---
# System prepended metadata

title: 'Weekly Relay: May 3rd - 9th, 2022'
tags: [Weekly Relay]

---

---
tags: Weekly Relay
---

# Weekly Relay: May 3rd - 9th, 2022

![](https://i.imgur.com/HwFQyFn.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._

###### [Online PDF Version](https://pdfhost.io/v/01niyR0kl_Weekly_Relay_May_3_9_2022) | Show some love to our [Medium account](https://medium.com/@MkrGovComms) :heart:

**We have some new ideas for improvement and would appreciate your [feedback](https://forms.gle/nPfNEvrCog9gSF768) to help make the Weekly Relay a more enjoyable publication.**

---
### Check this out! ![](https://i.imgur.com/lw5SOBV.gif)

SES and Julian are researching challenges and opportunities for Maker involving environmental, social, and corporate governance (ESG). They are currently asking the community's opinion to help identify topics with potential business relevance. Check out the survey [here.](https://docs.google.com/forms/d/e/1FAIpQLSc0MsZv8qFQfoJh5w15atJHfC-UknCNChoEP-jU5UfDXMVewQ/viewform?usp=sf_link)

For more information:

https://youtu.be/V5bliF28cbM?t=2726

## ![Current Events](https://i.imgur.com/wwIg07f.gif)

**[Improved Governance Cycle](https://forum.makerdao.com/t/governance-cadence-improvement/14972)**

<details><summary>The Protocol Engineering Core Unit has announced that executive proposals will be posted weekly on Wednesdays instead of Fridays. Increasing the time between polling and the executive will give development teams more time to safely deploy any contracts that introduce protocol-level changes.</summary><br>

Previously, polls have been made available on Mondays to finish on Thursday for deployment on Friday.

![](https://i.imgur.com/IOSqYD4.png)

The limited-time available to deploy approved contracts led to several impactful issues, including:

* It was not possible to adequately test spells on the Goerli testnet
* Working on two spells in parallel (Goerli and mainnet) is not a best practice
* It did not provide enough time to review and accept pull requests from other engineering teams

Moving the deployment of spells to Wednesday enables our engineers to address these issues and ensure a safer, more thorough development and deployment process.

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

In more detail:

-   GovAlpha will continue to launch polls as they do today, starting on Mondays and ending on Thursdays.

At the same time:

-   Protocol Engineering will have begun Goerli spell preparation at the beginning of the week, working with CES, Oracles, and others to merge pull requests into the Goerli spell.
-   Protocol Engineering will update the Goerli spell with the spell copy provided by GovAlpha by Friday.

The following week:

-   Protocol Engineering will deploy the Goerli spell on Monday before starting the mainnet spell targeting deployment on Tuesday.
-   Protocol Engineering will inform GovAlpha of the completed spell, who will then post it on the Governance Portal.

The next executive vote will take place on Wednesday, May 11th, instead of Friday, May 6th.</details></br>

## ![This Week in Governance](https://i.imgur.com/TZ3kzMK.gif)

### Maker Improvement Proposals (MIPs)

[Weekly MIPs Update #86](https://forum.makerdao.com/t/weekly-mips-update-86-may-9-2022/15058) by @blimpa

![](https://i.imgur.com/eCW8b3C.png)

- May’s Formal Submission Window closed last Thursday; five proposals entered it and are now on-chain as Ratification Polls. These will run for two weeks and close on May 23.
- The latest possible date for posting proposals* that will enter June’s Governance Cycle is Wednesday 11.
- Ratification Polls will close in two weeks, on May 23.
- June’s Formal Submission Window opens on June 6.

RFC and FS Dates for reference and existing proposals can be seen [on this proposal tracker](https://docs.google.com/spreadsheets/d/1OHZa-f4C2Z8PteZBb1Mfiz-MJn5Ky_PM15mM1QLgIRY/).\
If you have any questions about the voting process at MakerDAO, the [Practical Guide to Voting](https://manual.makerdao.com/governance/voting-in-makerdao/practical-guide-voting) will be useful.

### Executive Vote(s)

There was no executive last week; all future executives will now be posted on Wednesdays as part of the [new and improved Governance Cycle.](https://forum.makerdao.com/t/governance-cadence-improvement/14972)

### Active Governance Polls

*Please, check out the feedback survey mentioned at the head of this publication to help us improve Active Governance Polls.*

There are five active polls:

| Poll Name | Discussion |
| :-------: | :--------: |
| [Monetalis Clydesdale, Liquid Bond Strategy & Execution (MIP65)](https://vote.makerdao.com/polling/QmXHM6us#poll-detail) | [Discussion](https://forum.makerdao.com/t/mip40c3-sp62-modify-core-unit-budget-com-001/13724) |
| [Monetalis Lusitano, UK Green Economy SME Wholesale Lending (MIP68)](https://vote.makerdao.com/polling/QmS7UyQT#poll-detail) | [Discussion](https://forum.makerdao.com/t/mip68-monetalis-lusitano-uk-green-economy-sme-wholesale-lending/13789) |
| [L2-to-L1 Fast Withdrawals (MIP69)](https://vote.makerdao.com/polling/QmWZvSpa#poll-detail) | [Discussion](https://forum.makerdao.com/t/mip69-l2-to-l1-fast-withdrawals/14041) |
| [MIP40 Budget Process Amendment (MIP4c2-SP19)](https://vote.makerdao.com/polling/QmXVjbWG#poll-detail) | [Discussion](https://forum.makerdao.com/t/mip4c2-sp19-mip40-budget-process-amendment/14250) |
| [Strategic Happiness (SH-001) Core Unit Budget Modification (MIP40c3-SP67)](https://vote.makerdao.com/polling/QmQkxx16#poll-detail) | [Discussion](https://forum.makerdao.com/t/mip40c3-sp67-modify-core-unit-budget-strategic-happiness-sh-001/13805) |

*Check out [May 2nd's](https://forum.makerdao.com/t/weekly-relay-april-26-may-2-2022/14939) issue of Weekly Relay for more information on the most recently concluded polls.* 

### Community Greenlight Polls

*Please, check out the feedback survey mentioned at the head of this publication to help us improve Community Greenlight Polls.*

There are two active community greenlight polls for the week of April 12 - April 18, 2022.

| Greenlight Poll | Current Vote Breakdown | Begin Date | End Date |
| :-------------: | :--------------------: | :--------: | :------: |
| [ATDC (ATD Combustors)](https://vote.makerdao.com/polling/QmRH6Bf6#poll-detail) | ![](https://i.imgur.com/fjDzNXs.png) | May 2nd, 2022 at 16:00 UTC | May 16th, 2022 at 16:00 UTC |
| [IPCL (India Power Green Bonds)](https://vote.makerdao.com/polling/QmUQ7VDA#poll-detail) | ![](https://i.imgur.com/bqPaNdS.png) | May 2nd, 2022 at 16:00 UTC | May 16th, 2022 at 16:00 UTC |

_Check out an "at-a-glance" view of the current Vault types and their parameters on [MakerBurn.](https://makerburn.com/#/rundown)_

### Active Signal Requests

**[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>

![](https://i.imgur.com/WYWdMX4.png)
    
</details></br>

**[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>

![](https://i.imgur.com/I0bQryK.png)
    
</details></br>

**[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.

The post outlines both the goals of the proposal and the mechanisms for achieving them.

**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% |

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

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

![](https://i.imgur.com/NX9UUjD.png)
    
</details></br>

**[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>

![](https://i.imgur.com/WRJX0BC.png)
    
</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:

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>

![](https://i.imgur.com/6n4IrVI.png)

</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, but it only allows to kick off a new auction if the new auction does not increase the total-DAI-currently-in-auction above a certain threshold - the `lid` unless it's 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's 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>
    
![](https://i.imgur.com/5jgaFM1.png)

</details></br>

## ![Community Deep Daive](https://i.imgur.com/B2Q1EwX.gif)

### Tweet of the Week
###### For those who need some joy in times of market uncertainty

https://twitter.com/fhomoney/status/1522237761331286025

### In The News :rolled_up_newspaper: 

[Oasis.app Launches Stop-Loss Protection](https://blog.oasis.app/oasis-app-launches-stop-loss-protection/)

![](https://i.imgur.com/WlZaC75.png)

A new feature is available for Maker vaults on Oasis.app called Stop-Loss Protection. 

Stop-Loss Protection will ensure that a vault will close out automatically if the collateralization ratio hits a preset threshold and protect against liquidation.

Setting it up has no additional cost except the gas fees for the transaction.
However, it is impossible to know the gas and swap costs at the moment of the transaction. The value shown before execution is an approximate value that may slightly differ from the actual value.

To learn how to set up a Stop-Loss Protection or how it works, check out their [blog.](https://blog.oasis.app/oasis-app-launches-stop-loss-protection/)

## ![Meetings and Events](https://i.imgur.com/UCFtV9r.gif)

Last Week's Call Recordings

- Governance & Risk: Episode 189 | [Video](https://www.youtube.com/watch?v=ZJSmzCTSbsA) | [Forum](https://forum.makerdao.com/t/governance-and-risk-189-thursday-may-05-17-00-utc/14965)

#### Governance & Risk

- [Join Link](https://zoom.us/j/697074715) | [Agenda](https://forum.makerdao.com/c/governance/gnr/8) - Thursdays at 17:00 UTC 

</details>

<details><summary><b>Core Unit Office Hours</b></summary><br>

- [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

</details>

## ⚓ Useful Links

<details><summary>Open</summary><br>

[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 auction 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.

</details>

###  🎙️ 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

@nothsa and @Artem_Gordon
