--- tags: Weekly Relay --- # Weekly Relay: April 5th - April 11th, 2022 ![](https://i.imgur.com/Bnd0lSn.png) _Hi everyone, thanks for checking out the Weekly Relay! Whether you hold MKR or DAI, own a vault, or want to get more involved in governance, this is your one-stop shop for MakerDAO updates._ > The public PDF version is available [here.](https://pdfhost.io/v/BEiqY0.Af_Weekly_Relay__April_5th_April_11th_2022) > Show some love to our [Medium account](https://medium.com/@MkrGovComms) :heart: ## šŸµ Current Events ### [Recommended Guidelines for Collateral Onboarding](https://forum.makerdao.com/t/mip6-recommended-guideline-metrics-for-onchain-collateral-onboarding/14503) Continuing the ongoing discussion regarding the most effective process for onboarding new assets into Maker, this collaboration between the CES, Risk, Growth, PE, and Oracle Core Units offers a set of guidelines for assessing candidate collateral. Because every asset has its unique collection of attributes and market conditions are always in flux, no assessment framework can provide hard-and-fast "Yes" or "No" answers every time; the goal is to provide a toolbox to help MakerDAO make more well-informed and educated decisions. For additional context, check out the [latest Governance and Risk Call](https://youtu.be/kj92mk6qbHA?t=2032) discussing collateral onboarding and management. <details><summary>Recommendations:</summary><br> **30M Dai minimum target debt ceiling**: The Core Units involved in the collateral onboarding process have agreed that candidate collateral should be expected to generate at least 30M Dai. Reasons include collateral onboarding and maintenance costs, the upfront work required, ongoing operational/maintenance work, bandwidth costs, and opportunity costs. **Clear business case**: The technical ability to support a 30M+ debt ceiling doesn't mean much without an audience of users willing and able to generate more Dai. For this reason, it is crucial to investigate how much actual usage a new type of collateral may stimulate. **Min. $250M market cap of circulating supply**: Requiring this minimum will help ensure that Maker does not become overexposed to any newly onboarded assets. If we assume a max 30% of circulating supply as a guideline for crypto token collateral and average debt weighted CR in the vault type at 250%, the asset needs a minimum circulating market cap of $250M for a minimum DC of $30m (`Min DC*CR/MaxRatioOfSupply = 30M*2.5/0.30 = 250M`). ![](https://i.imgur.com/TFZ1G7p.png) **Min. $40M of onchain liquidity (132% of debt ceiling)**: Like the minimum circulating supply, this minimum is derived from the debt ceiling figure. By considering the CR distribution of positions in the ETH-A vault and an expected drawdown or jump risk of 40%, it is expected that approximately 26.5% of total Dai debt will be liquidated. After this 40% drop, vaults CR will go below LR. ![](https://i.imgur.com/JSgCGDW.png) Based on the previous minimum debt ceiling, an estimation can be made for how much Dai debt would be liquidated in such a scenario. ![](https://i.imgur.com/HJ7WO1g.png) If the liquidation penalty is 13%, the system can slip up to approximately 27% price slippage before depleting the buffer created by the penalty and potentially creating bad debt. Therefore, the maximum allowed price slippage after a 40% drop is 27%. By utilizing this number (27%) in the AMM x\*y=k formula, we can derive that such slippage occurs when around 35-40% of assets are sold compared to the pool size of the asset. This means that assets should have five times more on-chain liquidity compared to liquidated debt (in the case of an equally weighted two-asset AMM). ![](https://i.imgur.com/kyvvRJR.png) **Traded on at least five exchanges with**: 1. **Daily exchange volume of the collateral asset >$2M.**, and 2**Order book depth of over $200k in the +2% and -2% tiers**: The presence of these metrics will help ensure that the price sources needed to build and maintain an oracle for the new asset are difficult to manipulate. **Technical metrics to gauge complexity and upfront implementation cost**: The more of these metrics a candidate collateral type checks off, the easier the onboarding should be in terms of technical difficulty: * Implements ERC20 token standard * Can utilize existing ExchangeCallee contracts for flash liquidations; the currently supported exchanges are Uniswap v2, Uniswap v3, and Curve; must have sufficient liquidity on these exchanges to support liquidations * Audit(s) from a reputable firm(s), e.g., Trail of Bits, ChainSecurity, ABDK * No admin functions/upgradability * No rebasing/changing supply of individual token balances * No blacklists/whitelists * Transfer semantics should be simple; e.g., no fees on transfers For more discussion on collateral onboarding, this time focusing on real-world assets, scroll down to the Forum Insight below. </details></br> ## šŸ—³ļø This Week in Governance ### Maker Improvement Proposals (MIPs) [Weekly MIPs Update #82](https://forum.makerdao.com/t/weekly-mips-update-82/14570) by @blimpa ![](https://i.imgur.com/MvwQ5F6.png) In the Monthly Governance Cycle, weā€™ve had fifteen Formal Submissions; three onboard a single Core Unit (EVENTS-001); two add the Collateral Engineering Services Core Unit (CES-001) as collateral onboarding domain team. Ratification Polls for the current Governance Cycle close on Monday, April 25. Proposals eligible to enter the May Governance Cycle cannot be modified after Wednesday, April 27. --- RFC and FS Dates for reference and existing proposals can be seenĀ [on thisĀ proposal tracker](https://docs.google.com/spreadsheets/d/1OHZa-f4C2Z8PteZBb1Mfiz-MJn5Ky_PM15mM1QLgIRY/).\ If you have any questions about the voting process at MakerDAO, theĀ [Practical Guide to Voting](https://manual.makerdao.com/governance/voting-in-makerdao/practical-guide-voting)Ā will be useful. ### Executive Vote [MOMC Parameter Changes, CRVV1ETHSTETH-A Debt Ceiling Increase, Recognized Delegate Compensation, ETHAmsterdam Event SPF Funding](https://vote.makerdao.com/executive/template-executive-vote-momc-parameter-changes-crvv1ethsteth-a-debt-ceiling-increase-recognized-delegate-compensation-ethamsterdam-event-spf-funding-april-08-2022#proposal-detail) <details><summary>This executive proposal passed, and the following changes occurred within the Maker Protocolā¬‡:</summary><br> #### MOMC Parameter Changes Stability Fee Decreases | Vault | Change | Previous | New | | :---: | :----: | :------: | :-: | | WSTETH-A | -0.25% | 2.5% | 2.25% | | CRVV1ETHSTETH-A | -1.25% | 3.5% | 2.25% | | WBTC-A | -0.5% | 3.75% | 3.25% | | WBTC-B | -0.5% | 5.0% | 4.5% | | GUNIV3DAIUSDC1-A | -0.1% | 0.1% | 0.0% | | GUNIV3DAIUSDC2-A | -0.20% | 0.25% | 0.05% | Maximum Debt Ceiling Increases | Vault | Change | Previous | New | | :---: | :----: | :------: | :-: | | GUNIV3DAIUSDC1-A | +650MM DAI | 100MM DAI | 750MM DAI | | GUNIV3DAIUSDC2-A | +250MM DAI | 750MM DAI | 1B DAI | Target Available Debt Increase | Vault | Change | Previous | New | | :---: | :----: | :------: | :-: | | GUNIV3DAIUSDC1-A | +40MM DAI | 10MM DAI | 50MM DAI | D3M Target Borrow Rate Increase | Vault | Change | Previous | New | | :---: | :----: | :------: | :-: | | DIRECT-AAVEV2-DAI | +0.65% | 2.85% | 3.50% | #### CRVV1ETHSTETH-A Maximum Debt Ceiling (line) Increase As a result of thisĀ [post](https://forum.makerdao.com/t/immediate-short-term-parameter-changes-proposal-for-crvv1ethsteth-a-dc-and-gap-increase/14476)Ā from theĀ [Risk Core Unit (RISK-001)](https://mips.makerdao.com/mips/details/MIP39c2SP2), the CRVV1ETHSTETH-A Maximum Debt Ceiling was increased by 2 million DAI fromĀ **3 million DAI**Ā toĀ **5 million DAI**. Please note that a Maximum Debt Ceiling of 5 million DAI for this vault type was already approved by an on-chainĀ [poll](https://vote.makerdao.com/polling/Qmek9vzo). #### Recognized Delegate Compensation As perĀ [MIP61: Recognized Delegate Compensation](https://mips.makerdao.com/mips/details/MIP61), a total ofĀ **77,183 DAI**Ā was distributed to nine Recognized Delegates as itemized below: | DAI Transferred | Delegate | | :-------------: | :------: | | 12,000 DAI | [FlipFlopFlap Delegate LLC](https://vote.makerdao.com/address/0xaf8aa6846539033eaf0c3ca4c9c7373e370e039b) | | 12,000 DAI | [schuppi](https://vote.makerdao.com/address/0xb21e535fb349e4ef0520318acfe589e174b0126b) | | 12,000 DAI | [Feedblack Loops LLC](https://vote.makerdao.com/address/0x845b36e1e4f41a361dd711bda8ea239bf191fe95) | | 10,761 DAI | [MakerMan](https://vote.makerdao.com/address/0x22d5294a23d49294bf11d9db8beda36e104ad9b3) | | 9,295 DAI | [ACREinvest](https://vote.makerdao.com/address/0x4d3ac33ab1dd7b0f352b8e590fe8b62c4c39ead5) | | 7,598 DAI | [monetsupply](https://vote.makerdao.com/address/0x45127ec92b58c3a89e89f63553073adcaf2f1f5f) | | 6,640 DAI | [JustinCase](https://vote.makerdao.com/address/0xcdb792c14391f7115ba77a7cd27f724fc9ea2091) | | 6,606 DAI | [GFX Labs](https://vote.makerdao.com/address/0xf60d7a62c98f65480725255e831de531efe3fe14) | | 283 DAI | [Doo](https://vote.makerdao.com/address/0x8804d391472126da56b9a560aef6c6d5aaa7607b#delegate-credentials) #### ETHAmsterdam Event Special Purpose Fund DAI As per this successfulĀ [Special Purpose Fund](https://mips.makerdao.com/mips/details/MIP55)Ā (SPF)Ā [application](https://mips.makerdao.com/mips/details/MIP55c3SP3), 50,000 DAI was transferred to the ETHAmsterdam SPF Event multi-sig wallet at the addressĀ [0xF34ac684BA2734039772f0C0d77bc2545e819212](https://etherscan.io/address/0xF34ac684BA2734039772f0C0d77bc2545e819212). Further information about this wallet set-up can be found in this forumĀ [post](https://forum.makerdao.com/t/mip55c3-sp3-ethamsterdam-event-spf/13781/74). </details></br> ### Active Governance Polls <details><summary>There are 12 ratification polls and one Risk parameter adjustment poll:</summary><br> | Poll Name | Discussion | | :-------: | :--------: | | [Adjust CRVV1ETHSTETH-A System Parameters](https://vote.makerdao.com/polling/QmeTfgKP) | [Discussion](https://forum.makerdao.com/t/immediate-short-term-parameter-changes-proposal-for-crvv1ethsteth-a-dc-and-gap-increase/14476) | | [Governance Communications Core Unit, COM-001, Mandate Refresh (MIP39c2-SP30)](https://vote.makerdao.com/polling/QmWCUEaV) | [Discussion](https://forum.makerdao.com/t/mip39c2-sp30-governance-communications-core-unit-com-001-mandate-refresh/13197) | | [Dissolution of Content Production, MKT-001, Multi-Sig Request (MIP47c3-SP1)](https://vote.makerdao.com/polling/QmXhSC8x) | [Discussion](https://forum.makerdao.com/t/mip47c3-sp1-dissolution-of-content-production-mkt-001-multi-sig-request/13991) | | [Modify Protocol Engineering Core Unit Budget, PE-001 (MIP40c3-SP68)](https://vote.makerdao.com/polling/QmWphKJY) | [Discussion](https://forum.makerdao.com/t/mip40c3-sp68-modify-protocol-engineering-core-unit-budget-pe-001/13797) | | [Add Data Insights Core Unit Budget (MIP40c3-SP64)](https://vote.makerdao.com/polling/Qme3VaY4) | [Discussion](https://forum.makerdao.com/t/mip40c3-sp64-add-data-insights-core-unit-budget/13791) | | [Modify Core Unit Budget, COM-001 (MIP40c3-SP62)](https://vote.makerdao.com/polling/QmWQBUi6) | [Discussion](https://forum.makerdao.com/t/mip40c3-sp62-modify-core-unit-budget-com-001/13724/1) | | [Modify Core Unit Budget, COM-001 (MIP40c3-SP63)](https://vote.makerdao.com/polling/QmUntLXk) | [Discussion](https://forum.makerdao.com/t/mip40c3-sp63-modify-core-unit-budget-com-001/13654/1) | | [Adding CES-001 as a Collateral Onboarding Domain Team](https://vote.makerdao.com/polling/QmVAD1ZD) | [Discussion](https://forum.makerdao.com/t/mip4c2-sp-mip7-amendments/13788) | | [Modify the Collateral Application Form (MIP6c3-SP2)](https://vote.makerdao.com/polling/QmTGxRjL) | [Discussion](https://forum.makerdao.com/t/mip6c3-sp2-modify-the-collateral-application-form/13787) | | [Adding Events Core Unit (EVENTS-001)](https://vote.makerdao.com/polling/QmSVzGcm) | [Discussion](https://forum.makerdao.com/t/mip39c2-sp32-adding-events-core-unit-events-001/13780) | | [Methodology and Review Process for Structured Finance Transactions (MIP67)](https://vote.makerdao.com/polling/QmWt5fov) | [Discussion](https://forum.makerdao.com/t/mip67-methodology-and-review-process-for-structured-finance-transactions/13737) | | [Pairwyse Licensure (MIP66)](https://vote.makerdao.com/polling/QmdbNKMR) | [Discussion](https://forum.makerdao.com/t/mip66-pairwyse-licensure/13554) | | [Update Data Insights Core Unit Mandate (MIP39c2-SP31)](https://vote.makerdao.com/polling/QmXEvrBB) | [Discussion](https://forum.makerdao.com/t/mip39c2-sp31-update-data-insights-core-unit-mandate/13790) | </details></br> *Check out [April 4th's](https://forum.makerdao.com/t/weekly-relay-march-28-april-4-2022/14450) issue of Weekly Relay for more information on the most recently concluded polls.* ### Community Greenlight Polls There were no active community greenlight polls for the week of April 5 - April 11, 2022. _Check out an "at-a-glance" view of the current Vault types and their parameters on [MakerBurn.](https://makerburn.com/#/rundown)_ ### Active Signal Requests **[Advance ā€œMIP4c3SP3: Amend MIP64 to allow more flexibility in scopeā€ to on-chain poll](https://forum.makerdao.com/t/advance-mip4c3sp3-amend-mip64-to-allow-more-flexibility-in-scope-to-on-chain-poll/14435)** @psychonaut submits a signal request to push [MIP4c3-SP3](https://forum.makerdao.com/t/mip4c3sp3-amend-mip64-to-allow-more-flexibility-in-scope/14200) as an on-chain poll. **Vote will run until April 12, 2022.** <details><summary>Here are the current voting results:</summary></br> ![](https://i.imgur.com/bAzHHuM.png) </details></br> **[Extend SHCU (SH-001) Budget Until May Governance Cycle](https://forum.makerdao.com/t/signal-request-extend-shcu-sh-001-budget-until-may-governance-cycle/14511)** @aburban90 has recently revised his MIP40c3: [modify the Strategic Happiness Core Unit Budget](https://forum.makerdao.com/t/mip40c3-sp67-modify-core-unit-budget-strategic-happiness-sh-001/13805). Due to the original budget quarter now being complete, Andrew requests a one-time transfer of 35,000 DAI to cover the time gap between budget cycles. The funds will be used to produce and deliver swag for Amsterdam and other upcoming events until the next Governance Cycle. **Vote will run until April 21, 2022.** <details><summary>Here are the current voting results:</summary></br> ![](https://i.imgur.com/afaPMZs.png) </details></br> **[Onboard D3M for TrueFi](https://forum.makerdao.com/t/signal-request-onboard-d3m-for-truefi/14563)** TrueFi is signaling to onboard a D3M for a newly created TrueFi 3-month-maturity DAI lending portfolio with an initial debt ceiling of 50-100 million DAI. @RyanRodenbaugh, a member of TrueFi, states that this onboarding is in line with MakerDAOā€™s ā€˜[Aggressive Growth Strategy.](https://forum.makerdao.com/t/aggressive-growth-strategy/13958)ā€™ Pros: - Non-Crypto Lending Opportunities - Customized Loan Opportunities - Future Collaborations Cons: - Smart contract risk - Multisig Risk - Illiquidity Risk - Compliance Risk <details><summary>Here are the current voting results:</summary></br> ![](https://i.imgur.com/xDM6RVj.png) </details></br> ## šŸ¤æ Community Deep Dai-ve ### Tweet(s) of the Week https://twitter.com/tokenterminal/status/1513519561043292166 https://twitter.com/DaIvinity/status/1513504153686974473 ### Forum Insight **[Charting a Path For RWAs - The Case For Continuity](https://forum.makerdao.com/t/charting-a-path-for-rwas-the-case-for-continuity/14519)** Authors: @teej, @Eumenes, and @SebVentures Several authors contributed to posting a lengthy but very detailed and candid contextualization of MakerDAO's evolution concerning Real World Assets, beginning with the early MakerDAO 1.0, which was focused on crypto loans, and moving on to filling in everything that happened between then and now, such as the economic realities of RWAs, the opportunities they present, stability risks and solutions, and continued decentralization. The case focuses on continuity, such as pushing the "Aggressive Growth Strategy" and raising our Surplus Buffer. Additionally, we also need a code of principles to help us stay on the most promising path forward. RWAs have the potential to strengthen both the protocol and public belief in the peg--we should take advantage of that. @Traster_Tray has already responded with another thread, [A Letter to the CUs on Community Impatience and Trust](https://forum.makerdao.com/t/a-letter-to-the-cus-on-community-impatience-and-trust/14560). The author presents their perspective on some of the current issues around RWAs, specifically among the community. This post discusses shifting directions, the unsustainable rise in operational expenses, a growing perception of greed and waste, centralized voting power, and Core Unit influence and power. ## šŸ“† Meetings and Events ### Last Week's Call Recordings - Governance and Risk | Episode 185 - [Forum](https://forum.makerdao.com/t/governance-and-risk-185-thursday-april-07-17-00-utc/14464) | [Video](https://youtu.be/kj92mk6qbHA) | [Summary](https://medium.com/@MkrGovComms/governance-mips-forums-collateral-initiatives-and-management-73d8c0587c8c) ### Upcoming Calls - Focus On #10: Dai Foundation Core Unit Update - [Forum](https://forum.makerdao.com/t/focus-on-10-dai-foundation-core-unit-update/14349) | [Join Link](https://www.crowdcast.io/c/focus-on-10) happening Wednesday at 2022-04-13T15:00:00Z #### Governance & Risk - [Join Link](https://zoom.us/j/697074715) | [Agenda](https://forum.makerdao.com/c/governance/gnr/8) - Thursdays at 17:00 UTC #### Core Unit Office Hours - [Join Link](https://us02web.zoom.us/j/82603350722?pwd=RThleVo5QlBRT1FuOWxiRCs3K0k2Zz09) | GovAlpha Governance Q&As - Mondays 17:00 UTC - [Join Link](meet.google.com/frj-vpji-huc) | Immunefi Security - Tuesdays 00:00 UTC - [Join Link](https://www.google.com/url?q=https://meet.google.com/bjm-qiup-hif&sa=D&source=calendar&ust=1620493080631000&usg=AOvVaw056SKuyQn3F67FAtJTPIbl) | Protocol Engineering - Tuesdays 15:00 UTC - [Join Link](https://us02web.zoom.us/j/85252786103?pwd=bEZaZXdEcGlSWWd5bmpxMDBvVjdEUT09) | Sustainable Ecosystem Scaling - Tuesdays 15:30 UTC - [Join Link](https://meet.google.com/sap-nttu-xga) | Growth - Wednesdays 17:00 UTC - [Join Link](https://meet.google.com/kwf-qayf-xdq) | Real World Finance - Wednesdays 17:00 UTC - [Join Link](https://meet.google.com/nio-jrqq-guu) | Governance Communications - Fridays 18:00 UTC ## āš“ Useful Links [Forum](https://forum.makerdao.com) and [Maker Chat](https://chat.makerdao.com) Discuss and debate MakerDAO. [Call Calender](https://calendar.google.com/calendar/u/0?cid=bWFrZXJkYW8uY29tXzNlZmhtMmdoaXBrc2VnbDAwOWt0bmlvbWRrQGdyb3VwLmNhbGVuZGFyLmdvb2dsZS5jb20) | [Votes & Event Calendar](https://calendar.google.com/calendar/embed?src=bdf4un05hpg0611lg3ieue4t3c%40group.calendar.google.com&ctz=America%2FNew_York) Subscribe to both for all public calls, votes, and other reminders. [Participation Tools](https://community-development.makerdao.com/en/learn/governance/participate) Library of useful links for stakeholders: protocol analytics, DAI analytics, collateral & liquidation metrics, governance history, and auctions data. [Governance Portal](https://makerdao.com/en/governance) Voting dashboard for MKR voters. [MIPs Portal](https://mips.makerdao.com/mips/list) MIPs dashboard for everyone. [Learning Portal](https://community-development.makerdao.com/en/learn/) and [Technical Documentation](https://docs.makerdao.com/) Learn more about the Maker protocol. ### šŸŽ™ļø Have Feedback? We value your input! Take our [survey](https://survey.sogosurvey.com/r/OBV0Y7) to let us know what we might be missing or how to do better. *Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does not serve as financial advice or an inducement to vote in any specific way. This update is for information and communication purposes only.* ##### Credit @Artem_Gordon and @nothsa