--- tags: Weekly Relay --- # Weekly Relay | December 10 - 17, 2022 ![](https://i.imgur.com/UoCEvhe.jpg) _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._ Authors: @alec, @Artem_Gordon, and @Sol_Invictus <small>[Online PDF version]()</small> --- ## Happy Holidays and Farewell :hearts: First and foremost, we wish everyone a very merry and happy holiday season. Hopefully, you all had a fantastic year filled with knowledge, excitement, and experience. The most important thing we hope for next year is that MakerDAO and its community will be able to realize the Endgame Phase and that Santa Claus will bring a bull market sooner rather than later. :santa: *Now for the sad news:* Since GovComms has been offboarded, these publications have come to an unfortunate end. It was a pleasure to have the opportunity to provide our readers with weekly recaps, event summaries, and videos of forum sessions. However, do not fret just yet! Wipe those tears away because we do not wish this opportunity to be wasted. In accordance with the Endgame transition, I (Artem Gordon) am in the process of reorganizing a new and improved publication service. While I do not want to reveal any surprises, expect the Relay and Forum Recaps to come back bigger and better than ever (along with a few new twists and unique improvements). Watch for the official announcement and discussion posts coming soon after the ball drops. ## 🍿 **CURRENT EVENTS** ### [**Open Decentralized Voter Committee -- "The Endgame Constitution"**](https://www.youtube.com/watch?v=hJSqYTzensQ) @Rune breaks down the latest iteration of the Endgame Roadmap, listed below. It's emphasized that the majority of these lack tangible content. This Open DVC, instead, served to introduce these terms as well as outline their relation to the ***Endgame Constitution***. <br> ![](https://i.imgur.com/fYmYpIN.png) <br> <small>**Summary of intentions:**</small> Rune feels we need to "rethink" what we've, to date, been calling the *Endgame Plan*. Strip away the interlacing complexity of each moving piece, and "what's left is the Endgame Constitution." This *Constitution* serves to elevate the Endgame's many pieces from abstract concepts to concrete plans of action. In other words, it encapsulates the entirety of the *Endgame Plan*, including the interactions between each element. > "The whole *Plan*, then, naturally grows from the Consitution. Like a single MIP that implements everything, it's fundamentally responsible for implementing these mechanisms that self-reinforce and resist change." <small>**Summary of discussed terms:**</small> The goal is a document akin to the U.S. Constitution, complete with an artistic flourish of the era, lending an air of professionalism that's missed in modern implementations. * The *Principles of the Endgame Constitution* are ideals, set in stone, "that each voter must understand to [better utilize] the mechanisms of the Constitution." > "If you have no voters that understand, follow, and act based on these guiding principles -- the Endgame fails. However, the system only needs a few to maintain its effectiveness. ...These voters assure the system remains stable in the face of any of the [many] risks that we now know exist." * *Preserving the purpose and meta of Maker and DAO* This step requires MKR holders that act based on something greater than simple personal gain. This is a natural extension of the above "principles" dictating the DAO's overarching direction. These initial items dictate the "rules of operation" for proceeding terms. For example, the DAOs *principles* and *purpose* drive the function of its metaDAOs. Per Rune, the most critical of these comes in [**an easy-to-use voting front-end**](https://www.youtube.com/watch?v=hJSqYTzensQ&t=1370s). This front end comes equipped with a Delegate ranking system based on "popularity" (i.e., vote weight). This UI requires consistent engagement to retain this top slot and the visibility that comes with it. In that sense, this UI "self-polices" participation and fits on the delegate end while streamlining the selection process on the user side. <small>**The role of SubDAOs summarized:**</small> While these units may engage in independent projects, *Governance SubDAOs* assume the de-facto title of *Mandated Actor*. As in the current system, these protocol actors can be "penalized for any failings to follow the ratified *Constitution*." > "[The system] assumes everyone to be corrupt, as very few MKR holders are actual semi-altruists." As such, this penalization system must be clearly defined at each step, leaving no doubt about the consequences of a particular transgression. The goal is to comprehensively codify the process, allowing the protocol to wage these penalties automatically. This better aligns with the decentralized ethos and allows the workforce to fully anonymize over time. <small>**Timeline summarized:**</small> * The current task list is filled with unknowns. *By the end of Q1*, these unknowns will be fully explored, dissected, and quantified. * Q2, we'll see these processes formally ratified, with all DVC Subcommittee calls operating as defined in this *Constitution*. * After further, now informed, updates to the *Constitution, a Q3 launch of SubDAOs is expected*. * In Q4, everything learned and implemented will be ossified or fixed, and the DAO can begin to fully operate under the rules of engagement formalized in the *Constitution*. <small>**Community Discussion:**</small> While community conversation is confined and brief, some dissent was expressed. @LongForWisdom questioned the scope and complexity of an all-encompassing *Constitution* and offered an alternative structure instead. > "The aim of a constitution in my mind is to be a short, easily understandable document that explains what Maker is trying to achieve, why, and how it plans to do so at a high level." *This proposed structure:* * Includes articles 1-3 in your division above. * Defines enshrined legislation (and the requirements for changing it) * Includes a list of enshrined legislation. * Defines mutable legislation (and the requirements for changing it) * Includes a list of mutable legislation. * A clear statement that the constitution itself is enshrined, meaning no one can add additional mutable legislation without clearing the enshrined modification requirement. * A set of enshrined legislation as defined in the constitution but not part of it. * These are MIP-like documents that cover what you’ve currently defined as articles 4-10. * I’d recommend that they be MIPs and that you re-purpose the MIPs framework to host these and nothing else. But MIP-like is fine. * A set of mutable legislation (i.e., the scope contents). > "This keeps complex information separated into digestible chunks and allows us to go into the required level of detail without polluting the constitution with the sort of legal crap you need to constrain the actions of profit-seeking entities effectively." *A link to the complete video discussion can be found [**here**](https://youtu.be/hJSqYTzensQ), or to read the accompanying post in its entirety -- [**click here**](https://forum.makerdao.com/t/todays-endgame-call-2pm-et-8pm-cet-overview-of-the-endgame-constitution/19168).* ### An Introduction to Now Polling MIPs ***Top Level*** #### [**MIP90: Liquid AAA Strictured Credit & Money Market Fund**](https://forum.makerdao.com/t/mip90-liquid-aaa-structured-credit-money-market-fund/18428) Under this MIP, a 600M DAI vault would be opened to acquire USDC via the PSM to purchase diversified AAA -- or equivalent -- investment vehicles. * At the end of each quarter, *collected interest* would be remitted to the DAO and used to bolster the Surplus Buffer. * *Principal proceeds*, or the sum of all the funds made available to the issuer, excluding accrued interest, would be reinvested until "liquidation is triggered through governance." #### [**MIP92: Onboard PSM USDC to Yearn to Earn Yield**](https://forum.makerdao.com/t/mip92-onboard-psm-usdc-to-yearn-to-earn-yield/18971) @corn proposes a USD 100M onboarding of PSM USDC to an entirely new and bespoke non-custodial Yearn vault to be explicitly built for Maker. MIP92 proposes an on-chain, DeFi-native route to earn a yield on USDC currently held in the PSM. Yearn v2 vaults are battle-tested, handling ATHs of USD 6.4B. Since then, they've successfully unwound USD 6B with no loss in funds by promoting safety, security, and risk management. At the time of posting, Yearn provided a [**risk-adjusted 2.16% APY**](https://staging.yearn.vision/d/apkUMx6nz/vault-overview?orgId=1&from=1636307831998&to=1668464540570&var-networks=ETH&var-exp=false&var-vaults=yvUSDC%200.4.3&var-address=0xa354F35829Ae975e850e23e9615b11Da1B3dC4DE&var-version=v2) average on its USDC vault implementation. Yearn has also built and contributed to the creation and development of products in services such as [yAcademy,](https://yacademy.dev/auditing-services/) [Coordinape,](https://coordinape.com/) [ApeWorx,](https://www.apeworx.io/) [ERC4626,](https://www.coindesk.com/layer2/2022/04/08/defi-giant-yearn-leads-the-way-on-erc-4626-token-standard-adoption/) and more. Yearn wants to utilize the current bear market to build a long-term relationship with Maker through a *Strategy* plan that covers everything from due diligence to production: ![](https://i.imgur.com/8rTIWC0.png) The Yearn risk structure measures eight key frameworks, which are live and can be viewed at [yearn.watch/risk](https://yearn.watch/risk). ![](https://i.imgur.com/VRyQvH7.png) Yearn takes a 20% performance fee to cover the costs for monitoring, alerting, troubleshooting, and other processes. However, there are no management or withdrawal fees at all. ![](https://i.imgur.com/x5MxvU6.png) The proposed bespoke Maker vault will be under the sole control of Maker governance. If the proposal passes, Yearn will follow this vault cycle: ![](https://i.imgur.com/sGPvxyA.png) Additionally, the team is excited to work on a D3M implementation and will follow the same vault cycle strategy whenever to push forward the initiative. *Watch the entire presentation [here](https://youtu.be/ZbxvQAxvuBc) on the Know Your MIP call hosted by Retro and Juan.* #### [**MIP13c3-SP13: Declaration of Intent to Develop a Comprehensive On-chain Monitoring Solution for RWA Vaults**](https://forum.makerdao.com/t/mip13c3-sp13-declaration-of-intent-to-develop-a-comprehensive-on-chain-monitoring-solution-for-rwa-vaults/19095) Proposed by Recognized Delegates @rspa and @twblack88, our newest MIP calls for the development of an on-chain monitoring system for RWA Vaults. <small>**Summary of context and motivations:**</small> >"Current RWA monitoring is lagging behind as much as 13 months [**in the case of New Silver**](https://docs.google.com/spreadsheets/d/12VwbP0UxdL7Ck38SnwC-Ok8Pjo1O2F1Ryrf9gv7Mp88/edit#gid=1553817594)" After the ratification of several RWA-centric MIPs via the Endgame MIP Set, it's clear the DAO aims to scale these RWA Vaults to capture "safe" and diversified yield. As such, each step of this process must offer full transparency. Currently, no CU is "explicitly and directly" responsible for monitoring RWAs, though SF-001 plans to offer a set of viable solutions. The proposal notes that these efforts were conducted as an extension of the team's current mandate and came attached with considerable extra costs. <small>**Summary of Community response:**</small> Per @Aes, SF-001 is currently in the [**process of onboarding**](https://forum.makerdao.com/t/mip55c3-sp12-commercial-risk-and-legal-domain-work-to-support-sf-001-expanded-mandate-related-to-rwas/18943) to develop and report on existing RWA collateral types. > "Given MakerDAO’s significant expansion in RWAs and the fact that a majority of protocol income is derived from RWAs, we believe it is critical that these assets are monitored, reported on, and transparency around these assets given the off-chain nature and complexity is provided to the community in a digestible format." *Rspa believes the desired solution has three tiers:* <small>**1. Data Intake**</small> Under this system, the DAO requires trusted, capable third-party accountants to monitor cash flow and funnel that data into the *middleware infrastructure*. <small>**2. Middleware - Infrastructure**</small> This middleware would ideally be an oracle. Chainlink's [**Proof-of-Reserve**](https://chain.link/proof-of-reserve) is currently being strongly considered barring further community input. <small>**3. Representation**</small> >"Representation is more than [its] UX." Ideally, this data would be curated in a manner that enables vault health to be quickly checked, while still providing granular breakdowns for those wishing to dive further. **Last week's G&R call contained a [live discussion](https://www.youtube.com/watch?v=GhJYXfvt_3w&t=2052s) on RWA management approaches toward due diligence, maintenance, and monitoring.** SF-001 first relays *why* such a solution is required: > "If you're an MKR holder or a metaDAO, you could direct funds to yourself. There's no law against it, and particularly as an MKR holder, there's no one to stop you. So, this is something that needs to be designed into the system itself, to ensure that when [this occurs] it's either very obvious or just not possible." - [G&R Ep. 21 (39:38)](https://youtu.be/GhJYXfvt_3w?t=2378) Another pressing topic was Oracle choice, namely, *would Maker Oracles be utilized?* Per @nikKunkel, RWA deals currently have no standardized template. Each implementation requires custom tailoring and unique parameters that make the operation too difficult to scale. *In response, @rspa offers an interesting solution:* > "In the future, perhaps RWA collateral should be chosen by the ability to monitor it easily. With crypto collateral, we're pretty choosy. We should apply the same discretion in the real world." --- ## :phone: Calls, Meetings, and Events <!-- Constanza --> <sup> Visit: [_Calls Calendar_](https://calendar.google.com/calendar/u/0?cid=bWFrZXJkYW8uY29tXzNlZmhtMmdoaXBrc2VnbDAwOWt0bmlvbWRrQGdyb3VwLmNhbGVuZGFyLmdvb2dsZS5jb20) ### Last Week's Calls - **Meet Your Delegate #22 | HKUST EPI Blockchain** -- _Wednesday, December 14<sup>th</sup>, 2022_ - [Video](https://youtu.be/S-ON_8Sulm8) / [Forum](https://forum.makerdao.com/t/meet-your-delegate-22-hkust-epi-blockchain/19140jm0YpPeQrbI) / [Platform](https://forum.makerdao.com/t/hkust-epi-blockchain-delegate-platform-hkust/19113) - **Know Your MIP #16 | MIP92: Onboard PSM USDC to Yearn to earn yield** -- _Wednesday, December 14<sup>th</sup>, 2022_ - [Video](https://youtu.be/ZbxvQAxvuBc) / [Forum](https://forum.makerdao.com/t/mip92-onboard-psm-usdc-to-yearn-to-earn-yield/18971) - Check G&R [#218](https://forum.makerdao.com/t/governance-and-risk-218-thursday-december-08-at-17-00-utc/19062) for an overview of MIP92 by @corn, its author. - **Decentralized Voter Committee** | Overview of the Endgame Constitution _Wednesday, December 14<sup>th</sup>, 2022_ - [Video](https://youtu.be/hJSqYTzensQ) / [Forum](https://forum.makerdao.com/t/todays-endgame-call-2pm-et-8pm-cet-overview-of-the-endgame-constitution/19168) - Be sure to follow the [Endgame's Discord Channel](https://www.google.com/url?q=https://discord.gg/BvYahVmxKU&sa=D&source=calendar&usd=2&usg=AOvVaw0rHavBFPijsb_q-AW-vjMo) for the latest and freshest news and discussions! - **MakerDAO Governance & Risk Meeting #219** -- _Thursday, December 15<sup>th</sup>, 2022_ - [Video](https://youtu.be/GhJYXfvt_3w) / [Forum](https://forum.makerdao.com/t/governance-and-risk-219-thursday-december-15-at-17-00-utc/19174) / [Forum Recap | December 8 - 14, 2022](https://youtu.be/VwmNyKEjQOA) / [Slides](https://docs.google.com/presentation/d/1m3mcmyxWki_vG28Os_gaW6BdYDtpXjpzbWpDgSysHxQ/edit#slide=id.g10b4eb8e32d_2_93) - _Maker Transaction Level Accounting Dashboard_ initiative update by @lyt from Strategic Finance. - _Develop Comprehensive On-chain Monitoring Solution for RWA Vaults_ discussion kicked off by @Davidutro. ### Upcoming Calls - **Decentralized Voter Committee** - [date=2022-12-21 time=19:00:00 timezone="UTC"] - [Join Link](https://us02web.zoom.us/j/89326394914) - **Delegate Office Hours** - [date=2022-12-21 time=16:00:00 timezone="UTC"] - [Join Link](https://us02web.zoom.us/j/88920093364) - **MakerDAO Governance & Risk Meeting** - CANCELLED! --- ### **Core Unit Office Hours** - [Join Link](https://us02web.zoom.us/j/82603350722?pwd=RThleVo5QlBRT1FuOWxiRCs3K0k2Zz09) | GovAlpha Governance Q&As - Mondays at 17:00 UTC - [Join Link](https://us02web.zoom.us/j/85252786103?pwd=bEZaZXdEcGlSWWd5bmpxMDBvVjdEUT09) | Sustainable Ecosystem Scaling - Tuesdays at 13:30 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 at 15:00 UTC - [Join Link](https://us02web.zoom.us/j/81560369659) | 6S Capital - Every Other Wednesday at 14:00 UTC - [Join Link](https://meet.google.com/sap-nttu-xga) | Growth - First Wednesday of Each Month at 17:00 UTC - [Join Link](https://meet.google.com/nio-jrqq-guu) | Governance Communications - Fridays at 18:00 UTC --- ## ⚓ **Resources** <!-- Artem --> <details><summary>Open List</summary><br> ▸ [All Available Dashboards](https://forum.makerdao.com/t/all-available-dashboards/16104) ▸ [All Available Guides](https://forum.makerdao.com/t/all-available-guides/16159) | [Google Sheet](https://docs.google.com/spreadsheets/d/1cb9x9r_MPDHqAzUGTxdECzzismFbnV-IwaWUMDeIAPY/edit#gid=0) ▸ [Calls Calendar](https://forum.makerdao.com/t/the-calls-calendar/16095) ▸ [Core Units](https://forum.makerdao.com/c/core-units/31) ▸ [Delegates](https://vote.makerdao.com/delegates) ▸ [Forum](https://forum.makerdao.com) and [Maker Discord](https://discord.gg/YtBXXYuVDB) ▸ [Forum Explorer](https://forum.makerdao.com/explorer) ▸ [Forum discussions - Governance Dashboard](https://www.makerdao-governance-dashboard.com/tracker/forum-discussions) ▸ [Governance Dashboard Tracker](https://www.makerdao-governance-dashboard.com/tracker) | [Google Sheet Version](https://docs.google.com/spreadsheets/d/1LWNlv6hr8oXebk8rvXZBPRVDjN-3OrzI0IgLwBVk0vM/edit#gid=0) ▸ [Guides](https://forum.makerdao.com/c/resources/guides/72) ▸ [Job Opportunities](https://forum.makerdao.com/c/resources/job-opportunities/11) ▸ [Learning Portal](https://community-development.makerdao.com/en/learn/) and [Technical Documentation](https://docs.makerdao.com/) ▸ [MakerBurn](https://makerburn.com/#/rundown) ▸ [MakerDAO’s Discord Servers](https://forum.makerdao.com/t/makerdaos-discord-servers/16110) ▸ [Office Hours List](https://forum.makerdao.com/t/office-hours-list/16162) ▸ [Participation Tools](https://community-development.makerdao.com/en/learn/governance/participate) ▸ [Votes and Important Dates Calendar](https://forum.makerdao.com/t/the-votes-and-important-dates-calendar/16096) </details></br> ### Disclaimer <small>*Disclaimer: This update is assembled by a group of 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.*</small> ![](https://i.imgur.com/O8Z6GCX.png)