lists a huge range of NFTs, including these two F1 Delta Time Drivers. (Image courtesy of OpenSea.)

OpenSea also powers other NFT trading platforms, such as the marketplace in Somnium Space, a virtual-reality world with a blockchain-powered economy.That means anyone in the Somnium community can buy parcels with Dai and accept the stablecoin in the marketplace without worrying about fluctuations in crypto prices. 

Somnium’s marketplace for digital art and other NFTs accepts Dai as payment.
Somnium’s integrated marketplace for digital art and other NFTs is powered by OpenSea.

“Our vision is a full digital life inside VR. In the crypto world, the volatility of tokens, art, and other digital assets has both an upside and a downside. It is, therefore, great that the community can buy and sell Somnium Space parcels and art in Dai, which gives them more control over their assets. For example, you can buy a parcel for 1,000 Dai, build a music club, and two weeks later sell 10 lifetime-access tickets for 100 Dai each. You’re break-even without dealing with the price swings of a volatile currency, such as Ethereum.”

—Vita Pur, COO of Somnium Space

Async.art

Async allows users to create, sell, buy, collect, and trade artwork, but with a very cool twist: The art is programmable! Artists can create and tokenize a master work, as well as “layers” that sit on top of it and behave according to code. Collectors can buy one or more layers and change them within the scope of the artist’s specified characteristics. In other words, buyers can influence the look of the master as a group.Take a look at the following Async video that explains how the Mona Lisa’s expression might be programmed to change according to the price of ETH:

On September 5, the platform opened its first art auction for Dai with “Art Is the Currency of the Infinite,” a work by Latin-American artist Carlos Marcial,an enthusiastic Dai user and supporter of MakerDAO.

“Carlos Marcial was a natural first pick due to his personal background—he uses Dai and other stablecoins and has been for years—as well as his ability to make artwork that doubles as social commentary on global currency.”

— Lisa Liang, Co-founder and CMO of Async Art 

Carlos Marcial’s programmable art and other NFTs are sold for digital currency on Async.
 Marcial’s “Art Is the Currency of the Infinite” was created using 3D software and apps.

Olive Allen

Olive Allen is a New York-based artist whose work explores ideas of cultural shifts. Olive has created both one-off abstracts and limited-edition series in the past. One of her latest projects, however, The UnBearables, is very different. Described as “gamified artwork,” it pushes the boundaries of digital art even further. The series consists of a limited run of 265 NFTs, each of which represents one of seven different digital images that depict the current coronavirus-induced turmoil as “horrifically cute” collectible bears. 

The original run of The UnBearables sold on Nifty Gateway,a popular NFT trading platform that recently drew headlines for a record $55,555 digital art auction sale.

When The UnBearables went on sale, they were allocated at random; therefore, buyers did not know which bear NFT they would receive. All the NFTs are collectible, but some are more rare and valuable than others. It’s an unusual game of chance that ends when one buyer collects all seven bears. 

Olive Allen’s collectible NFT bears are gamified and sold on the digital art market for Dai currency.
Olive’s original collectible bears were described as “gamified artwork.” 

The UnBearables was so popular that Olive created a special series of 10 NFTs, called “Summer Bears.” One NFT was given away in a promotional competition; the rest are for sale on OpenSea, exclusively for Dai. In this series, the bears are depicted enjoying a summer activity, until the animated frame reveals a more mundane existence. It’s a play on dream versus reality—their summer fun stolen by COVID-19.

 The digital art market loves Olive Allen’s “Cruel Summer Bears,” sold exclusively for Dai currency.
Olive’s “Cruel Summer Bears” are being sold exclusively for Dai.

Museum of Contemporary Digital Art

The Museum of Contemporary Digital Art (MoCDA) is an online gallery that showcases digital art in its native medium and focuses on curation, education, and improving access to artists. It does so through regular events—discussions and presentations on topics ranging from the gamification of art to women in blockchain. For example, the video below is one of many panel discussions produced by the organization.

Panel conversation on the Gamification of Art, CADAF Online 2020

The MoCDA team works with major art and blockchain organizations, including the Tate, SuperRare, and the Blockchain Game Alliance, to bring exhibitions together.The museum accepts donations of ETH and Dai, as well as cash via credit card and PayPal.

“With the advent of cryptocurrencies and the increased interest around digital art collecting, we witnessed a shift towards collectors wanting to diversify their portfolio without compromising on the way most are used to acquiring new assets. With the NFT market booming and the constant highs and lows of the crypto market, we see Dai as a breakthrough solution for the art market, providing everyone with a fast and accessible way to access the crypto art market while having an enjoyable and safe experience throughout.”

—Serena Tabacchi, CEO of MoCDA

The MoCDA’s most recent NFT digital art exhibition, “Digital Bodies,” is popular in the market.
MoCDA’s most recent exhibition is titled “Digital Bodies.”

Dai: The Currency of Art And More 

The Digital Art world has proven to be an enthusiastic adopter of Dai, making it an extremely popular currency for this exciting movement. Offering art in the form of NFTs on the blockchain enables digital artists to sell and trade work on a platform that’s secure and guarantees traceability. There’s never any doubt about the provenance or ownership of an image, since successful forgery is practically impossible. As a result of these benefits, NFTs as a whole have surpassed $100 million in all-time sales.

As NFTs grow in popularity and as Dai adoption continues to increase, the mutually beneficial synergy that exists between the tokens will spur even more growth.  

Every day, people worldwide derive value from the Dai stablecoin and, by extension, the Maker ecosystem. Learn more about MakerDAO and the Dai stablecoin today. 

The post How Dai Is Becoming the Currency of the NFT Digital Art and Culture Market appeared first on Maker Blog.

Governance Polls: Oracle Whitelists, Prioritizing Real World Asset Collateral, and more

https://blog.makerdao.com/governance-polls-september-21-2020/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents polls to implement Oracle Whitelisting, prioritize Real World Asset Collateral, Community Greenlights, and more.

Whitelist Opyn on ETHUSD Medianizer Oracle (MIP10c9-SP7)

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Oracle Domain Team. The community can vote in this poll to express support or opposition to appending Opyn to the ETHUSD Medianizer Oracle whitelist to read price data.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

Please review the discussion MIP10c9 – SP7: Whitelist Opyn on ETHUSD Oracle to inform your position on this issue before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change change will be included in the weekly Executive Vote on the Friday following the conclusion of this poll.

If this poll ends with a ‘No’ majority, then no further action will be taken.

If the Friday executive passes, then this change will become active in the Maker Protocol after the Governance Security Module delay has expired.


Whitelist Kyber on ETHUSD Medianizer Oracle (MIP10c9-SP11)

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Oracle Domain Team. The community can vote in this poll to express support or opposition to appending Kyber to the ETHUSD Medianizer whitelist to read price data.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

Please review the discussion MIP10c9-SP11: Whitelist Kyber’s Promo Token Pricing Contract on ETHUSD Oracle to inform your position on this issue before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change change will be included in the weekly Executive Vote on the Friday following the conclusion of this poll.

If this poll ends with a ‘No’ majority, then no further action will be taken.

If the Friday executive passes, then this change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Whitelist DDEX on BTCUSD Medianizer Oracle (MIP10c9-SP8)

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Oracle Domain Team. The community can vote in this poll to express support or opposition to appending DDEX to the BTCUSD Medianizer Oracle whitelist to read price data.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

Please review the discussion MIP10c9-SP8: Whitelist DDEX on WBTCUSD Oracle to inform your position on this issue before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change change will be included in the weekly Executive Vote on the Friday following the conclusion of this poll.

If this poll ends with a ‘No’ majority, then no further action will be taken.

If the Friday executive passes, then this change will become active in the Maker Protocol after the Governance Security Module delay has expired.


Whitelist Yearn Finance on BTCUSD OSM Oracle (MIP10c9-SP10)

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Oracle Domain Team. The community can vote in this poll to express support or opposition to appending Yearn Finance to the BTCUSD Oracle Security Module whitelist to read current and queued price data.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

Please review the discussion MIP10c9-SP10: Whitelist Yearn Finance on BTCUSD Oracle to inform your position on this issue before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change change will be included in the weekly Executive Vote on the Friday following the conclusion of this poll.

If this poll ends with a ‘No’ majority, then no further action will be taken.

If the Friday executive passes, then this change will become active in the Maker Protocol after the Governance Security Module delay has expired.


Update the Data Model of the ETHUSD Oracle (MIP10c7-SP1)

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Oracle Domain Team. The community can vote in this poll to express support or opposition to updating the data model of the ETHUSD Oracle. The Data Model accounts for which sources are used to collect price data as well as how that data is processed into a canonical price.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

Please review the discussion MIP10c7-SP1: Update ETHUSD Data Model to inform your position on this issue before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change change will be included in the weekly Executive Vote on the Friday following the conclusion of this poll.

If this poll ends with a ‘No’ majority, then no further action will be taken.

If the Friday executive passes, then this change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Poll: Prioritising the onboarding of Real World Asset collateral in the short term

The Maker Governance Facilitator has placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition to domain teams prioritising the onboarding of Real World Asset collateral in the short term.

This non-standard weekly Governance Poll (FAQ) will be active for three days beginning on Monday, September 21 at 16:00 UTC.

Review

The signal request for RWA prioritisation can be found here along with the results. Please review the discussion there to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, the domain teams and community will have the support of MKR Token Holders for prioritising the onboarding of Real World Asset collateral in the short term.

If this poll ends with a ‘No’ majority, the domain teams and community will not have the support of MKR Token Holders for prioritising the onboarding of Real World Asset collateral in the short term.

Poll: Adjust the BAT-A Debt Ceiling

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition for a BAT Debt Ceiling increase from 5 million Dai to 10 million Dai.

This Governance Poll (FAQ) will be active for three days beginning on Monday, September 21 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, September 25, at 16:00 UTC.

Review

The BAT Debt Ceiling was voted on in a forum signal request. Please review the thread to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this debt ceiling change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Poll: Adjust the ETH-A Risk Premium

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition to increasing the ETH-A Risk Premium from 0% to 2%.

This Governance Poll (FAQ) will be active for three days beginning on Monday, September 21 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, September 25, at 16:00 UTC.

Review

The ETH-A Risk Premium was voted on in a forum signal request. Please review the thread to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on Friday, September 25, 2020.

If this poll ends with a ‘No’ majority, then no further action will be taken.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Poll: Base Rate Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents several possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -4% to 4%.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, September 21, at 16:00 UTC the results of which may inform an Executive Vote which will go live on Friday, September 25, at 16:00 UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Base Rate parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Monthly MIPs Governance Poll

The Governance Facilitators have placed the MIP3: Monthly Governance Poll into the voting system. This poll asks whether the bundled contents of this month’s Governance Cycle should proceed to an Executive Vote to be held on September 28, 2020. The bundled contents of this poll consist of:

This Monthly Governance Poll (FAQ) wwill be active for three days beginning on Monday, September 21 at 16:00 UTC.

Review

The proposals can be reviewed in this weeks weekly MIPs update here. It was also discussed on the latest Governance and Risk call on September 17, 2020.

Next Steps

MKR holders must vote to determine whether to accept or reject the bundle of proposals included within the Monthly Governance Poll, determining whether the bundle should proceed to the final ratification vote (Executive Vote) in the last week of the monthly Governance Cycle. The Executive Vote will be submitted on September 28, 2020 if the Governance Facilitators confirm a ‘yes’ outcome of the Monthly Governance Poll on the next Governance and Risk call on September 24, 2020.


Polls: Community Greenlights

Description

The Governance Facilitators have placed a series of governance polls into the voting system which asks whether the assets BAL, CAT, CGT, UMA, YFI, ARCA, cDAI, wNXM, REINNO, renBCH, renZEC, MOONI-ETH-USDC, MOONI-ETH-USDT, MOONI-ETH-WBTC, and BPT-80BAL-20WETH should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding the asset as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application of the following forum threads to inform your position before voting.
BAL – Forum Thread
CAT – Forum Thread
CGT – Forum Thread
UMA – Forum Thread
YFI – Forum Thread
ARCA – Forum Thread
cDAI – Forum Thread
wNXM – Forum Thread
REINNO – Forum Thread
renBCH – Forum Thread
renZEC – Forum Thread
MOONI-ETH-USDC – Forum Thread
MOONI-ETH-USDT – Forum Thread
MOONI-ETH-WBTC – Forum Thread
BPT-80BAL-20WETH – Forum Thread

Next Steps

The domain teams will use the outcome of these polls to inform the direction of their collateral onboarding work.

Resources

MIP9: Community Greenlight describes this type of poll and goes into more detail about how it interacts with the rest of the collateral onboarding process.

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Polls: Oracle Whitelists, Prioritizing Real World Asset Collateral, and more appeared first on Maker Blog.

Executive Vote: Enable TUSD, Reduce Stablecoin Liquidation Ratios, Other Changes

https://blog.makerdao.com/executive-vote-september-18-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Base Rate Increase

As per the weekly Base Rate poll the Base Rate meta-parameter will be increased from -2% to 0% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Enable new TUSD Implementation

As per the non-standard weekly poll in combination with this urgent signal request, the new TUSD implementation will be whitelisted on the Maker protocol if this proposal passes. TUSD will be re-enabled with the following parameters, which are a combination of the linked poll and the linked signal request.

  • Risk Premium: 4%
  • Liquidation Ratio: 101%
  • Debt Ceiling: 50 million
  • Auction Lot Size: 50,000
  • Minimum Bid Increment: 3%
  • Bid Duration: 6 hours
  • Max Auction Duration: 6 hours
  • Liquidation Penalty: 13%
  • Dust: 100 Dai

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%).

Liquidations will be disabled for TUSD-A.

Modifiy Stablecoin Liquidation Ratios

As per the non-standard weekly poll in combination with this urgent signal request, the Liquidation Ratio parameter on TUSD-A, USDC-A, and PAX-A will be reduced from 103% to 101% if this proposal passes.

Increase USDC-A Debt Ceiling

As per this urgent signal request, the Debt Ceiling parameter on USDC-A will be increased from 200 million to 400 million if this proposal passes.

Fix Gitcoin Feed Key Replacement on MANAUSD Oracle

As per this forum thread created by the MakerDAO Oracle domain team, the gitcoin feed key will be replaced on the MANAUSD Oracle if this proposal passes.

Summary

Therefore, if this Executive proposal passes the following will occur:

TUSD Implementation Whitelisted

  • The new TUSD Implementation will be whitelisted and enabled for use in the Maker Protocol.

Liquidation Ratios

  • The USDC-A Liquidation Ratio will decrease from 103% to 101%
  • The PAXUSD-A Liquidation Ratio will decrease from 103% to 101%
  • The TUSD-A Liquidation Ratio will decrease from 120% to 101%

Debt Ceilings

  • The USDC-A Debt Ceiling will increase from 200 million to 400 million
  • The TUSD-A Debt Ceiling will increase from 2 million to 50 million
  • The Global Line parameter will increase from 948 million to 1,196 million

Stability Fees

  • The Base Rate meta-parameter will be increased from -2% to 0%
  • The TUSD-A Stability Fee will be increased from 0% to 4%
  • The USDT-A Stability Fee will be increased from 6% to 8%
  • The PAXUSD-A Stability Fee will be increased from 2% to 4%
  • The USDC-A Stability Fee will be increased from 2% to 4%
  • The USDC-B Stability Fee will be increased from 48% to 50%
  • The BAT-A Stability Fee will be increased from 2% to 4%
  • The WBTC-A Stability Fee will be increased from 2% to 4%
  • The KNC-A Stability Fee will be increased from 2% to 4%
  • The ZRX-A Stability Fee will be increased from 2% to 4%
  • The MANA-A Stability Fee will be increased from 10% to 12%

Oracles

  • The Gitcoin feed key will be replaced on the MANAUSD Oracle

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on this topic can be found on the MakerDAO governance forum. Please review the linked threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Enable TUSD, Reduce Stablecoin Liquidation Ratios, Other Changes appeared first on Maker Blog.

How Ethereum Smart Contracts Power Dai, the Maker Protocol, and DeFi

https://blog.makerdao.com/how-ethereum-smart-contracts-power-dai-the-maker-protocol-and-defi/

Smart contracts are operations written in software code that run on a blockchain platform. No third party is needed to ensure their execution; the coded processes are carried out automatically when the specified conditions are met. Ethereum’s smart contracts underpin all of the decentralized tokens, applications, and protocols, including Dai and the Maker Protocol, that run on the Ethereum blockchain. 

Simply put, smart contracts are essential to decentralized finance (DeFi) and make it possible for MakerDAO to operate in a decentralized way. They power the Protocol, the Dai stablecoin, which is the most-used cryptocurrency in the decentralized finance (DeFi) space, Maker Vaults through which Dai is generated, and MakerDAO community-based governance. Smart contracts also enable the creation of non-fungible tokens (NFTs)—one-of-a-kind assets that play important roles in the Maker ecosystem, including providing a bridge for using real-world assets as collateral types.

Transparent, reliable, and trustless, smart contracts are key to shaping the future of global finance.

What’s Behind Ethereum Smart Contracts?

Whenever you interact with a conventional web service, such as an email account or social network, the software you access runs on a centralized web server. You trust and rely on the companies that provide these services to keep them running, despite that they are vulnerable to outages, interference, and hacking. When you interact with a decentralized application (dapp) on a blockchain, however, it’s much different—there’s no need to trust any person or entity.

Smart contracts run exactly as programmed; therefore, no overseer is necessary. Trust is placed in the software code to prevent interference and any single point of failure (a collapse of one aspect of the system that would cause a breakdown of the entire system). 

To that end, smart contract code should undergo rigorous security audits, similar to the security and verification efforts surrounding the launch of Multi-Collateral Dai (MCD) on the Maker Protocol in 2019. Such reviews are especially critical for digital currencies and financial systems. 

ERC-20 Token Contracts

On the Ethereum platform, some smart contracts represent and manage tokens. The Dai token contract, for instance, manages the accounting for external Dai balances and issues approvals for transfers. Like many other tokens on Ethereum, Dai was created according to a widely-accepted standard called ERC-20. 

The ERC-20 standard encompasses rules for token operation. It also enables composable infrastructure and interoperability between different projects. In other words, because Dai is an ERC-20 token, it can easily be integrated into dapps on the Ethereum blockchain that are compatible with the ERC-20 standard. As such, Dai is composable money.    

What’s more, because any ERC-20 token can be added as a collateral asset to the Maker Protocol (if approved by Maker governance), the smart contract into which one asset is deposited in order to generate Dai can be used as an open source template to create another. This is done through contract adapter code.

Ethereum smart contracts enable the creation of NFTs, including those used in blockchain-enabled games.
A snippet of contract adaptor code used to create smart contracts for most collateral types.

ERC-721 Non-Fungible Token (NFT) Contracts

While most tokens are divisible, non-fungible tokens (NFTs), which are based on the ERC-721 token standard, are used to digitally represent indivisible items. For example,  unique works of art, trading cards, and collectible objects in video games can all be represented by NFTs. The smart contracts behind these tokens not only enable the items to be sold and traded efficiently and securely, but also prove origin and ownership. NFTs now represent a large and fast-growing element of the token economy. 

Ethereum smart contract adaptor code acts as a type of template to help create smart contracts for most collateral types.
DAInerys Vaultborn is a Dai-branded NFT  used in the blockchain-enabled game Forgotten Artifacts.

Because NFTs have value, there is no reason they could not be added to the Maker Protocol as collateral types, if approved by Maker governance. For example, a piece of art or a classic car could be used as collateral against which Dai could be generated.

Smart Contracts for Maker Governance

MakerDAO is self-governed, meaning that holders of MKR, its governance token, participate in polls and executive votes to make changes and additions to the Maker Protocol, its processes, and the DAO itself. Importantly, the voting process is written in smart contracts.

Individual MKR holders interact with the voting contract, and their decisions are recorded permanently on the blockchain for transparency. That contract collects the votes, which are weighted in proportion to the number of MKR tokens each user deploys to the voting contract. So, larger holders have greater influence. The voting contract then trustlessly processes and records the vote results. 

Next, another smart contract is created to implement the changes agreed to by voters. Currently, a member of the Maker Foundation’s Smart Contract Team creates that contract, which is called a “spell.”  As Maker governance moves toward complete decentralization, a goal is to make the process of spells automatic, removing a single point of failure.

This process of smart contract-powered governance is what allows MakerDAO to function as a Decentralized Autonomous Organization.

Ethereum Smart Contracts: The Backbone of Dai, the Maker Protocol, and DeFi 

Ethereum smart contracts are self-executing agreements that power decentralized tokens, dapps, and protocols. They underpin every major element of MakerDAO, from Dai creation to governance, providing a robust set of financial tools that fuel DeFi.  Thanks to smart contracts, anyone can generate Dai and enjoy the fundamental benefits of transparency, security, and efficiency.

The Maker Foundation publishes educational and informative content on the Maker blog and its social media channels. The MakerDAO Forum is a major hub of grassroots community-written materials and activity, and the starting point for in-depth discussions regarding the Maker Protocol and Maker governance. 

The post How Ethereum Smart Contracts Power Dai, the Maker Protocol, and DeFi appeared first on Maker Blog.

Governance Poll: Domain Team Onboarding, Collateral Onboarding, and more

https://blog.makerdao.com/governance-polls-september-14-2020/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents polls to implement Domain Team onboarding, Collateral Onboarding, and more.

Inclusion Poll for Domain Team Onboarding – Risk (MIP7c3-SP3)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP7c3-SP3 – Domain Team Onboarding (Risk)) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Poll: Reduce USDC-A and PAX-A Liquidation Ratio

The Governance Facilitators have placed a Governance Poll into the voting system which presents a number of possible Liquidation Ratio options for the USDC-A and PAX-A Vault types. Voters are now able to signal their support for a USDC-A and PAX-A Liquidation Ratio within a range of 105% to 101%.

Note that this poll is a result of both a recent signal request and emergency action.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, September 14 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, September 18 at 16:00 UTC.

Review

The signal request for reducing the USDC-A Liquidation Ratio can be found here along with the results.

For additional context, please see the following emergency signal request and the subsequent expedited executive vote.

Please review the discussion on the linked threads to inform your position before voting.

Next Steps

If the expedited executive vote posted on Monday, September 14 passes, then the options of 105% and 104% will not lead to any further action regardless of this poll’s outcome because this could result in unbacked DAI.

Given the above caveat, on the Friday following the conclusion of the poll, there will be an Executive Vote asking MKR token holders if they support or reject the change proposed by this Governance Poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Inclusion Poll for LRC Collateral Onboarding (MIP12c2-SP4)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP12c2-SP4 – LRC Collateral Onboarding) should be included in the Monthly Governance Poll.

Note that this proposal is being proposed for the second time, having failed the first time at the inclusion stage in the August governance cycle.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for COMP Collateral Onboarding (MIP12c2-SP5)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP12c2-SP5 – COMP Collateral Onboarding) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Poll: Quantitative Easing aka Manual PSM

The Maker Governance Facilitator has placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition to a community implementation of Quantitative Easing (aka Manual PSM).

This non-standard weekly Governance Poll (FAQ) will be active for three days beginning on Monday, September 14 at 16:00 UTC.

Review

The signal request for Quantitative Easing can be found here along with the results. Please review the discussion there to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, the community will have MKR Token Holders support for providing an implementation.

If this poll ends with a ‘No’ majority, implementation of Quantitative Easing will not be pursued.

Inclusion Poll for Domain Team Onboarding – Smart Contracts (MIP7c3-SP4)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP7c3-SP4 – Domain Team Onboarding (Smart Contracts)) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Poll: Base Rate Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents several possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -6% to 2%.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, September 14, at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, September 18, at 16:00 UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Base Rate parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Inclusion Poll for Dark Spell Mechanism (MIP15)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP15 – Dark Spell Mechanism) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for Declaration of Intent – Dai Flash Mint Module (MIP13c3-SP2)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP13c3-SP2 – Declaration of Intent – Dai Flash Mint Module) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Metamask 0xcf…8d1a

Connected wallet: 1.0010 MKR

Inclusion Poll for LINK Collateral Onboarding (MIP12c2-SP6)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP12c2-SP6 – LINK Collateral Onboarding) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

Please review the discussion thread to inform your position on this proposal before voting. It was also mentioned and possibly discussed on the governance call on September 10, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on September 17, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Poll: Approve New TUSD Implementation with Original Risk Parameters

The Maker Foundation Smart Contracts Team has placed a Governance Poll into the voting system to approve/disapprove the new TUSD implementation. Voters are now able to signal their support to:

Approve the new TUSD implementation with the following risk parameters:

  • TUSD-A Ceiling (Vat[TUSD-A].line) 2,000,000 DAI
  • Min DAI in TUSD-A Vault (Vat[TUSD-A].dust) 100 DAI
  • TUSD-A liquidation lot size (Cat[TUSD-A].dunk) 50,000
  • TUSD-A liquidation penalty (Cat[TUSD-A].chop) 13.00%
  • TUSD-A stability fee (Jug[TUSD-A].duty) 0.00%
  • TUSD-A auction min. bid increase (Flip[TUSD-A].beg) 3.00%
  • TUSD-A auction bid duration (Flip[TUSD-A].ttl) 6 hrs
  • TUSD-A auction duration (Flip[TUSD-A].tau) 3 days
  • TUSD-A col. ratio (Spot[TUSD-A].mat) 120%

These parameters match the original risk parameters with the exception of the dust parameter, which has been updated to 100 DAI. Also worth noting is that a Risk Premium was never determined, instead Stability Fee was directly set to 0%.

Please note that liquidations for TUSD will be disabled.

This Governance Poll (FAQ) will be active for three days beginning on Monday, September 14 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, September 18, at 16:00 UTC.

Review

The initial proposal for approving the new TUSD implementation can be found here along with the poll results.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on Friday, September 18.

If this poll ends with a ‘No’ majority, the TUSD collateral type will remain in its current state.

Vault Compensation Plan Approval Poll

The MakerDAO Governance Facilitator has placed a Governance Poll into the voting system on behalf of the community, which the community can use to signal support for compensating vaults affected by liquidations during the March 12 market crash. This poll will run for two weeks, from Tuesday, September 8 at 16:00 UTC to Tuesday, September 22 at 16:00 UTC.

Note: This poll was pushed back a day after the initial version failed. See details here.

Review

The Vault Compensation Plan was discussed in the Forums and presented on the August 13 Maker Governance and Risk Call. Voters are encouraged to review the plan document and discussion to inform their position before voting.

This poll uses ranked choice voting. Details about ranked choice voting can be found here. The community is encouraged to select multiple options in their order of preference, while withholding their vote for any options they consider unacceptable.

Claim amounts will be calculated based upon the compensation percentage decided in this poll, using the “tab change in relation to collateral change” calculation method described in the plan document, paid out in MKR tokens at a rate of 1 MKR per 250 DAI. Individual vault compensation will be determined by the formulae below:

MKR compensation amount = (collateral deficit percent * collateral value in DAI) / 250 collateral deficit percent = compensation percentage (determined by this poll) - percent of vault collateral already received from liquidation collateral value in DAI = debt tab at time of liquidation * liquidation ratio

The MKR amounts shown for each percentage represent the sum of calculated compensation for ETH vaults, multiplied by 1.5. The additional 50% buffer is intended to cover claims from BAT vaults as well as from vaults that self-liquidated their position. It is considered highly unlikely that 100% of eligible vaults will claim compensation, so any residual unclaimed MKR can be retrieved and disposed of by MKR governance once the compensation process has been completed.

In addition to the MKR required for paying compensation claims, each poll option except for “0% (oppose vault compensation)” or “Oppose current compensation plan (support vault compensation)” also authorize 50,000 DAI to be released to the compensation working group to cover operating expenses such as working group labor and smart contract development. Any unused DAI funds will be returned to the Maker surplus account upon project completion.

Next Steps

If this poll resolves with a majority of votes in favor of 3% through 24.67% compensation, the compensation working group will proceed with development and voting steps outlined in phase 2 of the vault compensation plan.

If this poll resolves with a majority of votes in favor of “0% (oppose vault compensation)”, this matter will be considered closed by governance and no further action will be taken regarding vault compensation.

If this poll resolves with a majority of votes in favor of “Oppose current compensation plan (support vault compensation)”, or if this poll resolves with no option receiving at least 50% support, this will be considered a vote of no confidence in the current vault compensation working group. While working group members will remain available for consultation, other members of the community will be empowered to take leadership over the vault compensation process.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO.

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Poll: Domain Team Onboarding, Collateral Onboarding, and more appeared first on Maker Blog.

Executive Vote: Increase the USDC-A Debt Ceiling, Whitelist tBTC on the ETHBTC Oracle

https://blog.makerdao.com/executive-vote-september-11-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Increase the USDC-A Debt Ceiling

As per this signal request thread, the USDC-A Debt Ceiling will be increased from 40 million to 100 million if this proposal passes. This is an expedited change triggered by the increased usage of the USDC-A vault type coupled with the recent peg deviation and as a result of advice provided by a senior risk contributor.

Community discussion of this change may be found within the linked thread.

Whitelist tBTC on the ETHBTC Oracle

As per the MIP10c9-SP9 poll that took place under the weekly cycle tBTC will be whitelisted on the ETH/BTC Oracle if this proposal passes.

Community discussion of this change may be found here.

Summary

Therefore, if this Executive proposal passes the following will occur:

  • The USDC-A Debt Ceiling will be increased from 40 million to 100 million.
  • The Vat global line parameter will increase from 763 million to 823 million.
  • tBTC will be whitelisted on the ETHBTC Oracle.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on these topics can be found on the MakerDAO governance forum. Please review any linked threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Increase the USDC-A Debt Ceiling, Whitelist tBTC on the ETHBTC Oracle appeared first on Maker Blog.

Maker Governance Review: August 2020

https://blog.makerdao.com/maker-governance-review-august-2020/

The Maker Governance Review is a monthly recap of all Governance activity, from Governance blog posts and polling/voting history to Governance Cycle progress. Each review is written by the Maker Improvement Proposals (MIPs) Editor to keep the Maker community informed of Governance developments.

Top Governance News

  • Executive Vote: Onboard USDT and PAX, Multiple Other Changes – September 4, 2020
    • Onboard USDT and PAXUSD 
    • WBTC-A Debt Ceiling from 80 Million to 120 Million
    • Increase the Base Rate from -6% to -2%
    • Appoint Argent as an Oracle Light Feed
    • Appoint MyCrypto as an Oracle Light Feed
  • Executive Vote: Raise the ETH-A Debt Ceiling – September 2, 2020

August’s Governance Polls and Executive Votes 

Governance Cycle Updates

Key Outcomes of the Fourth Governance Cycle

The fourth Governance Cycle, which began August 3 and ended on August 28, included two proposals—one related to the DAO’s decentralized workforce and the other signaling an intention to create a Vault Holder Advocacy Group: 

These proposals were ultimately rejected by the Maker Governance Community.  

MIPs In Progress

Nine proposals, outlined below, are currently in the Request for Comments (RFC) phase. This means it is time for the Maker community to provide feedback on each or request changes from Proposal Authors. 

Proposals in the Request for Comments (RFC) Phase:

Proposals in the Formal Submission Phase (Planned for the October Governance Cycle)

The Formal Submission phase is when MIPs or Subproposals have concluded the RFC phase and are proposed to enter the Governance Cycle.

Collateral Onboarding: 


Domain Team Onboarding and Offboarding:

Other

Pre-MIP Discussions

Collateral Onboarding Community Greenlight Polls 

Community Greenlight Polls are Governance polls that are specific to gauging community sentiment for collateral onboarding. Specifically, Greenlight Polls allow MKR token holders to inform the Domain Teams (Risk, Smart Contracts, and Oracles) of their preferences for collateral types that have been proposed through Collateral Onboarding Applications. These polls run for a period of two weeks starting the third week of the Governance Cycle. 

While Domain Teams are free to choose their own workload, an on-chain Governance poll provides them with key insights into community sentiment for each collateral type proposed. In addition, it is important to gather the opinions of MKR token holders before the full domain work takes place, as a matter of efficiency.

August’s Collateral Onboarding Community Polls went live on August 17 and ended on August 31. The polls, 12 in total, covered the following collateral types:

Results: All of the above collateral assets were greenlit by the community, with the exception of CHI, which was deferred. 

What’s Ahead?

The fifth Governance Cycle began on September 7, signaling the start of the Formal Submission period for new MIPs, Subproposals, and Collateral Applications. The formal submission period ended on September 9. Proposals will be approved or denied by Governance Facilitators on the weekly (Thursday) Governance call. If approved, proposals will enter the Governance Cycle in week two of the August Cycle through Inclusion polls on September 14. 

The Weekly MIPs Update is typically posted in the Maker Forum on Sundays or Mondays. The update summarizes the most recent events in the world of MIPs, the previous week’s activity, what to expect from the current week, and what’s on the agenda for the next week. It also covers updates with respect to Governance polls and votes, collateral onboarding, and rate adjustments.

Resources

To stay current on Governance, risk, and community issues, bookmark the MakerDAO Public Events Calendar. Newcomers to Maker might want to review our series of posts on the MakerDAO Governance Risk Framework.

Also, remember to review the Maker Improvement Proposals category in the Maker Forum and visit the #mips rocket.chat channel to discuss topics related to MIPs, the Self-Sustaining MakerDAO Initiative, and long-run Governance. 

To learn more about the Governance activities that occur during the Monthly Governance Cycle, see MIP3 for a week-by-week breakdown. 

For the most current MIP-related activity, see the official MIPs Github page.

About Maker Improvement Proposals

MIPs support the organic growth that further expands MakerDAO’s self-sustainability by providing the Maker community and all stakeholders with a standard approach to proposing improvements, specifications, and process and state changes to the Maker Protocol and MakerDAO. 

The post Maker Governance Review: August 2020 appeared first on Maker Blog.

Meet Sandy Khaund, the Maker Foundation’s Newest Board Member

https://blog.makerdao.com/meet-sandy-khaund-the-maker-foundations-newest-board-member/

On August 10, the Maker Foundation Board appointed Sandy Khaund, Vice President of Blockchain Products at Ticketmaster, as a non-Foundation Executive director. Sandy joins non-executive directors Tonya M. Evans (Board Chairperson) and Shefali Roy, who were appointed in April, Foundation directors Rune Christensen (Foundation CEO) and Steven Becker (Foundation COO), and Cayman Island directors, Eduardo Silva and David van Dunyhoven.

As a serial entrepreneur with extensive blockchain and board experience, Sandy will prove invaluable in helping to fulfill the board’s remit of providing oversight of strategic and financial direction for the Foundation, while its leadership team concentrates on day-to-day operation. 

We recently sat down with Sandy to discuss his background, interests, and what the opportunity to contribute to the success of MakerDAO and Dai means to him.

Maker: You began your career designing data transmission systems for NASA satellites. After that, you moved on to Microsoft, Intel, and Time Warner, before founding UPGRADED, a system that converts traditional event tickets to digital assets using smart contracts. Less than three years later, UPGRADED was acquired by Ticketmaster. Is there a thread that runs through your interests and expertise?

Sandy Khaund: Like many people, I’m a fan of exciting new technologies. But I think what makes me unique is that my focus has been on the pragmatic application of technologies for radical change in how people operate in their everyday lives. My engineering background allows me to appreciate the technical marvels, while my MBA helps me consider the commercial aspects. I’ve always been proud of keeping a balance. 

At Lockheed Martin, I worked on GPS and DIRECTV satellites that are household names today. Twenty-five years ago, getting hundreds of television channels through a small satellite dish seemed absurd, as did the possibility of a mapping device embedded in a phone. Today, those technologies are widespread and essential to our lives.

At Intel, I worked on chipsets for the Pentium microprocessor, which played a critical role in the proliferation of the PC and the internet. Microsoft gave me a chance to help introduce the world to .NET and ultimately promote open source.

In my last couple of roles, I got to work on sports technologies and in-stadium experiences, which culminated with identifying the use of blockchain technology for event tickets. And that’s been my focus for the last five years.

Sandy Khaund is a non-Executive Director of the Maker Foundation Board

MakerDAO appeals to me because of its brilliant engineering and implementation, as well as its efficiency and emphasis on stability—pegging Dai to the US Dollar. The practical application of Dai as a critical tool in global financial markets makes me think this could be the most impactful product that I’ve been engaged with yet.

Maker: When did you first encounter blockchain technology, and what potential did you see in it?

SK: About seven years ago, I was recruited for a CTO position at a bitcoin company.  While I had a high-level understanding of bitcoin, I needed to do some research before interviewing. I remember reading one particular book and thinking, “If this ever takes off, it can truly change the world.” I didn’t get the role, but I did buy bitcoin. So I like to say it’s the most profitable job I never got.  

Years later, I saw how blockchain could solve fake ticketing issues, given how it manages the double-spend problem. If blockchain technology could be used to secure billions of dollars of currency, it could certainly handle a ticket to a Foo Fighters concert. That realization spurred UPGRADED and changed my life.

Maker:  What do you see as the most significant challenges to the adoption of blockchain tech, including the Maker Protocol? How ready is a traditional-minded world for a system designed to bring financial stability and transparency to the global economy?

SK: There are some concerning issues around cryptocurrency. Specifically, how can it be taken seriously as a transactional currency with its insane volatility and what I like to call the tulip problem, where people describe the value of any token as irrational because there’s nothing behind it (similar to the 17th century tulip boom). But after reading the MakerDAO white paper, I realized that the Maker Protocol solved some of the key problems while still delivering so many of the values of cryptocurrency. 

That said, one of the biggest challenges that I had with UPGRADED was that I disappointed a lot of purists by doing some things that put pragmatism over any purity test. I can’t tell you how many people wanted me to do an ICO and incorporate a token, even though that wasn’t what the primary decision-makers in the industry wanted. Ultimately, I was more concerned about adoption of the technology then I was about staying true to the original premise, so I ignored the so-called experts. I think the MakerDAO team has taken that same pragmatic approach to decentralized finance, and I think that’s why it has gained—and will continue to gain—so much momentum.

Maker: You were pushing open source technologies at Microsoft in the early 2000s, a time when that was viewed as an anathema by the establishment. What did that experience teach you, and did it affect the way you now approach the task of helping to shape the future of DeFi  

SK: The world owes so much to open source software, but it was misunderstood by so many in the early days. Much of my effort was on education and touting the benefits of open source to affect change and ultimately benefit Microsoft customers. We worked closely with the developer community and cultivated internal and external advocates to help us champion the cause. But it wasn’t until years later that open source gained full acceptance at Microsoft. Its cloud services leverage everything from Linux to NodeJS, and the company even purchased GitHub, which is a more prevalent version of an open source site I co-founded while at Microsoft called CodePlex. 

Resistance was inevitable because meaningful change rarely happens without some pushback. They say the arc of history bends towards justice. I believe the arc of technology bends towards the optimal solution. It’s what ultimately happened with open source, and I’m confident that the same will happen with DeFi. It’s about building great products, educating people, and growing the community in a meaningful way. The MakerDAO team knows that. My goal is to help them continue that mission. 

Maker:  You’re involved in a volunteer capacity with Women’s Audio Mission and Inventors University, two California-based educational technology projects for women and girls. Why and how did you choose to assist those organizations specifically?

SK: Engineers and computer scientists are defining the future. As long as we have a gender equity problem in STEM fields, social progress will be stunted. Today, for example, less than 5% of people working in the music production and recording arts sectors are women. By supporting girls and women, particularly those of color, who want to enter technical fields through audio engineering, we help create a better, more diverse world. 

Women’s Audio Mission is an organization that has been around for 16 years. Located in the San Francisco Bay Area, it provides young women and girls with hands-on audio engineering training, career counseling, work experience, and job placement in the music, radio, film, television, and web industries. I’m honored to be a board member, and humbled by the organization’s amazing work.

Inventors University is a personal effort, as I co-founded it in 2017 with my two daughters, who were 11 and 8 at the time. It, too, has a gender equity in STEM goal, but with a twist—my daughters teach the classes. I wanted them to learn about those who aren’t as fortunate and empathize with them. I wanted them to be in service to those who need their help. The school started with a group of eight girls from low-income families. Each was given a Raspberry Pi computer and taught that computers could be instruments in production, not consumption. Every Saturday morning for three months, the girls gathered at the local library to geek-out on fun coding projects for a couple  of hours. My eldest daughter taught Python, while my youngest taught a visual language from MIT called Scratch, before switching to 3-D modeling last year. My wife was also heavily involved. Unfortunately, the coronavirus scrapped our plans for 2020. 

Maker: In April, you tweeted, “I usually save the good scotch for especially great days and especially hard days.” When was your last Macallan, and why?

SK: I love this question. It was in late-June and in honor of a great day. I’d just completed the first session of the Weiji Summer Foundry, an effort to find opportunity from the pandemic through some talented college entrepreneurs. In April, I was set to speak at Cornell University, my alma mater, about blockchain tech and entrepreneurship. The Coronavirus canceled my plans. I was disappointed, but the students had it much worse—many had their internships rescinded. I wanted to help, to provide some of those students with enough cash to start their own businesses over the summer. That’s how Weiji was born.

Dozens of students applied, and we ended up with six outstanding entrepreneurs—half of them women, half of them black, and half of them immigrants—across five exciting businesses. We’ve met every Sunday morning and follow a program I created with Sean Branagan, a good friend from the Newhouse School at Syracuse University, and my youngest daughter. We host guest speakers, who all started businesses in their early 20s, and hold one-on-one mentor sessions. It’s been an incredibly rewarding experience.

I don’t have too many moments where I feel the need to pat myself on the back, as I always worry that success can be the enemy of ambition. But on that night of that tweet, I poured a glass of Macallan 15, and allowed myself to appreciate what I had done, especially in the middle of such a difficult time for the world. 

Maker:  You’ve been a keen runner for 25 years. How often and how far do you run, and what’s your favorite runner’s app?  

SK: I run a 10K (6.2 miles) two or three times a week. I don’t have a runner’s build and I no longer run as fast as I used to, but I can handle the distance and it keeps me in shape. I’ve been using Nike+ for the last 14 years, and I’m nearing 11,000 miles. Given the pandemic, running has been a nice way to maintain my sanity and guarantee some time away from a screen.

About the Maker Foundation Board of Directors

The Maker Foundation Board of Directors regularly reviews the progress made by the Foundation’s leadership in achieving its strategic objective, and provides appropriate oversight of strategic and financial direction for the Foundation. The board may also seek advisors and visionaries with expertise in operating open source projects and implementing/operating financial inclusion programs to assist in its work. 

Learn More About MakerDAO and Dai

The Maker Foundation publishes educational and informative content on the Maker blog and its social media channels. The MakerDAO Forum is a major hub of grassroots community-written materials and activity, and the starting point for in-depth discussions regarding the Maker Protocol and Maker governance. 

The post Meet Sandy Khaund, the Maker Foundation’s Newest Board Member appeared first on Maker Blog.

Executive Vote: Increase ETH Debt Ceiling to 420 Million

https://blog.makerdao.com/executive-vote-august-18-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Increase the ETH Debt Ceiling

As per the recent poll prompted by the MakerDAO Risk Team located here, this proposal asks whether the ETH Debt Ceiling should be increased from 340 million to 420 million.

Summary

Therefore, if this Executive proposal passes the following will occur:

  • The ETH-A Debt Ceiling will increase from 340 million to 420 million.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on this issue can be found here. Please review this thread to inform your position before voting.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Increase ETH Debt Ceiling to 420 Million appeared first on Maker Blog.

Governance Poll: Base Rate adjustment, ETH Debt Ceiling, Greenlight Polls, and more

https://blog.makerdao.com/governance-polls-august-17-2020/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents polls to implement the Base Rate adjustment, raise the ETH Debt Ceiling, Community Greenlight polls, and more.

Poll: Base Rate Adjustment 

The Governance Facilitators have placed a governance poll into the voting system which presents several possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -10% to -2%.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, August 17 at 16:00UTC, the results of which may inform an Executive Vote which will go live on Friday, August 21 at 16:00UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Base Rate parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Poll: Adjust the ETH-A Debt Ceiling

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Foundation Risk Team. The community can use this poll to express support or opposition to increasing the ETH-A Debt Ceiling from 340 million to 420 million.

This Governance Poll (FAQ) will be active for one day beginning on Monday, August 17 at 16:00 UTC, the results of which may inform an Executive Vote (FAQ) which will go live later this week.

Review

Please review the [Discussion] ETH-A Debt Ceiling Raise forum thread to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in either in the Executive Vote on Friday, August 21 2020 or it will be included in an expedited Executive Vote prior to that time.

Poll: MIP9 Community Greenlight Poll – BUSD (Binance USD)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset BUSD (Binance USD) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding BUSD (Binance USD) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – CHI (Chi Gastoken)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset CHI (Chi Gastoken) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding CHI (Chi Gastoken) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – GUSD (Gemini USD)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset GUSD (Gemini USD) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding GUSD (Gemini USD) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – HBTC (Huobi Global BTC)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset HBTC (Huobi Global BTC) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding HBTC (Huobi Global BTC) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – HTC-DROP (Harbor Trade Credit DROP)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset HTC-DROP (Harbor Trade Credit DROP) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding HTC-DROP (Harbor Trade Credit DROP) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – NS-DROP (New Silver DROP)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset NS-DROP (New Silver DROP) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding NS-DROP (New Silver DROP) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – REN (REN)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset REN (REN) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding REN (REN) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – TAUD (TrueAUD)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset TAUD (TrueAUD) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding TAUD (TrueAUD) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – TCAD (TrueCAD)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset TCAD (TrueCAD) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding TCAD (TrueCAD) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – TCAD (TrueCAD)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset TCAD (TrueCAD) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding TCAD (TrueCAD) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – TGBP (TrueGBP)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset TGBP (TrueGBP) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding TGBP (TrueGBP) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – UNI-V2-DAI-ETH (UniswapV2 Dai-Eth Liquidity Token)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset UNI-V2-DAI-ETH (UniswapV2 Dai-Eth Liquidity Token) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding UNI-V2-DAI-ETH (UniswapV2 Dai-Eth Liquidity Token) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Monthly MIPs Governance Poll

The Governance Facilitators have placed the MIP3: Monthly Governance Poll into the voting system. This poll asks whether the bundled contents of this month’s Governance Cycle should proceed to an Executive Vote to be held on August 24, 2020. The bundled contents of this poll consist of:

This Monthly Governance Poll (FAQ) will be active for approximately 3 days beginning on Monday, August 14 at 16:00 UTC.

Review

The proposals can be reviewed in this weeks weekly MIPs update here. It was also discussed on the latest Governance and Risk call on August 13, 2020.

Next Steps

MKR holders must vote to determine whether to accept or reject the bundle of proposals included within the Monthly Governance Poll, determining whether the bundle should proceed to the final ratification vote (Executive Vote) in the last week of the monthly Governance Cycle. The Executive Vote will be submitted on August 24, 2020 if the Governance Facilitators confirm a ‘yes’ outcome of the Monthly Governance Poll on the next Governance and Risk call on August 20, 2020.

Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Poll: Base Rate adjustment, ETH Debt Ceiling, Greenlight Polls, and more appeared first on Maker Blog.

Executive Vote: Modify Multiple System Parameters

https://blog.makerdao.com/executive-vote-august-14-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Reduce the Base Rate

As per the weekly Base Rate poll the Base Rate meta-parameter will be reduced from -4% to -6% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Adjust the Dust Parameter

As per the non-standard weekly poll, the dust parameter for each vault type will be increased from 20 DAI to 100 DAI if this proposal passes.

The dust parameter is the minimum amount of DAI that a user can borrow from a particular vault.

Community discussion on this change can be found here.

Adjust the BAT Risk Premium

As per the non-standard weekly poll, the BAT Risk Premium will increase from 0% to 4% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premium using the formula Stability Fee = max(Base Rate + Risk Premium, 0%).

Community Discussion on this change can be found here.

Increase the Surplus Auction Buffer

As per the non-standard weekly poll, the Surplus Auction Buffer will increase from 500K DAI to 2M DAI if this proposal passes.

The Surplus Auction Buffer is also known as the ‘System Surplus’ and refers to the amount of surplus DAI the system will accrue before triggering FLAP auctions to burn MKR.

Community Discussion on this change can be found here.

Summary

Therefore, if this Executive proposal passes the following will occur:

  • The Base Rate meta-parameter will be reduced from -4% to -6%.
  • The USDC-B Stability Fee parameter will be reduced from 46% to 44%.
  • The MANA-A Stability Fee parameter will be reduced from 8% to 6%.
  • The dust parameter for each vault type will be increased from 20 DAI to 100 DAI.
  • The BAT-A Risk Premium will be increased from 0% to 4%.
  • The Surplus Auction Buffer will be increased from 500K DAI to 2M DAI.

Note that the increase to the BAT-A Risk Premium has no effect on the BAT-A stability fee at this time due to the negative base rate.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on this topic can be found on the MakerDAO governance forum. Please review the linked discussion threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Modify Multiple System Parameters appeared first on Maker Blog.

Who Uses the Maker Protocol and Dai, and Why?

https://blog.makerdao.com/who-uses-the-maker-protocol-and-dai-and-why/

Dai and the Maker Protocol stand at the forefront of the decentralized finance (DeFi) movement—a direct result of the many advantages that crypto and blockchain technologies bring to the financial services sector.

The Protocol provides a robust set of financial tools, while Dai, the most popular decentralized stablecoin, unlocks the value inherent in those tools. Together, the Protocol and Dai fuel a large and growing ecosystem of DeFi projects that benefits users in numerous ways.

The Attraction of the Maker Protocol and Dai

The Maker Protocol is the open-source platform through which anyone, anywhere can generate the Dai stablecoin against crypto collateral assets. Moreover, anyone can also build on top of the Protocol, thanks to its composability.  

Unlike other popular stablecoins, Dai is user-generated, meaning only Maker Vault users can create it (no third party issues or administers Dai. It’s also decentralized, meaning users always have complete independent control over their Dai. Finally, because it’s open-source, developers can integrate Dai into their projects. As such, Dai offers advantages that fiat currencies can’t:

  • Fast, low-cost transactions
  • Borderless transfers
  • Transparency
  • Immutability and auditability
Anyone can open a Maker Vault to generate the Dai stablecoin.

Who Uses Dai?

People inside and outside the crypto sphere generate and/or buy Dai, and then use it or hold it for reasons ranging from curiosity to practicality.

Dai generators use Oasis.app to deposit crypto collateral into a Maker Vault to create Dai. Every Dai in existence was generated in this way. People generate Dai to pay for goods and services in a stable currency without having to sell their underlying collateral asset (ETH, wBTC, etc.).

Not all Dai users generate the stablecoin themselves. Some purchase Dai from an exchange or receive it from friends or relatives. With Dai in their wallets, people use it in different ways, including:  

Anyone who uses the Maker Protocol can generate the Dai stablecoin.
A few dapps made by the community in the Maker ecosystem.

Dai also appeals to crypto enthusiasts, who like to keep track of the latest developments in the DeFi space and engage with the technologies they believe might become the solutions for what ails the global economy.

Similarly, crypto-curious individuals experiment with Dai on the recommendation of friends or family, or start their Dai journeys by following the news of major corporations and central banks interested in launching their own stablecoins.

Enterprises are also increasingly exploring Dai in various ways. At one end of the spectrum, exchanges play important roles in the DeFi ecosystem by listing the token and providing liquidity via their communities of traders. At the other end are small- and medium-sized businesses that use Dai for everyday payments. In the middle, fintech companies act as bridges between consumers and the blockchain by providing debit card integrations. Dai-enabled debit cards, for example, allow users to spend Dai frictionlessly anywhere Mastercard or Visa are accepted.

Game developers use the Maker Protocol and Dai to provide game players with new opportunities.
More and more game developers are recognizing the benefits of integrating Dai. 

Finally, developers are very special business users. Dai’s network effect and popularity make it the ideal choice for integration with the most essential DeFi projects. Users of particular note are:

One Protocol, One Dai Stablecoin, Many Reasons to Engage

The Maker Protocol and the Dai stablecoin bring the fundamental benefits of transparency, security, and efficiency to users. Every day, people all over the world derive value from generating Dai and, in doing so, provide value to the Maker ecosystem. The number of people that use Dai will only grow in the coming years, as more and more individuals, businesses, developers, and other parties grasp the advantages of decentralized crypto assets. 

Visit the Maker Ecosystem page to discover the many dapps made by the Maker community.

The post Who Uses the Maker Protocol and Dai, and Why? appeared first on Maker Blog.

Governance Poll: Liquidations 1.2 Upgrade, Base Rate adjustment, and more

https://blog.makerdao.com/governance-poll-august-10-2020/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents polls to implement the Liquidations 1.2 Upgradeappoint MyCrypto as an Oracle Light Feed, adjust the Dust Parameter, LRC Onboarding, Base Rate adjustments, and more.

Poll: Liquidations 1.2 Upgrade

The Governance Facilitators have placed a governance poll into the voting system on behalf of the Risk and Smart Contracts domain teams which gives Maker Governance the chance to signal their support for the Liquidations 1.2 Upgrade.

This weekly Governance Poll (FAQ) will be active for 3 days beginning on Monday, August 10 at 16:00 UTC.

Review

The Liquidations 1.2 Upgrade discussion and timeline is taking place on the official forum. The initial post can be found here. Please review this thread to inform your position before voting.

Next Steps

The governance poll timeline for this issue can be found in this thread.

If this poll ends with a ‘Yes’ majority, then the Liquidations 1.2 Upgrade will be included in the Executive Vote on Friday, August 14, 2020.

Appoint MyCrypto as Oracle Light Feed (MIP10c15-SP6)

On August 10, 2020 the Maker Community will vote to determine whether the Maker Improvement Subproposal MIP10c15-SP6 will proceed to a final Executive Vote. In short, MIP10c15-SP6 appoints MyCrypto as an Oracle Light Feed who submits price data to the MakerDAO Oracles.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

The proposal to appoint MyCrypto as an Oracle Light Feed can be reviewed here: MIP10c15-SP6: Subproposal to Appoint MyCrypto as Oracle Light Feed.

Next Steps

If the Governance Poll passes, the Oracle Team will assist MyCrypto to setup and configure their Oracle Light Feed. Then the proposal will proceed to a final ratification vote (Executive Vote).

Poll: Adjust the Dust Parameter

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition to increasing the Dust Parameter from 20 DAI to 100 DAI for all vault types.

This Governance Poll (FAQ) will be active for three days beginning on Monday, August 10 at 16:00 UTC, the results of which may inform an Executive Vote (FAQ) which will go live on Friday, August 14, at 16:00 UTC.

Review

Additional context was presented in a Signal Request on July 29, 2020. Please review the discussion there to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on Friday, August 14, 2020.

If this poll ends with a ‘No’ majority, then no further action will be taken.

Loopring (LRC) Collateral Onboarding (MIP12c2-SP4)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP12c2-SP4: LRC Collateral Onboarding) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3558. It was also mentioned and possibly discussed on the Governance Call on August 6, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on August 13, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Subproposal for Core Personnel Offboarding (MIP0c13-SP1)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP0c13-SP1: Subproposal for Core Personnel Offboarding) should be included in the Monthly Governance Poll. This proposal is a formality which confirms the voluntary offboarding of Richard Brown from the core role of Governance Facilitator.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3508. It was also mentioned and possibly discussed on the Governance Call on August 6, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on August 13, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Poll: Increase the Surplus Auction Buffer to 2 Million Dai

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition to increasing the Surplus Auction Buffer, also referred to as the ‘System Surplus’, from 500,000 DAI to 2,000,000 DAI. More information on this parameter can be found here.

This Governance Poll (FAQ) will be active for three days beginning on Monday, August 10 at 16:00 UTC, the results of which may inform an Executive Vote (FAQ) which will go live on Friday, August 14, at 16:00 UTC.

Review

Additional context was presented in a Signal Request on July 23, 2020. Please review the discussion there to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on Friday, August 14, 2020.

If this poll ends with a ‘No’ majority, then no further action will be taken.

Declaration of Intent – Forward Guidance (MIP13c3-SP1)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal(MIP13c3-SP1: Declaration of Intent: (Forward Guidance)) should be included in the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3130. It was also mentioned and possibly discussed on the Governance Call on August 6, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm the inclusion of this proposal within the next Monthly Governance Poll on the Thursday Governance and Risk call on August 13, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Poll: Base Rate Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents several possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -8% to 0%.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, August 10 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, August 14 at 16:00 UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Poll: Adjust the BAT Risk Premium 

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Governance Community. The community can use this poll to express support or opposition to increasing the BAT-A Risk Premium from 0% to 4%.

This Governance Poll (FAQ) will be active for three days beginning on Monday, August 10 at 16:00 UTC, the results of which may inform an Executive Vote (FAQ) which will go live on Friday, August 14, at 16:00 UTC.

Review

Additional context was presented in a Signal Request on July 24, 2020. Please review the discussion there to inform your position before voting.

Next Steps

If this poll ends with a ‘Yes’ majority, this change will be included in the Executive Vote on Friday, August 14, 2020.

If this poll ends with a ‘No’ majority, then no further action will be taken.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Poll: Liquidations 1.2 Upgrade, Base Rate adjustment, and more appeared first on Maker Blog.

Executive Vote: Urgent configuration change to the ETH lump size, Increase the WBTC-A debt ceiling

https://blog.makerdao.com/executive-vote-august-7-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Urgent Configuration change to the ETH lump size

The MakerDAO Smart Contracts Domain Team have discovered a risk present in the Maker Protocol that needs to be addressed as a matter of urgency. In order to mitigate this risk the Smart Contracts Team suggest that the ETH lump parameter should be reduced from 500 ETH to 100 ETH. Further details of this issue can be reviewed here.

The lump parameter is also known as the ‘Auction Lot Size’ and determines the size of the auction lots when liquidating collateral in the Maker Protocol.

Increase the WBTC-A debt ceiling

As per the community signal request located here, this proposal asks whether the WBTC-A Debt Ceiling should be increased from 40 million to 80 million. This proposal has successfully met the requirements to be expedited as an emergency action based on the community response within that signal request.

This expedited action is being taken in response to DAI consistently trading above peg for the past few months.

Summary

Therefore, if this Executive proposal passes the following will occur:

  • The WBTC-A Debt Ceiling will increase from 40 million to 80 million.
  • The ETH lump parameter will decrease from 500 ETH to 100 ETH.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on this topic can be found here and here. Please review this thread to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Urgent configuration change to the ETH lump size, Increase the WBTC-A debt ceiling appeared first on Maker Blog.

Maker Governance Review: July 2020

https://blog.makerdao.com/maker-governance-review-july-2020/

The Maker Governance Review is a monthly recap of all Governance activity, from  Governance blog posts and polling/voting history to Governance Cycle progress. Each review is written by the Maker Improvement Proposals (MIPs) Editor to keep the Maker community informed of Governance developments.

Top Governance News

MANA Approved by Maker Governance as Collateral Type in the Maker Protocol

MKR holders have accepted MANA (Decentraland) as a new collateral asset in the Maker Protocol. Anyone can now connect a wallet to Oasis Borrow to lock the token in a Maker Vault to generate Dai.

July’s Governance Polls and Executive Votes 

Governance Cycle Updates

Key Outcomes of the Third Governance Cycle

The third Governance Cycle, which began July 6 and ended on July 31, included significant milestones for the Maker community and MakerDAO.

Five proposals, each described below, entered the Governance Cycle this month and were ratified on July 28: 

Maker Improvement Proposals (MIPs)

  1. MIP16: The Weekly Governance Cycle
    1. This proposal formalizes a Weekly Governance Cycle for the Maker Governance system. The Weekly Governance Cycle provides a predictable framework for Maker Governance decisions to be made on a weekly basis.
  2. MIP18: Meta-Parameter Adjustments
    1. This proposal outlines and formalizes the concept of Meta-Parameters in the Maker Protocol. In short, Meta-Parameters are parameters that do not correspond directly to parameters within the Maker Protocol’s smart contracts. MIP18 also contains a list of the current Meta-parameters used in Maker Governance. 
  3. MIP19: Liquidations System 1.1 Upgrade
    1. This proposal upgrades the Maker Protocol’s auction contracts to avoid “double liquidity” (the need for extra funds when a bidder modifies a bid as well as to fix the “stuck debt auctions” bug.

Subproposals

  1. MIP18c4-SP1: Subproposal for Modifying Meta-Parameter Adjustments
    1. This proposal removes the Dai Savings Rate (DSR) spread as a Meta-Parameter to reduce the Weekly Governance Cycle’s complexity. In short, the DSR spread is a Governance Meta-Parameter that sets the DSR via the Base Rate.
  2. MIP12c2-SP3: Domain Work Requirements for the Onboarding of MANA
    1. This proposal defines the work requirements for onboarding the MANA collateral type to the Protocol, explicitly highlighting the domain teams’ objectives and work requirements. The ratification of this proposal means that MKR holders accepted MANA (Decentraland) as a new collateral asset in the Maker Protocol. Now anyone can connect a wallet to Oasis Borrow to lock the token in a Maker Vault to generate Dai.

With the passing of these proposals, MakerDAO now officially has a Risk Domain Team, an updated Collateral Onboarding framework, and a new system to enable Maker Governance to signal an intention to the wider community.

The weekly and monthly Governance Cycle processes, at a glance.

MIPs In Progress

Five other proposals, outlined below, are currently in the Request for Comments (RFC) phase. This means it is now time for the Maker community to provide feedback on each or request changes from the Proposal Authors. 

  1. MIP20: Target Price Adjustment Module-(Vox)
    1. This proposal defines a process for adjusting Dai’s target price according to a Governance-defined rate, allowing the institution of “negative effective interest rates,” described therein.
  2. MIP17: Weekly Actual Debt Ceiling and Actual Risk Premium Adjustments
    1. This proposal defines a process and solution for enabling weekly Debt Ceiling and utilization-based Actual Risk Premium adjustments.
    2. This proposal is currently being modified based on community feedback to only propose a solution for Debt Ceiling Adjustments. A summary of the reasoning can be found here.  
  3. MIP15: Dark Spell Mechanism
    1. This proposal suggests a process for applying critical bug fixes to the Maker Protocol.
  4. MIP14: Protocol Dai Transfer
    1. This proposal defines a generic process for transferring Dai from the Maker Protocol to a target ethereum address.
      1. The Author of this proposal is looking for a new author from the community to champion this proposal going forward. 
  5. MIP13c3-SP1: Declaration of Intent (Forward Guidance)
    1. This proposal aims to help Vault users hedge their exposure to the base rate via various derivative contracts.

Collateral Onboarding Community Greenlight Polls 

Community Greenlight Polls are Governance polls that are specific to gauging community sentiment for collateral onboarding. Specifically, Greenlight Polls allow MKR token holders to inform the Domain Teams (Risk, Smart Contracts, and Oracles) of their preferences for collateral types that have been proposed through Collateral Onboarding Applications. These polls run for a period of two weeks starting the third week of the Governance Cycle. 

While Domain Teams are free to choose their own workload, an on-chain Governance poll provides them with key insights into the community’s sentiment for each collateral type proposed. In addition to this, it is important to gather the opinions of MKR token holders before the full domain work takes place, as a matter of efficiency.

July’s Collateral Onboarding Community Polls ended on August 3, with the following results: 

What’s Ahead?

The fourth Governance Cycle began on August 3, signaling the start of the Formal Submission period for new MIPs, Subproposals, and Collateral Applications. The formal submission period ended on August 5. Proposals will be approved or denied by Governance Facilitators on the weekly (Thursday) Governance call. If approved, proposals will enter the Governance Cycle in week two of the August Cycle through Inclusion polls on August 10. 

Be sure to keep an eye out for the Weekly MIPs Update, typically posted in the Maker Forum on Sundays or Mondays. The update summarizes the most recent events in the world of MIPs, the previous week’s activity, what to expect from the current week, and what’s on the agenda for the next week. It also covers updates with respect to Governance polls and votes, collateral onboarding, and rate adjustments.

Resources

To stay current on Governance, risk, and community issues, bookmark the MakerDAO Public Events Calendar. Newcomers to Maker might want to review our series of posts on the MakerDAO Governance Risk Framework.

Also, remember to review the Maker Improvement Proposals category in the Maker Forum and visit the #mips rocket.chat channel to discuss topics related to MIPs, the Self-Sustaining MakerDAO Initiative, and long-run Governance. 

To learn more about the Governance activities that occur during the Monthly Governance Cycle, see MIP3 for a week-by-week breakdown. 

For the most current MIP-related activity, see the official MIPs Github page.

About Maker Improvement Proposals

MIPs support the organic growth that further expands MakerDAO’s self-sustainability by providing the Maker community and all stakeholders with a standard approach to proposing improvements, specifications, and process and state changes to the Maker Protocol and MakerDAO. 

The post Maker Governance Review: July 2020 appeared first on Maker Blog.

The Top 10 Crypto and DeFi Influencers on Twitter

https://blog.makerdao.com/the-top-10-crypto-and-defi-influencers-on-twitter/

Cryptocurrency technology has captured the attention of people worldwide, and Twitter has become a place where many respected crypto enthusiasts and experts gather. The most popular share their thoughts about the current and future state of crypto and decentralized finance (DeFi). 

The top 10 crypto and DeFi influencers on Twitter chosen for this list,* which is presented in no particular order, don’t all have a lot of followers or deep industry clout. But each provides insightful content and inspires valuable discussions about the DeFi movement. 

1. Vitalik Buterin (@VitalikButerin), 929.4K followers

Co-creator of Ethereum and co-founder of Bitcoin Magazine

Vitalik Buterin, the creator of Ethereum (and a large supporter of Maker’s decentralized stablecoin Dai) is an extremely influential thought leader. He’s said that DeFi has the potential to disrupt the existing financial sectors, and that it has been proving itself step-by-step with its huge user growth and various use cases. However, while he’s long asserted that the DeFi movement is extremely attractive, he is concerned about the high interest rates and tension around additional leverage opportunities offered by some DeFi platforms.

Vitalik Buterin, the creator of Ethereum, is a top influencer on Twitter.

2. Brian Armstrong (@brian_armstrong), 341.2K followers

CEO and co-founder of Coinbase

Brian Armstrong’s easy-to-use, centralized crypto exchange, Coinbase, boasts over 30 million users, including merchants that accept crypto via Coinbase Commerce. The popular exchange integrates Dai, which, as a stablecoin, helps mitigate volatility for users. Meanwhile, DeFi apps are increasingly integrating Coinbase Wallet to allow easy access to their projects and further user adoption. Armstrong’s fans respect the rapid growth of his company and his offerings. He recently alerted his Twitter followers to the Coinbase Price Oracle, which, he says, will provide a beneficial service to the overall DeFi ecosystem:

Influencer Brian Armstrong’s Twitter fans respect the rapid growth of his crypto exchange

3. Andreas Antonopoulos (@aantonop), 509.9K followers,

Author, Bitcoin advocate, and tech entrepreneur

Andreas Antonopoulos is a best-selling author and speaker, who is well versed in Bitcoin and blockchain technologies. He is known for his clear and compelling explanations on those subjects and his valuable insights about the future of cryptocurrencies.

While he’s created a lot of educational content about Bitcoin (BTC), he’s also posted meaningful content regarding Ethereum, the blockchain on which most DeFi dapps (decentralized applications) are built. In a 2019 segment of his popular Ethereum Q&A series, he provided an easy-to-understand intro to how the Maker Protocol and Dai, the most used cryptocurrency in the DeFi space, work. Shared via Twitter last year, the video refers to CDPs, the first iteration of Maker Vaults.  

Andreas Antonopoulos is a top author and speaker, as well as a crypto influencer on Twitter

More recently, in an interview with Cointelegraph, Antonopoulos focused on the beneficial effect DeFi has had on the BTC network, stressing that DeFi can be used cautiously as a method for earning BTC passive income.  

4. Cameron Winklevoss (@winklevoss), 189.5K followers

Co-founder of Gemini and early Bitcoin adopter

Cameron Winklevoss, along with his twin brother Tyler, co-founded Gemini, a US-based crypto exchange. The brothers are famous for their early investment in Bitcoin, which made them the first crypto billionaires in the world.

In an interview with Camila Russo for The Defiant in May, not long after Dai was added to Gemini, Cameron shared some thoughts about DeFi. “I think DeFi is a new vista, a new type of system for which Bitcoin paved the way,” he began. “It was sort of the blueprint for decentralization. Like, this is what’s possible. You can take something that’s centralized and make it decentral. Bitcoin was the starting point.”

Cameron Winklevoss is a Twitter influencer and co-founder of Gemini, a US-based crypto exchange.

5. Tyler Winklevoss (@tylerwinklevoss), 226.2K followers

Co-founder and CEO of Gemini

Tyler Winklevoss, CEO of the company he founded with his brother, is excited by the promise of DeFi for the next generation.

Influencer Tyler Winklevoss, CEO of the Gemini exchange, uses Twitter to support crypto and DeFi.

As reported by Cointelegraph, he told the Defiant that the importance of stablecoins won’t be truly evident until Wall Street invests DeFi, and that fiat-backed stablecoins don’t offer a long-term solution for traditional finance. He said that Gemini plans to increase support for crypto assets “that power the DeFi revolution,” and added that the company will look to offer both trading and custody services. 

6. Laura Shin (@laurashin), 117.8K Followers

Podcast host and producer 

Writer Laura Shin shares content via Twitter and her popular podcasts, Unchained and Unconfirmed. Once a senior crypto/blockchain editor for Forbes, she’s now on her own, continuing to cover a wide range of DeFi topics, including stablecoins and security. Her interviews of representatives of market-leading DeFi protocols, such as Maker, Uniswap, and Compound, are especially appealing. 

Laura Shin is a top Twitter influencer, who covers a wide range of crypto and DeFi topics.

7. Linda Xie (@ljxie), 62.6K Followers

Co-founder of ScalarCapital

Linda Xie, who along with Jordan Clifford founded cryptocurrency venture capital firm Scalar Capital, earned a spot on Forbes’ 30 under 30 list (finance) in 2019. Her Twitter strength lies in her powers of aggregation. She’s a bulletin board of useful info for DeFi fans.

Linda Xie is not only a Twitter influencer, but also a talented aggregator for crypto and DeFi fans.

8. Chris Burniske (@cburniske), 123.4K Followers

Partner at Placeholder 

Chris Burniske is a partner at Placeholder, a New York-based crypto venture firm. He’s often quoted in the financial sections of newspapers and magazines, has appeared on national media outlets to discuss crypto markets, and pens insightful posts for the Placeholder blog from time to time. In 2017, he wrote Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond, a book he co-authored with Jack Tatar.

Burniske is a strong advocate of DeFi, believing it will unleash Ethereum’s ability to positively impact all types of financial services.  

Chris Burniske is a strong crypto influencer on Twitter, and an advocate of Ethereum and DeFi.

9. Ryan Sean Adams (@RyanSAdams), 25.9K Followers

Founder of Mythos Capital; creator of Bankless

While Ryan Sean Adams has fewer followers than the other influencers on this list, he is one of the most active DeFi experts on Twitter. He also writes Bankless, his subscription-based blog and “ultimate guide to crypto finance,” in which he often interviews DeFi influencers at the center of the movement.

Ryan Sean Adams has fewer followers than other crypto influencers, but he is a DeFi expert on Twitter.

10. Camila Russo (@CamiRusso), 26.3K Followers

Founder of DefiantNews 

Camila Russo is a well-known crypto writer, who focuses her popular newsletter The Defiant on all things DeFi. She has written about finance for Bloomberg News in New York, Madrid, and Buenos Aires, and is currently celebrating the publication of her first book, The Infinite Machine: How an Army of Crypto-hackers Is Building the Next Internet with Ethereum. She’s thoughtful, engaging, and always has her fingers on the pulse of the DeFi market.

Camila Russo is a top crypto writer and a strong influencer on Twitter.

Continue the Conversation with the Maker Foundation on Twitter

As the Foundation continues to bootstrap MakerDAO toward becoming a fully decentralized organization governed by the Maker community, you can learn even more about DeFi by following these Maker Foundation influencers:

  • Rune Christensen, CEO, @RuneKek
  • Steven Becker, President and COO, @altsdbecker
  • Mariano Conti, Head of Smart Contracts, @nanexcool
  • Greg Diprisco, Head of Business Development, @g_dip
  • Cyrus Younessi, Head of Risk, @cyounessi1
  • Wouter Kampmann, Head of Engineering, @wkampmann
  • Soren Peter Nielsen, Head of Product, @sorenp
  • Doo Wan Nam, Business Development Associate, Asia Pacific, @DooWanNam
  • Mariano Di Pietrantonio, Marketing Manager, Latin America, @Mariandipietra
  • Maria Magenes, Community Lead, Europe, @mariamagenes1
  • Lenka Hudakova, Events Manager, @LenklaH
  • Coulter Mulligan, Head of Marketing, @CoulterM
  • David Utrobin, Core Community Lead, @Davidutro

*The views and opinions expressed by the crypto influencers and Maker Foundation employees referenced above do not purport to reflect the views or opinions of the Maker Foundation or its affiliates.

The post The Top 10 Crypto and DeFi Influencers on Twitter appeared first on Maker Blog.

Making Maker: July 2020

https://blog.makerdao.com/making-maker-july-2020/

In July, MKR holders accepted Decentraland’s MANA as a new collateral asset into the Maker Protocol, and several votes on asset debt ceiling increases were held. Details are in the Governance section below.  

As the Maker voting community continues its efforts to bring financial stability and transparency to the world economy, the DeFi and Dai milestone hits just keep on comin’! On July 17, total Dai reached the 200M mark:


Daistats.com celebrates the 200M Dai milestone with confetti.

Eleven days later, total Dai hit 300M, and then, on July 26, Maker became the first DeFi project to reach $1B total value locked in DeFi.   

Image courtesy of DeFiPulse.com.

In response to Maker community conversations surrounding the Dai peg over the last few months, Maker Foundation CEO Rune Christensen penned a Forum post on July 22, regarding the much discussed Peg Stabilization Module.  

There’s much more to recap, but first, let’s look at the numbers from daistats.com as of July 31, 2020, 9 am  PT. 

Total Dai: 365,198,062.84 

Dai from ETH: 267,458,006.93 (73.24%)

Dai from BAT: 2,372,311.91  (0.65%)

Dai from USDC-A: 53,927,869.07  (14.77%)

Dai from WBTC: 39,999,932.59 (10.95%)

Dai from USDC B: 4,884.47 (0%)

Dai from TUSD: 0 (0%)

Dai from KNC: 130,078.63 (0.04%)

Dai from ZRX:  27,810.24 (0.01%)

Dai from MANA: 78,183.87 (0.02%)

ETH Stability Fee: 0.0%

BAT Stability Fee: 0.0%

USDC-A Stability Fee: 4.00%

WBTC Stability Fee: 2.0%

USDC-B Stability Fee:  50.00%

TUSD Stability Fee: 0.0%

KNC Stability Fee: 4.00%

ZRX Stability Fee: 4.00%

MANA Stability Fee: 12.00%

Dai Savings Rate: 0%

Dai in DSR: 178,525,921.03 (48.88%)

Vaults Opened: 12,304

Blog Round-up

Why Online Merchants Should Accept Dai For Crypto Payments

Dai is the ideal crypto solution for e-commerce. The stablecoin offers the benefits of crypto (speed and transparency) and fiat currency (reliable price) while avoiding the risk and costs of traditional internet payments (chargebacks and high transaction fees). 

MakerDAO Approves 4 New Light Feeds For Oracles

To increase the security of the Protocol as MakerDAO moves toward complete decentralization, Maker Governance recently reviewed and added four “Light” Feeds to the existing Oracle group.

Four organizations providing new Light Feeds as part of the Maker Oracle Feeds.

Welcome to the Evolution: How DeFi is Augmenting the Global Financial System

DeFi is changing the financial services world, from the composable infrastructure of its applications to its functionality and consumer benefits, but it’s doing so through augmentation, not revolution or replacement.

Maker Foundation Offers a 25,000 Dai Prize to Winner(s) of Reddit/Ethereum Scaling Competition

The Reddit/Ethereum Scaling Competition presents a huge opportunity to spur mainstream crypto adoption. Dai will scale massively in the coming years with the help of the strong and growing MakerDAO community. So, helping to power the growth of Ethereum by rewarding the winner(s) is a critical part of making that happen. There’s still time to submit applications!

Worth Repeating

You’ve Learned How to Open a Maker Vault––Now What?

The Maker Foundation’s latest video, How to Open a Maker Vault, demonstrates how easy it is to generate the Dai stablecoin. Watch:

How Dai Became A Favorite Crypto in Latin America

For Latin Americans, the true safe-haven currency is the US Dollar. It’s not always easy to buy, though, which is where MakerDAO’s Dai stablecoin comes in. Dai, built on the Ethereum network and underpinned by a system of smart contracts and decentralized price feeds, is designed to maintain a soft-peg to the US dollar.

Developer Resources

Maker Protocol Technical Documentation

Everything—everything— you need to know about the upgraded Maker Protocol now exists in (highly technical) documentation. Get your geek on!

Developer Guides

MakerDAO’s Developer Guides help anyone integrate with Maker’s smart contracts, SDKs, APIs, products, and partners. Bookmark the guides and review them anytime.

Governance Updates

MANA Approved by Maker Governance as Collateral Type in the Maker Protocol

MKR holders have accepted MANA (Decentraland) as a new collateral asset in the Maker Protocol. Anyone can now connect a wallet to Oasis Borrow to lock the token in a Maker Vault to generate Dai.

Miss This? Maker Governance Review: June 2020

July’s Governance Polls and Executive Votes 

To stay current on governance, risk, and community issues, bookmark the MakerDAO Public Events Calendar. Newcomers to Maker might want to review our series of posts on the MakerDAO Governance Risk Framework.

Rune Radio 

On July 14, Rune participated in Binance’s Off the Charts!, a virtual conference, celebrating the exchange’s third birthday. He took part in a panel discussion titled “Rise of Decentralization: Today’s Cutting-Edge Web3 and DeFi Solutions.” Watch the discussion below (starting at 1:09 ):

July 29 saw MakerDAO’s founder take part in CoinDesk Live’s celebration of Ethereum’s fifth birthday, ETH at Five. In an online panel titled Ethereum’s Bankless Bankers,” Rune discussed the rise of the DeFi movement with sector leaders Compound’s Robert Leshner and Uniswap’s Hayden Adams. Read the recap at the link above or watch the entire panel.

Rune joins Compound and Uniswap founders to discuss the past, present, and future of decentralized finance.

The Latest Integrations

Dai has been integrated into the Spells of Genesis blockchain-based mobile game. Learn how to win Dai by playing the game.

Dai is the exclusive stablecoin of Polyient Games’ NFT (PGFK) sale, which will be held September 15. Polyient is an investment firm focused on non-fungible tokens (NFTs) and blockchain gaming.

MEET.ONE wallet is now integrated with Oasis.app.

The D’CENT Biometric wallet, which allows users to authenticate transactions with a fingerprint, also now includes Oasis.

Users of Request Invoicing can now create their invoices denominated in USD, Euros, or GBP, and get paid directly in Dai.  

Community Highlights and Event Recaps

A MakerDAO working group has embarked on an awesome new NFT badges project funded by a Maker microgrant. NFTs will be redeemable by completing key actions involving Dai and the Maker Protocol, from accruing a certain amount of Dai from DSR to winning auctions.  

The Tiger NFT, created by artist Richard Rosa will be redeemable by Keepers that “bite” large Vaults (trigger liquidations).

On July 1, Chao Pan, the Maker Foundation’s Community Lead for China, joined representatives from Dragonfly Capital, Multicoin Capital, and dForce in the first installment of The Block’s four-part webinar, The Exchange. Chao shared the success of Dai adoption in China and his views on the latest trends in DeFi.

On July 2, the Maker Foundation’s Community Lead for APAC Jocelyn Chang discussed the meaning and significance of DeFi with representatives from Synthetix and InstaDApp at LongHash Venture’s digital event titled Through the DeFi Looking Glass.  

Maker’s Jocelyn Chang and others in the defi space take part in a panel discussion titled Through the DeFi Looking Glass.  

Also on July 2, Gustav Arentoft, the Maker Foundation’s Business Development Associate in Europe, took part in a Blockchain Game Alliance-hosted fireside chat titled DeFi x Gaming. He and Aleksander Larsen from Axie Infinity discussed MakerDAO’s significance for the gaming space, and how Dai and the Maker Protocol are being used.  

Gustav Arentoft and Aleksander Larsen chat about the intersection of gaming and DeFi.

On July 3, Jocelyn Chang joined Maria Magenes, the Maker Foundation’s Community Lead for Europe, as co-host of the second FriDAI Brunch, titled The Potential of DeFi in India and Malaysia. The panel discussion featured Nuo’s Sai Teja and Harith Kamarul of Etherscan. Be sure to follow Maria on Twitter for updates on her FriDAI Brunches. 

Maker’s Maria Magenes and Jocelyn Change discuss DeFi with Sai Teja and Harith Kamarul.

On July 4, Chao Pan participated in an online panel discussion during the 2020 China-Singapore Blockchain Leaders Summit. The talk, titled Technological Challenges and Risks of Large-scale DeFi Applications, was jointly organized by the Singapore University of Social Sciences (SUSS), Wanxiang Blockchain Labs, and 8btc.com. Chao discussed connecting DeFi with real-world assets at scale.   

On July 13, Greg Diprisco, the Maker Foundation’s Head of Business Development, discussed the growth of the Maker Protocol and ecosystem with digital asset broker Voyager. Read Greg’s insights on Voyager’s blog, Node.

On July 14, Maker Foundation President and COO Steven Becker took part in LendIt Fintech’s webinar, Breaking Down the DeFi Buzz: How DeFi Will Reshape Global Finance, alongside Lex Sokolin (Head of Fintech at ConsenSys) and Lucas Vogelsang (Founder of Centrifuge). The group explored how a decentralized approach to finance can combat some of the biggest problems of traditional finance.

Also on July 14, Maria Magenes contributed to a panel discussion about DeFi at Blockchain Days, a virtual conference organized by Blockchain Education Network Italy and centered on the application of blockchain in different industries. 

On July 16, Doo Wan Nam, the Maker Foundation’s Business Development Associate in the APAC region, moderated a virtual panel discussion titled Blockchain And Digital Assets: An Investors Perspective. The talk was part of the Asia World Blockchain Summit, an annual conference that brings together government authorities, institutional investors, family offices, hedge funds, asset allocators, crypto entrepreneurs, and other leaders from the blockchain and fintech spaces.  

Also on July 16, the Maker Foundation co-hosted the third DeFi Africa virtual meetup. This theme this year was “Privacy in Decentralized Finance.” Maker’s Ambassador to Africa, Sahabia, moderated a panel discussion between Andrey Bugaevski, Project Lead at Incognito; Reuben Yap, Project Steward at Zcoin; and Diego Salazar, Community Lead at Monero.  

On July 18, Greg Diprisco participated in OKExDeFi’s second roundtable. He and OKEx CEO Jay Hao discussed how DeFi and CeFi can work together. Watch the video:

On July 24, Greg spoke at the 2020 Onchain Fintech Conference in Seoul, South Korea. He introduced representatives from traditional financial companies and banks to Maker, explaining how traditional financial systems can benefit from integrating on-chain technologies, such as DeFi and the Dai stablecoin. Read Doo’s Twitter thread of the event.

Greg Diprisco shared Maker’s contributions to the global economy with fintech execs in South Korea.

On July 26, Greg participated in Pundi’s XPOS® Distributor and Merchant Workshop 2020, giving a presentation titled Why Merchants Should Choose the Dai Stablecoin

Greg Diprisco explains the advantages of Dai for e-commerce merchants.

On July 28, Maker Foundation President and COO Steven Becker participated in Prophesying the Future of Oracles, a conversation hosted by the DApp Incubation Association (DIA). Steven joined other leaders from the DeFi space to discuss the current and future challenges and solutions of DeFi’s data infrastructure. 

Maker Foundation President and COO Steven Becker discusses DeFi’s data foundations with other DeFi leaders.

Also on July 29, Maker Foundation Associate Integrations Developer Petru Catana took part in Ironhack’s Intro to Blockchain, a virtual educational event for young coders. Petru explained how the Maker Protocol works, demonstrated some simple coding, and then explored the benefits of Dai using real use case examples.

Petru Catana shows young coders how the Maker Protocol works.

To stay current on Maker Community meetings, bookmark our Community Playlist on YouTube.

Upcoming Events

Aug. 3: Open World Builders guest lecture —DeFi (Virtual)

Aug. 5: DeFi Conference 2020 (Virtual)

Aug. 7: FriDAI Brunch #3—UX and Design as Key Tools to Foster DeFi (Virtual)

Sept. 15-16: Copenhagen Fintech Week 2020 (Virtual)

Sept. 22-24: Money 20/20 Europe 2020—Amsterdam, Netherlands

Dec. 9-10: Paris Blockchain Week Summit

To see more events we sponsor, participate in, or plan to attend, head to our Events page, and bookmark it!

Reminder: If you’re organizing a small event that incorporates Maker or Dai—whether it’s a meetup, panel, talk, or workshop—we want to support you! Learn more about our global meetups and micro-grants initiative

The Maker Foundation Is Hiring!

The Maker Foundation is looking for awesome people to join our growing, hard-working, and overall badass team. Check out our open roles and reach out if you’re interested!

In the meantime, stay home and stay healthy!

Learn more about MakerDAO:

Website: https://makerdao.com/

Blog: https://blog.makerdao.com

Reddit: https://www.reddit.com/r/MakerDAO/

Twitter: https://twitter.com/makerdao

The post Making Maker: July 2020 appeared first on Maker Blog.

Executive Vote: Reduce the Base Rate, Whitelist DyDx on the ETHUSD Oracle

https://blog.makerdao.com/executive-vote-july-31-2020/

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Reduce the Base Rate

As per the weekly Base Rate poll the Base Rate meta-parameter will be reduced from 0% to -4% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Whitelist DyDx on ETHUSD Oracle

As per the MIP10c9-SP5 poll that took place under the weekly cycle DyDx will be whitelisted on the ETHUSD Oracle if this proposal passes.

Summary

Therefore, if this Executive proposal passes the following will occur:

  • The Base Rate meta-parameter will be reduced from 0% to -4%.
  • The WBTC-A Stability Fee parameter will be reduced from 2% to 0%.
  • The KNC-A Stability Fee parameter will be reduced from 4% to 0%.
  • The ZRX-A Stability Fee parameter will be reduced from 4% to 0%.
  • The USDC-A Stability Fee parameter will be reduced from 4% to 0%.
  • The USDC-B Stability Fee parameter will be reduced from 50% to 46%.
  • The MANA-A Stability Fee parameter will be reduced from 12% to 8%.
  • DyDx will be whitelisted on the ETHUSD Oracle.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

These changes have been discussed over the last week on the Maker governance forum. Relevant threads can be found here and here. Please review these threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Reduce the Base Rate, Whitelist DyDx on the ETHUSD Oracle appeared first on Maker Blog.

Increase the ETH, USDC-A, USDC-B, W-BTC, BAT debt ceilings

https://blog.makerdao.com/executive-vote-july-29-2020/

The Interim Risk Team has placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Increase the ETH, USDC-A, USDC-B, W-BTC, BAT debt ceilings

The Risk Team has requested that the debt ceilings be raised as an emergency measure due to the recent pressure on the Dai peg.

The Risk Team has called for the following changes:

  • ETH debt ceiling to be increased from 260 to 340 million.
  • USDC-A debt ceiling to be increased from 80 to 140 million.
  • USDC-B debt ceiling to be increased from 10 to 30 million.
  • W-BTC debt ceiling to be increased from 20 to 40 million.
  • BAT debt ceiling to be increased from 3 to 5 million.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Please discuss the proposed changes in the Maker governance forum to inform your position before voting.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Increase the ETH, USDC-A, USDC-B, W-BTC, BAT debt ceilings appeared first on Maker Blog.

MANA Approved by Maker Governance as Collateral Type in the Maker Protocol

https://blog.makerdao.com/mana-approved-by-maker-governance-as-collateral-type-in-the-maker-protocol/

As a result of an Executive Vote that ended today, MKR holders have accepted MANA (Decentraland) as a new collateral asset in the Maker Protocol. The token can now be used to open Maker Vaults in order to generate Dai. 

Prior to the vote, the Maker community discussed the merits of adding MANA, as well as the appropriate risk parameters for the tokens (listed below), in the Maker Governance Forum.

MANA Risk Parameters

  • Risk Premium: 12%
  • Liquidation Ratio: 175%
  • Debt Ceiling: 1 million
  • Auction Lot Size: 500,000
  • Minimum Bid Increment: 3%
  • Bid Duration: 6 hours
  • Max Auction Duration: 6 hours
  • Liquidation Penalty: 13%
  • Dust: 20 Dai

The flexibility of the Maker Protocol means that almost any kind of asset that can be tokenized can be added as collateral in the system, as long as it has appropriate risk parameters and is approved by Maker Governance. 

Adding MANA to the list of collateral types is an exciting step. Users can now connect their wallets to Oasis Borrow and lock either type in a Maker Vault to generate Dai.

The post MANA Approved by Maker Governance as Collateral Type in the Maker Protocol appeared first on Maker Blog.

Executive Vote: Approve Monthly Governance Cycle Bundle, Increase the ETH Debt Ceiling

https://blog.makerdao.com/executive-vote-july-27-2020/

The Governance Facilitators have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Monthly Governance Cycle Bundle

As per MIP3: Governance Cycle, this bundle consists of the proposals that have met the prior requirements to be included in the monthly MIPs executive. These proposals are as follows:

Maker Improvement Proposals

Sub-Proposals

Increase the ETH-A Debt Ceiling

Additionally, the Risk Team has requested that the ETH-A debt ceiling be raised as an emergency measure due to the recent bullishness of ETH (Ether) with the aim of maintaining the Dai peg.

The Risk Team has called for the ETH-A debt ceiling to be increased from 220 to 260 million.

Summary

Therefore, if this Executive passes the following will occur:

  • Move MIP16: The Weekly Governance Cycle to Accepted status.
  • Move MIP18: Meta-Parameter Adjustments to Accepted status.
  • Move MIP19: Liquidations System 1.1 Upgrade to Accepted status
  • Implement changes to the Maker Protocol contracts as detailed in MIP19.
  • Move MIP18c4-SP1: Subproposal for Modifying Meta-Parameter Adjustments to Accepted status
  • Modify MIP18 according to the content of MIP18c4-SP1.
  • Move MIP12c2-SP3: Domain Work Requirements for the Onboarding of MANA to Accepted status.
  • Add MANA to the Maker Protocol with the risk parameters attached to MIP12c2-SP3.
  • Raise the ETH-A Debt Ceiling from 220 to 260 million.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

These changes have been discussed over the last month in the Maker governance forum, please review the threads linked above to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Approve Monthly Governance Cycle Bundle, Increase the ETH Debt Ceiling appeared first on Maker Blog.

Executive Vote: Lower the USDC-A Liquidation Ratio and Approve a New Gitcoin Light Feed Key

https://blog.makerdao.com/executive-vote-july-24-2020/

The Maker Foundation Governance Facilitator has placed an Executive Vote into the voting system, which will enable the community to lower the USDC-A Liquidation ratio and approve a new Gitcoin light feed key:

Lower the USDC-A Liquidation Ratio to 110%

  • This will lower the USDC-A Liquidation ratio from 120% to 110%. Note, there will be no changes to the USDC-A stability fee or debt ceiling. For more information please review this Signal Thread.

Approve a New Gitcoin Light Feed Key

  • This will enable Gitcoin to continue operating as a Maker light feed. This has been confirmed by signed message between Gitcoin and the Maker Oracle Team on the Maker Forum.

The Executive Vote (FAQ) will continue until the number of votes surpass the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

These changes were discussed in the most recent Governance call. Please review the VideoAudio, and the online discussion to inform your position before voting.

The MakerDAO community is moving forward with an Executive Vote to determine whether it will enact the changes established by the previous Governance Polls.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO.

Demos, help and instructional material for the Governance Dashboard can be found at Awesome MakerDAO.

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Lower the USDC-A Liquidation Ratio and Approve a New Gitcoin Light Feed Key appeared first on Maker Blog.

Executive Vote: Raise the ETH and USDC-A Debt Ceilings

https://blog.makerdao.com/executive-vote-july-20-2020/

The Maker Foundation Interim Governance Facilitator has placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol as outlined in this forum thread: [Signal Request] Should we raise the ETH-A and USDC-A debt ceilings.

Therefore, voting for this Executive will:

  • Raise ETH-A by 40m from 180m to 220m
  • Raise USDC-A by 40m from 40m to 80m

This will raise the global debt ceiling to 345m.

The Executive Vote (FAQ) will continue until the number of votes surpass the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

These changes were discussed in the most recent Governance call. Please review the VideoAudio, and the online discussion to inform your position before voting.

The MakerDAO community is moving forward with an Executive Vote to determine whether it will enact the changes established by the previous Governance Polls.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO.

Demos, help and instructional material for the Governance Dashboard can be found at Awesome MakerDAO.

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Executive Vote: Raise the ETH and USDC-A Debt Ceilings appeared first on Maker Blog.

Governance Polls: PSM Implementation, Appoint Argent as an Oracle Light Feed, and more

https://blog.makerdao.com/governance-polls-psm-implementation-appoint-argent-as-an-oracle-light-feed-and-more/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents polls to implement the Peg Stabilization Module, appoint Argent as an Oracle Light Feed, Base Rate adjustments, and community greenlight polls for collateral.

Poll: PSM Implementation Poll

The Governance Facilitators have placed a governance poll into the voting system which gives Maker Governance the chance to signal their support for the implementation of the Peg Stabilization Module (PSM) proposal in some form, with implementation aimed for the end of July.

This non-standard weekly Governance Poll (FAQ) will be active for 3 days beginning on Monday, July 20 at 16:00 UTC.

Review

The Peg Stabilization Module proposal discussion is taking place across a number of threads on the official forum. The initial proposal can be found here.

Further threads discussing the issue can be found under the pegstab-module tag on the forum.

Next Steps

The governance poll timeline for this issue can be found in this thread.

If this poll ends with a ‘Yes’ majority, further polls will take place on July 27, 2020 to determine the parameters for the PSM implementation.

If this poll ends with a ‘No’ majority, implementation of the PSM will need to either:
a) proceed under the MIPs process and the Monthly Governance Cycle
b) take place as an emergency action recommended by a Risk Domain team

Governance Poll to Appoint Argent as Oracle Light Feed (MIP10c15-SP5)

On July 20, 2020 the Maker Community will vote to determine whether the Maker Improvement Subproposal MIP10c15-SP5 will proceed to the final Executive Vote on July 31, 2020. In short, MIP10c15-SP5 appoints Argent as an Oracle Light Feed who submits price data to the MakerDAO Oracles.

Note: This subproposal has been submitted under the informal weekly cycle rather than the MIP3 Governance Cycle due to inconsistencies between MIP10 and MIP3 and to avoid delaying progress in the oracles domain until MIP10 can be amended.

Review

The proposal to appoint Argent as an Oracle Light Feed can be reviewed here: MIP10c15-SP5: Subproposal to Appoint Argent as Oracle Light Feed.

Next Steps

If the Governance Poll passes, the Oracle Team will assist Argent to setup and configure their Oracle Light Feed. Then the proposal will proceed to the final ratification vote (Executive Vote) on July 31, 2020.

Poll: Dai Savings Rate Spread Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents a number of possible Dai Savings Rate Spread options. Voters are now able to signal their support for a Dai Savings Rate Spread within a range of 0% to 4%.

Details on how the Dai Savings Rate Spread parameter was introduced, and its impact on the Dai Savings Rate parameter can be found in the following threads on the MakerDAO forum.

This biweekly Governance Poll (FAQ) will be active for three days beginning on Monday, July 20 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, July 24 at 16:00 UTC.

Review

The Dai Savings Rate Spread parameter is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Dai Savings Rate Spread parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Poll: Base Rate Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents a number of possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -4% to 4%.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday, July 20 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday, July 24 at 16:00 UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Base Rate parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

MIP3: Monthly Governance Poll

The Governance Facilitators have placed the MIP3: Monthly Governance Poll into the voting system. This poll asks whether the bundled contents of this month’s Governance Cycle should proceed to an Executive Vote to be held on July 27, 2020. The bundled contents of this poll consist of:

This Monthly Governance Poll (FAQ) will be active for 3 days beginning on Monday, July 20 at 16:00 UTC.

Review

The proposals can be reviewed in this week’s weekly MIPs update here. It was also discussed on the latest Governance and Risk call on July 16, 2020.

Next Steps

MKR holders must vote to determine whether to accept or reject the bundle of proposals included within the Monthly Governance Poll, determining whether the bundle should proceed to the final ratification vote (Executive Vote) in the last week of the monthly Governance Cycle. The Executive Vote will be submitted on July 27, 2020 if the Governance Facilitators confirm a ‘yes’ outcome of the Monthly Governance Poll on the next Governance and Risk call on July 23, 2020.

Poll: MIP9 Community Greenlight Poll – AMPL (Ampleforth Token)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset AMPL (Ampleforth Token) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding AMPL (Ampleforth Token) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – BNT (Bancor Network Token)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset BNT (Bancor Network Token) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding BNT (Bancor Network Token) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – C20 (Crypto20)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset C20 (Crypto20) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding C20 (Crypto20) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – COMP (Compound)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset COMP (Compound) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding COMP (Compound) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – EURS (Stasis Euro)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset EURS (Stasis Euro) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding EURS (Stasis Euro) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – HUSD

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset HUSD should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding HUSD as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – LRC (Loopring Token)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset LRC (Loopring Token) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding LRC (Loopring Token) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – PAX (Paxos Standard)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset PAX (Paxos Standard) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding PAX (Paxos Standard) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – USDT (Tether USD ERC20)

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset USDT (Tether USD ERC20) should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding USDT (Tether USD ERC20) as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – WiV

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset WiV should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding WiV as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Poll: MIP9 Community Greenlight Poll – renBTC 

Description

The Governance Facilitators have placed a governance poll into the voting system which asks whether the asset renBTC should be prioritized for inclusion in the Maker Protocol by the domain teams.

If greenlight votes exceed defer votes, this poll is to be taken as a signal to domain teams that MKR Token Holders have approved further domain work with the aim of adding renBTC as a collateral asset to the Maker Protocol.

Review

Please review the collateral onboarding application forum thread to inform your position before voting.

Next Steps

The domain teams will use the outcome of this poll to inform the direction of their collateral onboarding work.

Resources

MIP9: Community Greenlight describes this type of poll and goes into more detail about how it interacts with the rest of the collateral onboarding process.

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and setup your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Polls: PSM Implementation, Appoint Argent as an Oracle Light Feed, and more appeared first on Maker Blog.

Why Online Merchants Should Accept Dai For Crypto Payments

https://blog.makerdao.com/why-online-merchants-should-accept-dai-for-crypto-payments/

More and more merchants accept crypto payments today, thanks to the decentralized finance (DeFi) movement and the many benefits crypto provides to e-commerce retailers and customers alike. An estimated $4 billion in Bitcoin (BTC) alone was sent through payment processors in 2019.

But while DeFi offers greater security, efficiency, and control than the traditional financial system, there is a hurdle to accepting crypto payments: Most cryptocurrencies are volatile, so to avoid the possibility of received funds losing value, merchants must exchange payments for a stable currency quickly, and then pay the associated fees.

That inconvenience and cost can be avoided by accepting payments in MakerDAO’s Dai stablecoin, which is soft-pegged to the US Dollar. Dai offers the benefits of crypto (speed and transparency) and fiat currency (reliable price) while avoiding the risk and costs of traditional internet payments (chargebacks and high transaction fees). In other words, Dai is the ideal crypto solution for e-commerce. 

The Growing Trend of Accepting Crypto Payments For E-Commerce

Overall, e-commerce is growing rapidly. Forecasts from last summer suggest over 60% year-on-year growth to 2022, with global retailers expected to take $5.7 trillion in payments by then. Crypto payments account for just a tiny proportion of that total, but rising adoption rates suggest that crypto is proving its worth as an efficient day-to-day payment method.

Given that Bitcoin was conceived as a form of peer-to-peer electronic cash, it should come as no surprise that it and other cryptocurrencies are gaining ground as a means of online payment. 

BitPay, a popular service that enables stores to accept crypto payments without worrying about volatility, processed $1 billion in transactions last year, matching the amount from 2018.

Similar services also show growth. Coinbase Commerce, which recently added Dai as a payment method, has seen a total of $200 million spent through 8,000 integrated merchants. CoinGate, which launched in 2014 and offers settlement to fiat or selected cryptocurrencies, has grown to accept over 50 different digital coins and tokens, including Dai.

All of these merchant services have something in common: They contend with crypto’s volatility by providing the ability to exchange tokens for fiat, necessarily introducing fees and points of centralization. Dai sidesteps those problems because Dai payments don’t need to be exchanged. 

Using Dai is much like using cash: It can be held without risk or penalty, and spent on goods and services. Merchants can choose to exchange Dai to fiat—or not.  

As the leading decentralized stablecoin and the most used cryptocurrency in the DeFi space, Dai offers the ideal combination of features for e-commerce merchants, giving them the best of both the crypto world and fiat world.

Nine Reasons Why Merchants Choose to Accept Dai Payments

Dai provides a unique series of benefits to online retailers and their customers. These include:

  1. Low volatility. Most cryptocurrencies fluctuate in value according to market conditions. Dai is a stablecoin that mitigates volatility through an autonomous system of smart contracts called the Maker Protocol, as well as through decentralized community governance. This means that merchants can receive it and then hold it indefinitely, without the need to exchange it for other fiat currencies, as they do when accepting Bitcoin payments. 
Dai provides a unique series of benefits to online retailers who accept crypto payments, and to their customers.

2. Avoid high payment processing fees. Small businesses can face steep credit card payment processing fees, depending on the volume of transactions and other factors. Crypto gas fees are typically much lower. 

3. Low network fees. Dai transactions incur a small flat fee (Ethereum’s transaction fees are a fraction of Bitcoin’s network fees), paid by the sender.

4. No chargebacks. All Dai payments are transparent and permanent because the token is hosted on a decentralized blockchain. There are no middlemen involved in transactions, and merchants know that once a payment is made, it cannot be canceled or reversed. The only way a customer can receive a refund is if the merchant issues one.

5. Mobile payments. Dai is integrated with many wallets, making it easy for customers and merchants to transact via mobile phones. Forbes suggests that 72% of online purchases will be made via mobile devices by next year.

6. Positive brand identity. Merchants that support crypto payments are likely to be seen as more innovative and tech-savvy than their competitors. 

7. New markets. Crypto has become increasingly popular with millennials. Dai can help merchants increase their exposure to this demographic. 

8. Improve social value. Your business will directly or indirectly help customers who use Dai avoid the problems of hyperinflation in their countries. Dai has an active user community in Latin America for this reason. You would potentially be well-placed to help these users obtain the goods and services they need, or at the very least, help provide awareness and liquidity for the currency they use to hedge their local currencies.

9. Easily added. Several merchant platform plug-ins and services enable the addition of Dai as a payment option quickly and easily. Experienced e-commerce platform developers can choose to self-integrate Dai using public APIs and Maker documentation.

Coinbase Commerce enables its merchants to accept Dai and other cryptocurrency payments.
Coinbase Commerce enables its merchants’ customers to pay for goods and services in Dai and other cryptocurrencies.

Accept Dai And Other Crypto Payments Easily

There are many benefits to accepting Dai payments on your e-commerce website, including low volatility, minimal fees, and no chargebacks. Thanks to the many powerful plug-in tools available, adding Dai as a payment option is fast and can help open your business to new markets in a matter of minutes.  

Integrate Dai into your business and start accepting crypto payments now!

The post Why Online Merchants Should Accept Dai For Crypto Payments appeared first on Maker Blog.

Governance Poll: Base Rate Adjustment, Vault Compensation, and MIPs

https://blog.makerdao.com/governance-poll-july-13-2020/

The Maker Foundation Interim Risk Team has placed a series of Governance Polls into the voting system which presents adjustments to the Base Rate, Vault Compensation, and a series of Maker Improvement Proposals (MIPs).

Poll: Base Rate Adjustment

The Governance Facilitators have placed a governance poll into the voting system which presents a number of possible Base Rate options. Voters are now able to signal their support for a Base Rate within a range of -4% to 4%.

Details on how the Base Rate parameter was introduced, and its impact on the Stability Fee parameters for each collateral asset can be found in the following threads on the MakerDAO forum.

This weekly Governance Poll (FAQ) will be active for three days beginning on Monday July 13 at 16:00 UTC, the results of which may inform an Executive Vote which will go live on Friday July 17 at 16:00 UTC.

Review

The Base Rate is usually not discussed explicitly on a weekly basis as this poll is a regular occurrence. Please review the governance forum to see if there has been any discussion on the vote this week to inform your position before voting.

Next Steps

If the winning result of this poll differs from the current Base Rate parameter value in the Maker Protocol then this change will be included in the Executive Vote on the Friday following the conclusion of this poll.

If the Friday executive passes, then this rate change will become active in the Maker Protocol after the Governance Security Module delay has expired.

Vault Compensation Plan Approval Poll

The Maker Foundation Governance Facilitators have placed a Governance Poll into the voting system on behalf of the community, which the community can use to signal whether to accept and move ahead with the proposed Vault Compensation Plan.

Review

The Vault Compensation Plan was discussed in the Forums and presented on the June 25 Maker Governance and Risk Call. Voters are encouraged to review the plan document and discussion to inform their position before voting.

If you vote “No,” it would be of great help if you could post on https://forum.makerdao.com/ to explain why you do not support the plan and suggest improvements.

Next Steps

If this poll is decided as “Yes” then Maker governance will proceed with the series of votes and steps laid out in the Plan document, beginning with Phase 1.

If the poll is decided as “No” then additional discussion can take place in the forums to determine what changes are necessary to gain community support.

Inclusion Poll for Domain Work Requirements for the Onboarding of MANA (MIP12c2-SP3)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP12c2-SP3: Domain Work Requirements for the Onboarding of MANA) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3139. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for the Weekly Governance Cycle (MIP16)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP16: The Weekly Governance Cycle) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3008. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for Weekly Actual Debt Ceiling and Actual Risk Premium Adjustments (MIP17)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP17: Weekly Actual Debt Ceiling and Actual Risk Premium Adjustments) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3021. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for Meta-Parameter Adjustments (MIP18)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP18: Meta-Parameter Adjustments) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3118. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for Subproposal for Modifying Meta-Parameter Adjustments (Removing the DSR Spread) – MIP18c4-SP1

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP18c4-SP1: Subproposal for Modifying Meta-Parameter Adjustments (Removing the DSR Spread)) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3119. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for Liquidations System 1.1 Upgrade (MIP19)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP19: Liquidations System 1.1 Upgrade) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3098. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Inclusion Poll for MIP12 Amendments (MIP4c2-SP5)

The Governance Facilitators have placed an inclusion poll into the voting system which asks whether the proposal (MIP4c2-SP5: MIP12 Amendments) should be included into the Monthly Governance Poll.

If the Yes votes in this inclusion poll are higher than the combination of No votes plus the Default Inclusion Threshold when the poll ends, the proposal should be included in the Monthly Governance Poll. Note that the Default Inclusion Threshold is set to 3000 MKR. In summary, if Yes votes > (No votes + Default Inclusion Threshold) = inclusion in the Governance Poll.

Review

The proposal can be reviewed here: https://forum.makerdao.com/t/3137. It was also mentioned and possibly discussed on the most recent Governance Call on July 9, 2020.

Next Steps

If the Inclusion poll passes, the Governance Facilitator(s) will confirm this proposals inclusion within the next Monthly Governance Poll on the Thursday Governance and Risk call on July 16, 2020. The Monthly Governance Poll occurs in week 3 of the Governance Cycle.

Resources

MIP3: Governance Cycle describes this type of poll and goes into more detail about its position and significance within the rest of the governance cycle.

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and setup your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

The post Governance Poll: Base Rate Adjustment, Vault Compensation, and MIPs appeared first on Maker Blog.

MakerDAO Approves 4 New Light Feeds For Oracles

https://blog.makerdao.com/makerdao-approves-4-new-light-feeds-for-oracles/

MakerDAO’s Oracles and Feeds bridge the Maker Protocol and world markets. Oracles are specific smart contracts within the Protocol; Feeds are actors that submit price data to the Oracles. That price data is then read by Keepers, who trigger liquidations to help Dai maintain its soft peg to the US Dollar. Each Feed queries a set of many different exchanges.  

To increase the security of the Protocol as MakerDAO moves toward complete decentralization, Maker Governance recently reviewed and discussed Maker Improvement Proposals (MIPs) to add four “Light” Feeds to the existing Oracle group:

  1. MIP10c14-SP1: Appoint on-chain liquidity aggregator Kyber Network as Light Feed
  2. MIP10c14-SP2 Proposal: Appoint API access provider( to Ethereum and IPFS) Infura as Light Feed  
  3. MIP10c14-SP3 Proposal: Appoint Ethereum block explorer Etherscan as Light Feed
  4. MIP10c14-SP4 Proposal: Appoint open-source Web3 development community Gitcoin as a Light Feed

A mid-June Governance Poll determined that the above proposals proceed to an Executive Vote, which was held on July 3. As a result of that vote, the MIPs were accepted by MKR holders. 

New Light Feeds for Oracles have been accepted by Maker Governance.

These and other MIPs ensure that Maker Governance is working to meet the current and future needs of the Maker Protocol, and showcase how decentralized governance is thriving. 

Why Are Oracles Important?

By design, blockchains are self-contained systems that are extremely effective at maintaining accurate distributed ledgers through decentralized consensus. They are also self-referential, meaning they are not designed to look beyond themselves for information. This raises an issue for projects that need to interact with real-world data, such as market prices, weather info, traffic conditions, etc., to operate efficiently and effectively. The Maker Protocol is one such project. It requires market price information to ensure all Dai in existence is adequately collateralized. 

Oracle Feeds deliver the prices of collateral assets to the Protocol from the centralized exchanges on which the market prices are established. In simpler terms, Feeds pull the prices and record them to the blockchain as transactions. Some do so regularly (e.g., every few minutes); MakerDAO’s Oracles update prices on the blockchain every time they change by 0.5% or more. 

Why Are Multiple Oracles Necessary?

To help ensure price accuracy and build trust in the Maker Protocol, multiple Feeds pull price data from many sources. If one Feed goes down due to a service outage, for example, or provides information wildly different from another (due to price fluctuations on a particular exchange or deliberate interference), there are many other feeds that work together to ensure an accurate picture. As of this writing, the MakerDAO Feed Dashboard shows prices for seven different collateral assets based on 24 Feeds. 

In the Maker Protocol, a smart contract known as the Medianizer takes the median of all the price data fed to it. The more feeds used, the greater their credibility and the more trustworthy the Oracles. Simply put, with each new Feed, the Protocol becomes more decentralized, removing single points of failure and ensuring that robust and reliable data is delivered for the ecosystem’s smart contracts and Keepers to use. 

 Light Feeds for Maker Oracles are provided by significant organizations in the Ethereum ecosystem.
Four organizations providing Light Feeds as part of the Maker Oracle Feeds.

About the “Light” Feed Providers

At the outset, MakerDAO Oracle Feeds were “Dark”—provided pseudonymously to protect the individuals running them from blackmail and extortion. But toward the end of 2019, Maker Governance began adding “Light” Feeds.

Light Feeds are provided by publicly-known entities, typically significant organizations in the Ethereum ecosystem. These organizations are better prepared than individuals to withstand coercion or hacking, and their reputations add credibility to the data they provide.

A number of major players in the crypto scene run Light Feeds in addition to the Maker Foundation, including dYdX, 0x, TokenSets (formerly Set Protocol), Gnosis, Kyber, Infura, Etherscan, and Gitcoin.

Etherscan has been a block explorer in the Ethereum ecosystem for the past five years.  “Etherscan has worked closely with countless projects in providing support to display on-chain and off-chain data,” says Elvis Hee of Etherscan’s Product and Strategy team. “We believe our ethos of neutrality and impartiality will help in providing a reliable source of pricing data.”

On the Gitcoin platform, Dai is the second most used token (Sai is number three),  according to Gitcoin Founder Kevin Owocki. “We have a rational economic incentive to keep the price data clean and good because it enables members of Gitcoin’s community to transact with one another,” he says. “I am pleased Gitcoin will run a Light Feed for Maker.”  

Finally, Infura co-founder Michael Wuehler is happy about the steps Maker is taking. “We are excited by Maker’s process of decentralizing what has become a systemically critical piece of the Web3 ecosystem,” he says. “At Infura, we bring our strong infrastructure capabilities, experience, and reputation to further contribute to this decentralization.”  

Participate in Maker Governance to Empower Decentralization

The submission of MIPs, including those proposing new Oracle Feeds, allow community members to suggest changes and additions to the Maker system, and define key issues. They are critical to the evolution of Maker governance as the project carefully moves towards full decentralization.

If you’re an MKR holder, or plan to become one, learn more about participating in Maker governance by reading the Voter Onboarding Guide and the Governance and Risk Overview on Awesome MakerDAO, and join the public Governance and Risk Meetings on Thursdays at 16:00 UTC.

The post MakerDAO Approves 4 New Light Feeds For Oracles appeared first on Maker Blog.

Welcome to the Evolution: How DeFi is Augmenting the Global Financial System

https://blog.makerdao.com/welcome-to-the-evolution-how-defi-is-augmenting-the-global-financial-system/

There’s no question that blockchain technology is revolutionary. When Satoshi Nakamoto introduced the world to Bitcoin and the blockchain technology behind it in 2008, he announced a radical, decentralized financial (DeFi) system—one that for the first time enabled users to make peer-to-peer transactions online and without a third-party intermediary. But while Bitcoin and blockchain tech have proven disruptive, they have not replaced the current centralized financial (CeFi) system. Instead, cryptocurrencies built on the blockchain have helped to evolve the traditional structure over the last 12 years. 

Today, evolution of the global financial system continues through augmentation. And as an open, transparent, and composable framework, the Maker Protocol provides the ideal bridge between those two apparently disparate systems.

Incremental Improvements

New innovations often build on old technologies in a series of incremental changes. For example, the US Dollar has existed in several different forms (gold- and silver-backed coins, paper fiat notes, etc.) since the Coinage Act of 1792. The Dai stablecoin, which is soft-pegged to the USD, is a currency better suited for the times and individual needs. 

Dai stands out among currencies, helping to facilitate the evolution of the global financial system.
Dai stands out in a crowd of currencies.

Decentralized and borderless, Dai is the world’s first unbiased currency, offering users everywhere greater control of their assets, a higher degree of transparency, and an increase in convenience, regardless of location and financial history. 

As businesses and institutions integrate blockchain tech into their existing products and services, they witness firsthand how it brings radical advantages to the table. New fintech companies, such as Wirex, especially recognize the benefits of Dai within the context of existing financial markets. And that recognition is what’s giving rise to DeFi and a merging of the traditional economy with new technology.

This is not a hypothetical future; it’s happening right now. 

“The Maker Community has already begun the process of integrating the Maker Protocol with the real world,” explains Maker Foundation CEO Rune Christensen. “The addition of the USCD stablecoin to the growing list of collateral assets is one great example of Maker Governance working with the tools of large, regulated players (e.g., Circle) to bridge the gap between centralized and decentralized finance.  Another is that the decentralized governance community voted to consider real-world assets in the system, and now will move to the next step—a technical evaluation of those potential assets.”

The Power of DeFi

DeFi is changing the financial services world, from the composable infrastructure of its applications to its functionality and consumer benefits—but it’s doing so through augmentation, not revolution or replacement.

Composability means that developers can build on the Maker Protocol to create new dapps.

Playing a strong role within the DeFi movement, Dai is changing the way people and businesses handle their finances. The stablecoin offers several advantages over traditional currencies, creating opportunities while at the same time solving problems:

Traditional financial services and digital currencies are evolving and converging. For example, Dai is being integrated seamlessly into traditional and regulated payment rails, such as crypto debit cards

The Maker Protocol is the bridge between DeFi and the traditional global financial system
The Maker Protocol is the bridge between DeFi and the conventional financial industry

Such progress raises a big question, however: How do we integrate more deeply with the real world and operate in full compliance with legal systems, authorities, and issuers without compromising decentralization—the fundamental value prop of DeFi? The answer is the Maker Protocol.

“The Maker Protocol is designed to do this correctly, through risk management and diversification of collateral assets,” says Rune. “To integrate successfully, it can’t rely on one asset or custodian for real-world assets, but rather on hundreds of assets and custodians diversified across different markets worldwide.

This is, of course, very similar to the structure of blockchains, which gain their decentralization from the existence of many different nodes and trading venues, spread across multiple geographical locations.

Institutions Can Now Offer Customers Greater Financial Control 

Most importantly, new solutions are giving users greater control over their finances. New fintech products leverage blockchain and other technologies to provide benefits on top of existing systems without replacing them, allowing for incredible growth. 

Crypto and blockchain tech are already changing mainstream consumer finance. Take Square’s Cash app, which now allows seamless access to Bitcoin and equities. Money can easily be moved between crypto and other assets, as well as sent to other users.

These new services often target tech-savvy millennials, who missed out on many of the return-on-investment opportunities that their parents enjoyed, such as real estate. So many millennials are saddled with student loan debt, which can price them out of the real estate market. Millennials are also more wary of the stock market than previous generations. Apps like Raiz and Robinhood offer easy, low-cost, and gamified ways to invest. Similarly, online-only banks, like Nubank in Brazil, are challenging brick and mortar institutions by providing better service and returns on savings.

Decentralized protocols and applications fit well within these broader developments, enabling greater transparency and openness, and lowering costs and barriers to entry. As blockchain and other technologies are incorporated into new and evolving financial products and services, we can expect further devolution of power to consumers, facilitating greater autonomy and flexibility.

But the dovetailing of two very different systems could present a risk in that CeFi could have a centralizing effect on some DeFi protocols. The Maker Protocol addresses this issue through the decentralized structure of MakerDAO governance.

“MKR holders ensure that no single collateral asset is given too much dominance,” explains Rune. “They, rather than Dai holders, assume the risk of centralization. Additionally, all Maker governance decisions are transparent and fully scrutinized by the community in online forums, such as the Maker Forum, and in weekly Maker Governance meetings. So, it should always be clear when the fundamental principles of decentralization are at risk of being ignored..”

The Global Financial Infrastructure of the Future Depends on Evolution

The integration of blockchain tech and DeFi into the traditional financial services sector is driving innovation globally and resulting in greater control, transparency, and choice for consumers. And Dai and the Maker Protocol are at the center of this movement.

To begin your DeFi journey, learn more about MakerDAO and the Maker Protocol, and discover Dai on Oasis.

The post Welcome to the Evolution: How DeFi is Augmenting the Global Financial System appeared first on Maker Blog.