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tags: Forum at a Glance
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# Forum at a Glance: May 5 - May 11, 2022


Welcome to the one-stop shop for a TL;DR on everything discussed on the MakerDAO forum.

###### Online PDF Version available [here.](https://pdfhost.io/v/Nov6JVO74_Forum_at_a_Glance_May_3_11_2022)

*Links reflect our views of the most noteworthy activities in the governance, risk, and oracles categories. Disagree? Think something should be added? Leave a reply or send a PM.*

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‘What is the most relevant information on the forums this week for MKR and Dai holders?’

1. Centrifuge and Maker have finalized the [Trust Indenture Agreement](https://a6ntgjmj2vt3i6kizpskyyvwr42mbu2z42vfweus23nbjxtv.arweave.net/B5szJYnVZ7R5SMvkrGK2jzTA01nmql-sS-ktbaFN51w), paving the way for the rapid onboarding of real-world assets into Maker via the Centrifuge protocol.
2. @SebVentures provided a [second overview](https://forum.makerdao.com/t/alm-liquidity-2022-05/15050) analyzing Maker's stablecoin liquidity and how it might affect our Asset-Liability Framework.
3. The Maker Wormhole ([Now called Maker Teleport](https://forum.makerdao.com/t/maker-wormhole-new-name-maker-teleport/15115)) Oracles will enable users to use the Wormhole bridge with speed and security that outpaces the existing competition. Learn more about how they work in [Wormhole Oracle Overview](https://forum.makerdao.com/t/wormhole-oracle-overview/15077).

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**[Centrifuge Update: Cornerstone Agreement Complete to Onboard RWAs to Maker with Centrifuge](https://forum.makerdao.com/t/centrifuge-update-cornerstone-agreement-complete-to-onboard-rwas-to-maker-with-centrifuge-successful-collaboration-with-incubating-lts/15005)**

Centrifuge and MakerDAO have finalized a cornerstone agreement to enable RWA onboarding at scale via the Centrifuge protocol: [The Trust Indenture Agreement](https://a6ntgjmj2vt3i6kizpskyyvwr42mbu2z42vfweus23nbjxtv.arweave.net/B5szJYnVZ7R5SMvkrGK2jzTA01nmql-sS-ktbaFN51w).

In the coming weeks, @elidco and @christiancdpetersen will host an AMA to provide interested community members with an overview of the key points.

<details><summary>What is a trust indenture?</summary><br>
In short, a trust indenture is a contract used in a bond offering between the bond issuer and a trustee detailing the terms and conditions the trustee must adhere to and the rights of the trust beneficiaries (e.g., bondholders and tokenholders). A trust indenture also contains terms and conditions about the circumstances that may lead to a default and the process for handling this situation.

Learn more about trust indentures in @elidco's [explainer post](https://forum.makerdao.com/t/what-is-a-trust-indenture-what-is-an-indenture-trustee/14697).
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**[The MakerDAO Announcement Table](https://forum.makerdao.com/t/the-makerdao-announcement-table/15060)**

The Maker Brand Team has put together a [MakerDAO Announcement Table](http://announcements.makergrowth.com/), collecting all announcements prepared for MakerDAO's Twitter and media audience.


**Fields**

- **Priority:** A number from 1 (highest priority) to 5 (lowest priority) that will change according to the timeline of each announcement.
- **Type:** Where the announcement comes from. This enables the content team to locate updates about product and governance processes more easily and find resources for creating new content.
- **Content Status:** The status of the overall announcement process.
- **Launch Status**: The release status of the product, partnership, integration, or deployment to be announced.
- **Last Update Resource:** Link to a resource that will help the content team find information on the deployment to be announced.
- **Assets:** Communication assets to be developed for each announcement.
- **Deployment Date:** Tentative launch date of the product, partnership, integration, or deployment to be announced.
- **Announcement Date:** Tentative date for making the announcement.

**[Advance Notice G&R Time Change Trial - May 26 and June 30](https://forum.makerdao.com/t/advance-notice-g-r-time-change-trial-may-26-and-june-30/15097)**

GovAlpha and GovComms will be experimenting with a new time for the monthly Governance & Risk call. On Thursday, May 26, and Thursday, June 30, the next two meetings will take place at 21:00 UTC. The time change aims to make the meeting more inclusive of interested community members whose time zones did not allow them to attend the meeting at its current 17:00 UTC timeslot, particularly those in Oceania and East Asia.

**[Important Message - Media](https://forum.makerdao.com/t/important-message-media/15111)**

Due to recent events, all messages related to media queries should be directed to [e-mail].

**[Maker Wormhole new name: Maker Teleport](https://forum.makerdao.com/t/maker-wormhole-new-name-maker-teleport/15115)**


The Protocol Engineering Core Unit has been working on a product that will enable fast, secure cross-chain transfers, particularly between L2s. While the initial name chosen for this project was "Wormhole," Jump Trading has been building a bridge product with a similar name and has acquired wormhole.com as a brand asset. Given this state of affairs, the Protocol Engineering CU and the Brand Team have decided to rename Maker Wormhole to Maker Teleport.

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**[Wormhole Oracle Overview](https://forum.makerdao.com/t/wormhole-oracle-overview/15077)**

Maker Wormhole enables users to withdraw quickly from an L2 chain to another L1 or L2 chain. To function properly, Wormhole smart contracts on the destination chain need to know when withdrawals happen on the source chain. Most L2 chains, Optimism, in particular, have a long delay between initiating the withdrawal and confirming the transaction, which means that Maker will need to obtain withdrawal status using a different method to ensure a smooth user experience.

The Maker Oracle can provide this information by utilizing its network of Oracle Feeders, which will now sign attestations about the occurrence of specific events on different blockchains and their existing role of signing price information.

<details><summary>Further Details</summary></br>

**Design Goals**
Design goals for Maker Wormhole include:
strong resiliency and uptime,
censorship resistance,
minimizing requirements for running Oracle Feeders, and
minimizing the attack surface against Feeders.

**Architecture**

The basic process is:
Step 1: Witness the withdrawal event.
Step 2: Collect the attestations in a database.
Step 3: Serve the attestations to end users via an API endpoint.

**Specific Features**
Some of the specific features of the Maker Wormhole system include support for multiple RPC nodes to protect from bad actors, a permissionless API endpoint so anyone can access Feeder attestations, and the use of the well-regarded libp2p protocol, which has strong spam resistance and allows for permissionless access to the network.

</details></br>

**[ALM Liquidity: 2022-05](https://forum.makerdao.com/t/alm-liquidity-2022-05/15050)**

While our stablecoin liquidity reserves have dropped by 2B in fewer than three months, they remain strong at their present level of 4B.

<details><summary>But where did that 2B go? Four particular areas made sizable impacts:</summary><br>

**Bridges**


The biggest drivers of lost liquidity are the Dai bridges to Avalanche, Fantom, and Polygon.

**Crypto-backed Loans**


Since the middle of February, the decrease in crypto loans, most of which is attributable to Nexo taking market share, has been beneficial for Maker's stablecoin liquidity.

**The Curve Situation**


The drop in the use of Dai is primarily attributable to Curve. Only 826M Dai remains deposited into the protocol, down from 2B at the start of the year. Half of this drop, @SebVentures argues, is directly attributable to the ongoing events surrounding the UST stablecoin, which resulted in many Curve users exiting into USDC and Dai (the other two stablecoins in the 3pool).

While rebalancing the 3pool would increase our liquidity buffer, the strong amplification factor may not make it worthwhile.

**Secondary Lending**


Maker has lost about 500M on Compound and 250M on Aave.

@SebVentures concludes his analysis by pointing out that organic demand for Dai, defined as Dai holdings in non-smart-contract addresses, has remained stable.


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**[Introduction to Precession Capital](https://forum.makerdao.com/t/introduction-to-precession-capital/14991)**

Adam Young (@precap) published a post introducing Precession Capital to the community before a formal application is to be submitted in the coming weeks.

The team's own words: "Precession Capital Management LLC is an SEC-regulated, New York-based Investment Adviser specializing in asset-backed and structured credit portfolio management. Our management team has decades of experience structuring, managing, and investing in asset-backed securities and private credit transactions backed by real estate, consumer, and corporate assets."

Precession believes that Maker's present reliance on over-collateralized crypto-assets can be reduced through the onboarding of real-world assets (RWA), which, if properly structured, can help create a stronger and more resilient peg for Dai.

For a deeper dive into Precession Capital, look at [this](https://content.app-sources.com/s/64446662514158053/uploads/Images/PCM_MKR_Arranger_Proposal_May2022_-_EX_TEAM_DRAFT_v2.5-1843139.pdf) more detailed overview.

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‘Yo, do you even signal?’

**[Launch Maker Teleport with 1 basis point fee](https://forum.makerdao.com/t/signal-request-launch-maker-teleport-with-1-basis-point-fee/15109)**

Maker Teleport, known until recently as Maker Wormhole, will launch with two key advantages over other asset bridges:

1. Teleport will allow users to withdraw L2 funds at near-instant speeds by side-stepping the need to wait for fraud-proof.
2. Teleport will burn Dai on the origin chain and mint it on the destination chain without any need for a centralized party.

With these features in place, Maker Teleport is expected to be faster and more secure than an existing competitor; even with a one basis point fee, Teleport is estimated to remain 75-99% cheaper than competing protocols.

While one basis point may seem low, the Strategic Finance Core Unit believes that Teleport will experience strong growth, leading to significant revenues for Maker.

**Teleport Fee Parameters per Domain**

- Set the Arbitrum Wormhole Fee parameter to 1 bp
- Set the Optimism Wormhole Fee parameter to 1 bp

**The vote will run until May 19th, 2022**

<details><summary>Here are the current voting results:</summary></br>


</details></br>

**[Maker Accessing Mortgage loans Through Bacon Protocol](https://forum.makerdao.com/t/signal-request-maker-accessing-mortgage-loans-through-bacon-protocol/15043)**

This proposal from @abdalla requests the onboarding of a Dai Direct Deposit Module (D3M) to create a [Bacon Protocol](https://www.baconcoin.finance/) Dai pool. BaconCoin is a stablecoin backed by US mortgages. Potential benefits include:

- A single onboarding procedure that can scale both the amount of capital used and the number of home loans over time
- Broad distribution of Dai to homeowners in the US
- Higher risk-adjusted yields across a diversified set of home loans
- Maker selects the underwriting criteria to use, allowing for investing in loans that are highly aligned with Maker's vision of funding sustainability initiatives
- Bacon will develop and maintain the D3M integration in line with the CES enablement strategy
- Governance has direct control over the Dai supply added to Bacon through the Debt Ceiling

@abdalla lists smart contract risk as a potential con but also offers two ideas for mitigating risks:

- Whitelisting addresses with deposit functionality can reduce exploit risk (Maker would be the only liquidity provider)
- Credit risk assessment of borrowers can be performed by loan originators using the industry-standard FICO score

**The vote will run until May 19th, 2022**

<details><summary>Here are the current voting results:</summary></br>


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**[Increase the ESM Minimum Threshold](https://forum.makerdao.com/t/signal-request-increase-the-esm-minimum-threshold/15006)**

GovAlpha submitted a Signal Request to gauge support for increasing the minimum threshold to trigger the Emergency Shutdown Module (ESM) from 100,000 MKR to 150,000 MKR.

GovAlpha recommends this adjustment to minimize the threat of a hostile emergency shutdown occurring. With the recent fall in the MKR price, triggering an emergency shutdown has become significantly cheaper based on the current minimum threshold.

The goal is to find the right balance between making it very expensive for a bad actor to acquire or borrow enough MKR to trigger an emergency shutdown without making it overly difficult for a legitimate emergency shutdown to be triggered if necessary (for example, in response to the discovery of a critical bug in the Maker Protocol or the prevention of a malicious governance attack).

**The vote will run until May 20th, 2022**

<details><summary>Here are the current voting results:</summary></br>


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**[Antalpha Institutional Vault](https://forum.makerdao.com/t/signal-request-antalpha-institutional-vault/15030)**

@William_Chiu has compiled recent discussions between the Growth, Risk, and Protocol Engineering Core Unites and [Antalpha](https://www.antalpha.com/) to propose a new institutional vault.

<details><summary>The post outlines both the goals of the proposal and the mechanisms for achieving them.</summary><br>

**Goals**

- Boosting DAI Supply
- Generating greater revenue for MakerDAO and our partners
- Enhancing capital efficiency for our partners
- Longer-term borrowing commitment with a level of borrowing rate-predictability

**Mechanisms**

- Boosting DAI Supply
- Generating greater revenue for MakerDAO and our partners
- Enhancing capital efficiency for our partners
- Longer-term borrowing commitment with a level of borrowing rate-predictability- Origination fee: will be applied to all DAI at the time of minting. This is not restricted and is open to change via Governance (specifically the Parameter Changes Proposal group). Meaning that any partner will have a lead time of 2-3 weeks before any changes are implemented.
- Stability fee: is determined upfront and fixed for a period of time. This fixed rate can be reduced as additional collateral is added.
- Vault starting size: to ensure that such vaults will mint a minimum amount of DAI to gain favorable rates.
Antalpha intends to utilize a DAI loan to strengthen the stable coin portion of the balance sheet to support one of its primary lending and borrowing businesses. Antalpha will take on collateral at a higher level than the level borrowing from DAI to implement proper credit risk management and utilize systems and algorithmic trading to facilitate managing the loans and collateral.

**Proposed Terms**

| Institutional Vault Type | Permissioned ETH and wBTC Vaults (INST-WBTC-5, INST-ETH-5) |
| :---: | :---: |
| Qualifying Vault size: | 200MM |
| Debt Ceiling | 1B, 500MM for ETH, and 500MM for wBTC |
| Origination fee: | 1% of DAI minted |
| Origination fee behavior: | Origination fee is not restricted and can be changed through Governance via a Parameter Changes Proposal. Antalpha has a 2-3 week lead-time to any Origination fee rate change. |
| Origination fee future commitments | Maker and Antalpha will work together to propose reductions to the origination fee if the vault size grows significantly. |
| Stability fee: | WBTC-A stability fee1 - 50bps & ETH-A stability fee2 - 50bps |
| Stability fee3 behavior: | Fixed for six months. After the 200m DAI minted, an additional 100m DAI minted will reduce the stability fee by ten basis points (per vault) to a minimum of Stability fee-30bps for six months. The stability fee reduction will be manual via an executive vote. After six months, open community dialogue facilitated by the Growth CU will determine ongoing stability fees. |
| Collateral Ratio: | 150% |
| Collateral Ratio Behavior: | Failure to maintain 200% CR4 over the majority of seven days will increase the SF to 5% and the LR to 150%. The seven days would be calculated by ensuring that 95% of the OSM updates show that the CR is equal to or greater than 200%. |
| Liquidation Ratio: | 120% |

Here are the current voting results:


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**The vote will run until May 19th, 2022**

**[Restart The Burn](https://forum.makerdao.com/t/signal-request-restart-the-burn-v2/14918)**

@aburban90 presents his request in favor of reactivating the MKR burn. He states that shutting down the burn also shut down our only revenue distribution model and that we have yet to replace it with anything better. These actions have caused some OG stakeholders to lose faith in our ability to deliver. Our community and stakeholders are very important, and there is a possibility we may be risking their confidence in us if we continue not to burn MKR during times of such low prices.

In conclusion, Andrew asks the community whether we want to restart the burn with a reduced lid parameter to mitigate many of the inefficiencies.

**The vote will run until May 14th, 2022**

<details><summary>Here are the current voting results:</summary></br>


</details></br>

**[Deploy the balance sheet in ETH](https://forum.makerdao.com/t/signal-request-deploy-the-balance-sheet-in-eth/14834)**

As expressed in [Towards taking asset risk](https://forum.makerdao.com/t/towards-taking-asset-risks-a-primer/14265) and [A balance sheet approach to an Aggressive Growth Strategy](https://forum.makerdao.com/t/a-balance-sheet-approach-to-executing-an-aggressive-growth-strategy-the-road-to-300m-revenues/14818), ETH seems like a sound investment for MakerDAO. Sebastian from Strategic Finance moves forward on the Balance Sheet Approach toward an Aggressive Growth Strategy by gauging community sentiment on whether we would like to begin working on allocating some of the MakerDAO balance sheets into ETH and/or ETH derivatives. He presents the pros and cons of potentially implementing this investment into ETH:

Pros:

- MakerDAO is using Ethereum as its home base and is therefore linked to the success of ETH.
- ETH is a strategic asset for the operations of the DAO because it pays gas fees for on-chain transactions and oracles.
- Competitors like Celo, TribeDAO, and Angle are holding ETH on their balance sheet, and not holding ETH puts Maker at a distinct competitive disadvantage.
- The upcoming Merge will significantly reduce the issuance of new ETH and create a competitive market for balance sheets with a high degree of exposure to ETH.
- Post-Merge staking fees are currently estimated at 7-11%, doubling current staking yields overnight and making ETH a truly productive asset.

Cons:

- ETH is a volatile asset whose ETH/DAI price can wildly fluctuate and occasionally go down over significant periods
- The Merge and L2 impacts can have unexpected long-term impacts on price.

Sebastian also notes that this Signal Request aims to understand whether there is a community desire to work on this topic. No priority is currently being attributed, and a formal implementation for such actions will have to go through the governance processes.

**The vote will run until May 12th, 2022**

<details><summary>Here are the current voting results:</summary></br>


</details></br>

**[Change `lid` Parameter on the Rate Limiter](https://forum.makerdao.com/t/signal-request-change-lid-parameter-on-the-rate-limiter/14688)**

The passing and introduction of the Rate Limiting Flapper have been successful. However, it only allows to kick off a new auction if it does not increase the total-DAI-currently-in-auction above a certain threshold - the `lid` unless it is at the same value as the `bump.`

Currently, the value for the lid is set to 150k Dai, which can run five flap auctions at once. However, ultraschuppi believes there is no good reason to burn so much MKR and proposes setting the `lid` to the same value as `bump` - 30,000 Dai. Having a 1:1 'lid' to 'bump' ratio will ensure that there is only one parallel flap auction running at any given time.

What is good about this is that in the case of a huge spike on the System Surplus causing spillage to the Surplus Buffer, the time spread of those resulting auctions will be 5x compared to the current setting, thereby producing a more steady burn. However, we will limit the maximum MKR burnt per day from 7.2MM Dai to 1.44MM Dai in sacrifice.

**Vote will run until May 13, 2022.**

<details><summary>Here are the current voting results:</summary></br>


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‘Oh my god, this is taking ages; why can’t things be simple?’

<details><summary><i>Click here for a list of current initiatives:</i></summary><br>

[Maker Operational Manual](https://forum.makerdao.com/t/announcing-maker-operational-manual/12553) - @GovAlpha-Core-Unit release the launch of the Maker Operational Manual and invite all members and Core Units to reach out if they wish to provide any help or documentation to add for the Manual.

[Recognised Delegate Requirements](https://forum.makerdao.com/t/recognised-delegate-requirements/9421) - @LongForWisdom writes a detailed overview of the current requirements and application system to become a delegate in the Maker community. Check out this [thread](https://forum.makerdao.com/search?expanded=true&q=%40LongForWisdom%20%23governance%3Adelegates) for more posts related to delegation.

[Where to Find Opportunities at MakerDAO](https://forum.makerdao.com/t/where-to-find-opportunities-at-makerdao/10076/2) and [Open positions at MakerDAO](https://forum.makerdao.com/t/open-positions-at-makerdao/12197) - Looking for job opportunities at MakerDAO? Perfect! @Davidutro and @manomad set up individual threads containing resources to help find available job listings and hiring practices. *If anybody has additional information on unique hiring practices or job listings, please comment on the thread.*

[:mega: Collateral Calls - Calling all Projects!](https://forum.makerdao.com/t/collateral-calls-calling-all-projects/3715) - @juan sets up a signup thread for projects wishing to present on the bi-weekly collateral call. Know any potential collateral partners that want to present? Refer them here.

[Collateral Status Index](https://forum.makerdao.com/t/collateral-status-index/2231) - Confused about the current status of the various collateral types discussed recently? Check out this post to determine the status and current position within the onboarding process.

[Weekly MIPs Updates](https://forum.makerdao.com/tag/mips-update) - @blimpa brings the latest updates in MIPs.

[The Official Welcome Thread](https://forum.makerdao.com/t/the-official-welcome-thread/771/4) - A welcome and introductions thread. Not strictly governance, but if anyone new or old wants to introduce themselves, now is your chance!

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‘Oh %#\$?, we need a doodad, and we need it now.’

We could always use help reviewing [MIPs in the Request for Comment phase](https://forum.makerdao.com/tag/rfc).

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*Please, check out the [Forum at a Glance feedback survey](https://survey.sogosurvey.com/r/qTb1p7) to help us improve and scale these reviews - It will be fun, I promise.*

Credit: @nothsa and @Artem_Gordon