---
# System prepended metadata

title: Maker Relay 07
tags: [Maker Relay]

---

---
tags: Maker Relay 
---
# Maker Relay 07

![](https://i.imgur.com/eLoHg2i.png)

_Hey everyone, thanks for checking out Maker Relay!_

Whether you hold Maker (MKR) or DAI, own a vault, or want to get more involved in MakerDAO governance, this is your one-stop-shop for updates on the MakerDAO ecosystem. 

## Votes

**Learn more about Governance in Community Development's [Voter Onboarding Guide](https://community-development.makerdao.com/onboarding/voter-onboarding)!**

### Executive Votes

- Passed - [Fix the WBTC-A debt ceiling](https://mkrgov.science/executive/0xca3b2e6006c996ee361b6ea6505226a463390b52)
    - Quick fix to debt ceiling math in regular Executive Proposal. [Find the discussion here.](https://forum.makerdao.com/t/3603)

- Passed - [Urgent configuration change to the ETH-A lump size, increase the WBTC-A debt ceiling](https://mkrgov.science/executive/0xd17abf984740145db4b3d61559eebe2170a3d6da)
    - [Decrease the ETH-A lump parameter from 500 to 100 ETH.](https://forum.makerdao.com/t/3586)
    - [Increase the WBTC-A debt ceiling from 40 to 80 million](https://forum.makerdao.com/t/3519)

### Governance Polls

#### Meta Parameter Polls

| Poll Name  | Vote                                                                                              | Discussion |
| ---------- | ------------------------------------------------------------------------------------------------- | ---------- |
| Base Rate Adjustment | [Vote](https://vote.makerdao.com/polling-proposal/qmeftwttrdrtiemdoyrmtjnssmlnbdsag2ryxjoycb9l47) |            |

#### System Parameters

| Poll Name  | Vote                                                                                              | Discussion |
| ---------- | ------------------------------------------------------------------------------------------------- | ---------- |
| Adjust the BAT-A Risk Premium | [Vote](https://vote.makerdao.com/polling-proposal/qmf3zsmxsyjvea4hs68trto4cj5hrav7gdhfbcjlzc1dcl) | [Signal Request](https://forum.makerdao.com/t/3334) |
| Adjust the Dust Parameter | [Vote](https://vote.makerdao.com/polling-proposal/qmzrkwjivbhr3rpdiionp81xtekbqpdjbak8zkkqjhcsxm) | [Signal Request](https://forum.makerdao.com/t/3445) | 
| Increase the Surplus Auction Buffer | [Vote](https://vote.makerdao.com/polling-proposal/qmneswmjkygu4akcns68hbmk2l6jgppbqszt2jnlk7tdgy) | [Signal Request](https://forum.makerdao.com/t/3316) |

#### Maker Improvement Proposal Polling

| Sub Proposal | Vote                                                                                         | Discussion                                                                     |
| ---------- | ------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ |
| Liquidations 1.2 Upgrade | [Vote](https://vote.makerdao.com/polling-proposal/qmzaapfn5wxrqpk8pej9bepw1gxufmmndw96kgeufomjvd) | [Proposal](https://forum.makerdao.com/t/liquidations-system-1-2-upgrade-timeline/3592) |
| MIP13c3-SP1 - Declaration of Intent (Forward Guidance) | [Vote](https://vote.makerdao.com/polling-proposal/qmbonnxcyib3qprnzydswgbx7vzvrfktpfab9sdmabbjdh) | [Proposal](https://forum.makerdao.com/t/3130) |
| MIP0c13-SP1 - Subproposal for Core Personnel Offboarding | [Vote](https://vote.makerdao.com/polling-proposal/qmrwmewc9wbwutruyn8jv3eawh6ejpbkfeoccb5joogyay) | [Proposal](https://forum.makerdao.com/t/3508) |
| MIP12c2-SP4 - LRC Collateral Onboarding | [Vote](https://vote.makerdao.com/polling-proposal/qmusbw4plwfpddrm8c26dq3xq8xnbwpk6gjpenakoqyg33) | [Proposal](https://forum.makerdao.com/t/3558) |
| MIP10c15-SP6 - Appoint MyCrypto as an Oracle Light Feed | [Vote](https://vote.makerdao.com/polling-proposal/qmryo2jjp24wp5hg7iourzpszbkqoygrabouxgtbruwsyv) | [Proposal](https://forum.makerdao.com/t/3383/2) |

#### Open Signal Requests

- [Should we change the RPs for various collateral types?](https://forum.makerdao.com/t/signal-request-should-we-change-the-rps-for-various-collateral-types/3484)
- [Add a Dai flash mint module](https://forum.makerdao.com/t/signal-request-add-a-dai-flash-mint-module/3598)



### MIPs Updates
The Maker Improvement Proposal (MIPs) Framework provides a clear process for Maker governance to change the Protocol as needed.

- [Weekly MIPs Update #11 (Date)](https://forum.makerdao.com/t/weekly-mips-update-11/3618)

Proposals in the Request-For-Comments phase include:

- [MIP20: Target Price Adjustment Module-(Vox)](https://forum.makerdao.com/t/mip20-target-price-adjustment-module-vox/3196/62)
- [MIP17: Weekly Actual Debt Ceiling Adjustments](https://forum.makerdao.com/t/mip17-weekly-actual-debt-ceiling-and-actual-risk-premium-adjustments/3021/35)
- [MIP15: Dark Spell Mechanism](https://forum.makerdao.com/t/mip15-dark-spell-mechanism/2578/4)
    - Feedback ends in August, eligible for the September governance cycle. 
- [MIP14: Protocol Dai Transfer](https://forum.makerdao.com/t/mip14-protocol-dai-transfer/2462/38)
    - Looking for a new author from the community.

**Learn more about [Maker Improvement Proposals (MIPs)](https://forum.makerdao.com/c/MIPs/14) in the Maker Forum**

### Governance Cycle

The August Governance cycle has begun. See the vote table above for the inclusion polls.

## Domain Teams

### Smart Contracts

- See [Mariano's elaboration on the Saturday executive](https://forum.makerdao.com/t/bug-in-2020-08-07-executive-spell-contract/3603/5). 
    - Read more about the math in [MakerDAO's documentation](https://docs.makerdao.com/smart-contract-modules/proxy-module/dsr-manager-detailed-documentation#contract-details).

## Current Events 


### Vault Compensation Update

[Vault Compensation V2](https://forum.makerdao.com/t/vault-compensation-plan-v2/3584)

This update (posted Aug 7 2020), breaks down the updates in the Compensation plan after the failure of the vote from July 13th-16th. New polls will be structured to differentiate between MKR voters opposed to a specific plan, or compensation in general.

This also lays out financial plans for funding and discusses some operating expenses.

The compensation that will be distrubuted to vaults will be in MKR instead of DAI. These main updates came with some goals & principles as well:

> "Completeness..Fairness..Consensus..Simplicity..Economic Soundness.." 

### Liquidations System 1.2 Upgrade

[Liquidations System 1.2 Upgrade](https://forum.makerdao.com/t/liquidations-system-1-2-upgrade-timeline/3592) 

This post contains technical details and a timeline for the poll/executive vote for this potential "simple system update."

>"With the amount of Dai outstanding in the Maker Protocol, if there were a price crash, there would not be enough liquidity available to manage a large amount of auctions properly. In this case, the circuit breaker is not the right solution as it is subject to the system delay in addition to other complications. The Liquidations 1.2 Upgrade will allow Maker Governance to control the total amount of Dai that can be in auction at any one time."

### Peg Stabilization Module (PSM)

Discussion around the PSM continues. Please see last week's [Maker Forum Deep Dai-ve](https://forum.makerdao.com/t/maker-relay-ep-6/3517) for background.

[Thoughts On The Peg, And A Fundamental Problem With The Current Stability Fee Design](https://www.reddit.com/r/MakerDAO/comments/i3dac7/thoughts_on_the_peg_and_a_fundamental_problem/)

[raiden4](https://www.reddit.com/user/raiden4/) created this Reddit post cited by [FourthStreet](https://forum.makerdao.com/u/FourthStreet) in the [Maker Forum](https://forum.makerdao.com/t/subreddit-repost-reducing-dai-redemption-value-to-fix-peg/3525), weighing in on how to fix the peg:
> 
> "...the more immediately useful DAI is, the less Maker (and MKR holders) will benefit since the stability fees will tend to go down...
>
>Assuming we don’t want to hurt DAI usability (e.g by introducing negative rates or demurrage) and assuming the stability fees cannot be lowered any more...the only other piece in the equation is the value of redeemable collateral. If we make it slightly less than $1 (at global settlement), we can lower the price TO $1...."

[How much demand is there for DAI?](https://forum.makerdao.com/t/how-much-demand-is-there-for-dai/3535)
>[@OliverNChalk](https://forum.makerdao.com/u/OliverNChalk) asks:
>
>"How much demand do they see realistically?
>
>Do they envision a scenario where supply manages to outpace this demand (only using 0% SF and not introducing negative rates?"

### Lowering the Base Rate

[Interim Forward Guidance for Base Rate](https://forum.makerdao.com/t/interim-forward-guidance-for-base-rate/3518)

>"With the base rate now at -4%, all collateral asset stability fees (except MANA) are at 0%. Despite this accommodative monetary policy, we have yet to see much improvement in the peg or additional utilization of available debt ceilings."

>[@monet-supply](https://forum.makerdao.com/u/monet-supply) turned a chat into a forum post, laying out some of the pros and cons of further reducing the base rate. Relating to [@hexonaut](https://forum.makerdao.com/u/hexonaut)'s post from last week;

Find more discussion on this topic in [We Should be Lowering the Base Rate.](https://forum.makerdao.com/t/we-should-be-lowering-the-base-rate/3439/15)

### Real World Assets in the Maker Protocol

[Initial Thoughts and Questions for Including Real World Assets in the Maker Protocol](https://forum.makerdao.com/t/initial-thoughts-and-questions-for-including-real-world-assets-in-the-maker-protocol/3511) 

[g_dip](https://forum.makerdao.com/u/g_dip) lays out an initial dive into this subject, elaborating on the point that; 

>"Conceptually there are two ways two think of the structuring process that allows a token to represent a claim on an asset in the Maker Protocol:

> 1. Tokenize a claim on a particular underlying asset itself
> 2. Create and tokenize a debt instrument which represents a claim on proceeds of the underlying asset in the event of a liquidation"

[g_dip](https://forum.makerdao.com/u/g_dip) goes on to ask questions about the benefits, potential risks and outcomes, and general opinions on the subject. 

In '[How MakerDAO can be a competitive lender in the Credit Tenant Lease marketplace](https://forum.makerdao.com/t/how-makerdao-can-be-a-competitive-lender-in-the-credit-tenant-lease-marketplace/3521),' [mrabino1](https://forum.makerdao.com/u/mrabino1) begins a discussion on how it may be sensible for MKR to be setting up a revolving credit facility for a Lender. 

The comments are full of more useful information; answering initial questions as well as providing this [diagram](https://forum.makerdao.com/t/how-makerdao-can-be-a-competitive-lender-in-the-credit-tenant-lease-marketplace/3521/8) of the proposed structure for this general idea. 

## State of the Peg 8-10-2020

![Peg](https://i.imgur.com/RDhmo7n.png)

- DAI peg still hovering above peg at ~1.016.
- For an in depth breakdown on the Dai price premium check out [Governance and Risk ep 104](https://youtu.be/ZLgbKyTHPY8?t=1826).

![Dai Supply](https://i.imgur.com/7fypvgt.png)

- Above 400 million Dai with more room in the ETH, BAT, USDC, and WBTC Debt Ceilings.

![VWAP](https://i.imgur.com/It9tl7E.png)

- Volume at around $86 million this last week. 
- Average VWAP (Volume-Weighted-Average-Price) places Dai at $1.016

![ETH Vaults collateralization ratio](https://i.imgur.com/JSstHoM.png)

- ETH vaults collateralization ratio distributing towards higher collateralization bands like 300-350%. The majority of the debt outstanding is still in 150-300% buckets.

![Large positions in safer collateralization](https://i.imgur.com/f6hIIII.png)

- Some of the larger vaults have pushed the 300 bucket up significantly.

![Liquidation wall at $285](https://i.imgur.com/urLghRt.png)

- The first liquidation wall sits at $285 for possible liquidations of 32 million Dai.

![Liquidation wall $242.9](https://i.imgur.com/Qg8SGlD.png)

- The second significant liquidation wall is at $242.8 ETH, a 39% drop would coincide with 66 million Dai getting liquidated.

![WBTC Collateralization much riskier](https://i.imgur.com/n4PhD4w.png)

- WBTC Collateralization much riskier with the majority in the 150-200% bucket.

![WBTC Liquidation Wall at $9810](https://i.imgur.com/SrtT4xM.png)

- An 18% price drop would coincide with 46 million Dai getting liquidated.

https://daistats.com/#/ | http://dai.descipher.io/ 

## Community

### Articles and Thought Pieces

* [Maker Governance Review: July 2020](https://blog.makerdao.com/maker-governance-review-july-2020/)
* [Ethereum Emission Debate Sparked by MakerDao Developer Marc-André Dumas’s Script](https://maxbit.cc/ethereum-emission-debate-sparked-by-makerdao-developer-marc-andre-dumass-script/)
* [Really Awesome Analytics Dashboard for the Maker Protocol](https://www.reddit.com/r/MakerDAO/comments/i3nqgi/really_awesome_analytics_dashboard_for_the_maker/)

### Videos and Podcasts

* [FriDAI Brunch #3 - UX and Design As Key Tools to Foster DeFi](https://www.crowdcast.io/e/fridai-brunch-3) (Replay)

### Maker Forum Deep Dai-ve

* [Bidding costs for liquidation auctions](https://forum.makerdao.com/t/bidding-costs-for-liquidation-auctions/3577)

[@kaciloy](https://forum.makerdao.com/u/kaciloy) opens a dialogue on the costs of participating as a Keeper in the auction process and the relationship between Keepers and fluidity of liquidation auctions. 

* [Guide/Template for SC Domain Community Assessments](https://forum.makerdao.com/t/guide-template-for-sc-domain-community-assessments/3588)

[befitsandpiper](https://forum.makerdao.com/u/befitsandpiper) put together this how-to guide for simplifying the process of applying for SC domain community assessment based on [this template](https://hackmd.io/@wvj58ecDT7uiW4OFhwy4DQ/ryl2533gv). 

### Twitter

* [Tweet of the Week](https://twitter.com/aantonop/status/1292877311570857990?s=20)

## Meetings and Events

### MakerDAO Open Calls

#### Community Call 

- Tuesdays at 16:00 UTC | [Crowdcast](https://www.crowdcast.io/e/the-makerdao-community-8/register)

#### Community Collateral Onboarding

- Bi-weekly Wednesdays at 17:00 UTC | [Agenda](https://forum.makerdao.com/t/agenda-discussion-collateral-onboarding-call-5-wednesday-august-12-17-00-utc/3623)
    -  Message [#governance-and-risk](https://chat.makerdao.com/channel/governance-and-risk) or [#general](https://chat.makerdao.com/channel/general) for Admission
    - [Introduction](https://forum.makerdao.com/t/collateral-onboarding-call-bi-weekly-on-wednesday-at-17-00-utc-19-00-cet-10am-pst/3614)


#### Governance & Risk

- Thursdays at 16:00 UTC | [Zoom](https://zoom.us/j/697074715) 
    - Message [#governance-and-risk](https://chat.makerdao.com/channel/governance-and-risk) for Admission
    - [Agenda](https://forum.makerdao.com/t/agenda-discussion-scientific-governance-and-risk-105-thursday-august-13-4-00-pm-utc/3570) | [Dial-in call link](https://zoom.us/u/acRbIMDvK) | [Calendar](https://calendar.google.com/calendar/embed?src=makerdao.com_3efhm2ghipksegl009ktniomdk@group.calendar.google.com&ctz=America/Los_Angeles)
    - [Archives](https://community-development.makerdao.com/governance/governance-and-risk-meetings)
    - [Contributing](https://forum.makerdao.com/c/governance/gnr/8)

### Community Events

- Aug 10 - Aug 18 [Southeast Asia DeFi Week #2 | Welcome to the Agricultural Age of Crypto](https://www.eventbrite.com/e/southeast-asia-defi-week-2-welcome-to-the-agricultural-age-of-crypto-tickets-115667541731)
- Aug 11 [Blockchain Jobs: HR Experts Share Their Advice [Future Of Blockchain Space]](https://www.eventbrite.com/e/blockchain-jobs-hr-experts-share-their-advice-future-of-blockchain-space-tickets-116037317741)
- Aug 14 [LongHash Hatch Batch 4 Demo Day](https://www.crowdcast.io/e/demoday)
- Aug 18 [The MakerDAO Community Call: Brian McMichael Introduction to the Ilk-Registry](https://www.crowdcast.io/e/the-makerdao-community-7/register)

### Hackathons

- July 8 - Sept 8 [Matic Layer 2 Security Hackathon](https://gitcoin.co/issue/maticnetwork/matic-bounties/14/100023264)
- Aug 19 - Sept 30 [Apollo](https://gitcoin.co/hackathon/filecoin/?tab=hackathon:30)
- Oct 2-20 - [ETHOnline](https://www.ethonline.org/)

## Reference Links

Discuss and debate Maker governance in the [Forum](https://forum.makerdao.com/) and over [Maker Chat](https://chat.makerdao.com/).

Propose technical changes, poll, and vote in the [Governance Portal](https://makerdao.com/en/governance).

Learn more about the Maker protocol in our [Documentation](https://docs.makerdao.com/).

### Have Feedback? 

We value your input! Post in the [forum](https://forum.makerdao.com/), take our [survey](https://forms.gle/Z2QAgywU2Sesm7Vy6), or join us in the [Community-Development](https://chat.makerdao.com/channel/community-development) channel to let us know what you want to see.

*Disclaimer: This update is assembled by a group of contributing members in the MakerDAO community. This does and should not serve as financial advice or an inducement to vote in any specific way. This update is purely for informative and for communications purposes only.*