---
# System prepended metadata

title: 'June 28 - July 5th, 2022'
tags: [Weekly Relay]

---

---
tags: Weekly Relay
---

# June 28 - July 5th, 2022

![](upload://fa0O8PxIm2vijgmHz6yTDJ3pVA.jpeg)

_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, @nothsa, @Sol_Invictus, and @Artem_Gordon

##### [Online PDF Version](https://pdfhost.io/v/FUf40CTIj_Weekly_Relay_June_28_July_5_2022)

---
## **What in the DAO is Going On?!**

### 📰 Halted Withdrawals on Lending Platforms

Myriad lending protocols halted customer withdrawals last week, citing various reasons for the delays. 

*Babel*, *Celsius*, *CoinFLEX*, *Hodlnaut*, and *Vauld* are among the names closing up shop as the liquidity crunch, or ["UST Contagion"](https://fortune.com/2022/05/12/terrausd-ust-luna-contagion-tether-bitcoin-solana-ether-price-crypto/), continues its spread. 

<details><summary>Click for more info on Celsius' wBTC-A position</summary>
<br>

**With Celsius standing as one of Maker's primary vault holders, their liquidity situation is the headline for our purposes.**

Collateral hadn't been added to their wBTC-A position since June 16th, and its collateralization ratio dropped to a low of 154.1%. 

That changed on July 1st when the Celsius wallet began paying back DAI en masse. 

![Celsius deposits](upload://3lRIK5wa0PLMEGMveLVEZYThwvk.png)

A frenzy of **deposits totaling 196.7M upped vault collateralization to over 577.8%**, *decreasing* its debt from ~202M DAI on July 1st to just over 82M DAI by the 4th. 

![Celsius de-risked](upload://A7t1hn9HRD98E1fdukDru4WQgW9.png)

*Sidenote: In a room of the bad company, [CoinFLEX](https://twitter.com/FatManTerra/status/1541553080159830017/photo/1) still managed to stand out for its truly horrendous "risk management" practices.*
</details>

### 📰 Harmony Bridge Exploit Leads to the Theft of 6M DAI

**Damages:** The Harmony Bridge held around $100M in wrapped assets, the entirety of which was drained, meaning every 1-wrapped token is currently un-backed.

<details><summary>Click for more info on the hack and resulting DAI loss.</summary>
<br>

**Harmony’s 2 of 5 multisig** fell to a spearhead phishing campaign [speculated to have been readied and performed by the Lazarus Group](https://www.coindesk.com/tech/2022/06/30/harmony-horizon-exploit-linked-to-north-korea-10m-bounty-offered-in-global-manhunt/), the name was given to North Korea’s state-sponsored hacking force.

The team reached out numerous times over the week via [on-chain correspondence](https://etherscan.io/tx/0xa4eda32985503e91dd02c31222a5e53a6a40f55129ec86c716d6446a7186b426) but received no response as the last of the funds made their way through Tornado Cash. 

#### **Not Lazarus’ first Rodeo**

An FBI investigation identified that the methods used in the [Ronin hack](https://blockworks.co/fbi-says-north-korea-behind-625m-ronin-hack/) were eerily similar to attacks known to be carried out by the group, in which social engineering was utilized to gain access to company servers that contained the private keys used to sign legitimate network transactions. 

*The Lazarus Group features two units with two distinct objectives:*

1.	**BlueNorOff** (APT-38, BeagleBoyz) is financially motivated sector hosting around 1,700 members. The sub-group primarily targets the SWIFT system and centralized and decentralized blockchain projects.
2.	**AndAriel** (Andarial) focus lies on South Korean disruption. Not much is known about the sub-sector, but its targets have included everything from high-ranking Korean businessmen, to multi-national corporations, to government officials.

#### **Potential Vectors for the Attack**

Per a Twitter thread via [Mudit Gupta](https://twitter.com/Mudit__Gupta/status/1540225234153996288), the heist falls in a string of similar “traditional hacks,” where the breaching of centralized servers, rather than an on-chain attack, led to the tremendous losses.

Though full details have yet to be released, Gupta speculates that this central server was breached, warning developers that the next generation of mega-hacks won’t target chain-security but will come through more traditional vectors. 

He concludes that traditional security needs to be approached with the same vigor as chain-security. 

#### **What this means for Harmony**

Harmony is functionally insolvent. Around $100M of its total $200M in locked value was housed on the Harmony Bridge. Without intervention, the chain is unlikely to recover. 

This figure may have dropped the hat a couple of months back, but with the VC landscape decimated, [non-FTX/Alameda funding](https://www.cnbc.com/2022/06/22/sam-bankman-fried-rescues-crypto-lenders-blockfi-voyager.html) is tough to come by. 

#### **What this means for DAI**

As multi-chain DeFi surged, many warned of centralized bridges' risks. Risks which, unfortunately, made themselves abundantly clear this year.

DAI played a minimal role in the Harmony ecosystem, but a number of wrapped derivatives were siphoned and laundered all the same. Around [6 million DAI](https://dune.com/queries/991649/1717121) were initially locked in the bridge contract. **Today, less than ~9.5k remains**.

*Sidenote: Massive props to the PE team for staying the course. The Optimism wormhole (and similar implementations) enables DAI to flourish without the systematic risks inherent to centralized bridging contracts.*

*Last year, many feared DAI was falling behind the competition as various “stablecoins” quickly made their market presence known via shiny, new layer-1s. But rather than playing to the noise, PE stayed the course, positioning the DAO and DAI to benefit from the next wave of layer-2 innovation fully.*
</details>

---

[This Twitter thread](https://threadreaderapp.com/thread/1544186151585533952.html) talks about how a Crypto Stealer attack works and how to protect against it, and basic malware analysis.

---

## **Current Events**

### **Delegate Office Hours**

We are excited to introduce a new Delegate Office Hours call on Thursday, July 7th at 16:00 UTC!

What started as a discussion by Tim Schuppener, Raphael Spannocchi, and others to help improve communication and coordination between delegates and core units has now become a public call named Delegate Office Hours. 

Thomas Flitter of Governance Communications will host the call. The format for this first call is simple; a kickoff discussion panel where each delegate has five minutes to speak on any topic of their choice, followed by an open mic section. Everyone is welcome to attend. 

*Coming to a Calendar near you!*

[Join Link - Zoom](https://us02web.zoom.us/j/86960768807) 👈

### **[DUX Updates - Fresh Off the Press!](https://forum.makerdao.com/t/dux-monthly-update-june-2022/16324)**
#### **[Governance Portal Release v0.6.0](https://www.notion.so/Governance-Portal-Release-v0-6-0-June-27th-cdbbb6352df049a688bcad66bbc01c)**

The DUX Core Unit team spent June delivering two primary new features: Gasless Poll Voting and Delegate Migration. The team also worked on improving the resiliency and efficiency of their tech infrastructure, especially needed after a recent increase in traffic and Delegate contracts.

The research and architecture design phase for the Gasless Poll Voting feature has been finalized, and the finished product is set to launch in Q3 of this year. The system will be:

* Fully compatible with Maker’s current voting system
* Free for the user
* Available to all MKR holders and delegates

The Delegate Migration feature, scheduled for launch in about two weeks, aims to streamline the migration process for expiring Delegate contracts, both for Recognized Delegates and for delegators.

### **[Part 3 of the End-Game Summary by LongForWisdom](https://forum.makerdao.com/t/end-game-summary-part-3/16245)**

To aid his understanding and increase the accessibility of the ideas for everyone, @LongForWisdom posted a summary of [Part 3](https://forum.makerdao.com/t/end-game-summary-part-3/16245) of @rune's Endgame Plan.

The structured, bullet-pointed summary:
* Stresses the simplicity of the process
* Points out budget challenges as the primary area of concern
* Highlights the need for best practices to achieve a general separation of powers
    * MetaDAOs may be the best way to compartmentalize this risk
* Introduces ideas around DAO2DAO operations

Follow @LongForWisdom's [Endgame Index List](https://forum.makerdao.com/t/endgame-index-list/16021) for a listing of Endgame-related posts and @LongForWisdom's summaries.

### **[A Unified DAO Toolkit to Help Make Transparency Easy](https://forum.makerdao.com/t/unified-dao-toolkit-making-transparency-easy/16210)**

In this post, @rune argues that we should have "maximum reasonable transparency" regarding the work Core Units are engaging in. All significant work interactions between independent Core Units must be carried out publicly and thoroughly documented according to standardized procedures.

@rune proposes a "unified DAO toolkit" to achieve this level of transparency. This kit would comprise a software tool used for workflow tracking, similar to Jira or Trello, and a wiki-like governance information dashboard. These two components combine governance and operations under a single system and allow for built-in transparency for "free."

### **[Risk Updates - Fresh Off the Press!](https://forum.makerdao.com/t/risk-core-unit-month-in-review-june-2022/16316)**

<details><summary>The Risk Core Unit was busy in June. Particular areas of interest are their work developing a multi-chain DAI liquidity strategy, an update to the Makerburn website, and continuing work on Maker Risk Dashboard v3.</summary><br>

The team put out an in-depth [post](https://forum.makerdao.com/t/thoughts-on-multichain-dai-liquidity-strategy/16071) regarding why we need better DAI liquidity across blockchains and how we can achieve it. Ways to boost cross-chain DAI liquidity include:

* Liquidity Incentives: A limited scope of incentives to bootstrap DAI liquidity on external domains to the point where DAI markets become self-sustainable.
* Partnerships: Hand in hand with self-funded incentives, Maker can partner with external protocols to support DAI liquidity and integration in their projects.
* Community Visibility: Independent community members and/or MKR whales don’t face the same governance and custody risks that MakerDAO itself would when deploying assets cross-chain. Hence, they could play an essential part in improving DAI liquidity across external domains.

The [Makerburn website](https://makerburn.com/) has new [system surplus](https://makerburn.com/#/system-surplus) and [estimate of annual profits](https://makerburn.com/#/estimate) pages.

![](upload://y03F1WRy6RDSwtyslWMJOtECpeo.png)

The team recently made a [post](https://forum.makerdao.com/t/announcing-maker-risk-dashboard-v3/16335) announcing v3 of the Maker Risk Dashboard.

![](upload://9M4pmOPUgr0UTHiauS3PlqwmuCe.png)

For this third iteration, the team has:

* Redesigned the website to provide a better and more accessible user experience
* Abstracted data, concepts, and models to reduce complexity and simplify the dashboard
* Added new features to provide access to data not previously available in v2

</details></br>

---

## **This Week in Governance**

#### **[Weekly MIPs Update #94](https://forum.makerdao.com/t/weekly-mips-update-94/16330)**

Ratification polls, proposals, and pre-MIP discussions.

### Executive Vote(s)

Two executive votes passed this week, and the following changes occurred within the Maker Protocol:

- [MKR Vesting Transfers - June 22, 2022](https://vote.makerdao.com/executive/template-executive-vote-mkr-vesting-transfers-june-22-2022) -- _Passed on July 02, 2022, 13:03 UTC. Executed on July 04, 2022, 14:00 UTC._ 
- [Core Unit MKR Transfer and Advancing Collateral Offboardings - June 29, 2022](https://vote.makerdao.com/executive/template-executive-vote-core-unit-mkr-transfer-and-advancing-collateral-offboardings-june-29-2022) -- _Passed on June 29, 2022, 15:06 UTC. Executed on July 01, 2022, 16:40 UTC._

#### Core Unit MKR Vesting Transfers

| Core Unit | Amount |Budget Proposal|
|:---------:|:------:|:--------------:|
|[Deco Fixed Rate (DECO-001)](https://mips.makerdao.com/mips/details/MIP39c2SP23)|500 MKR|[Budget Proposal](https://mips.makerdao.com/mips/details/MIP40c3SP36)|
|[Real-World Finance (RWF-001)](https://mips.makerdao.com/mips/details/MIP39c2SP1)|152 MKR|[Budget Proposal](https://mips.makerdao.com/mips/details/MIP40c3SP61)|
|[Risk Core Unit (RISK-001)](https://mips.makerdao.com/mips/details/MIP39c2SP2)|175 MKR|[Budget Proposal](https://mips.makerdao.com/mips/details/MIP40c3SP25)|

#### Collateral Offboarding

As per these successful polls for offboarding [UNI-A](https://vote.makerdao.com/polling/QmSfLS6V#poll-detail), [UNIV2DAIETH-A](https://vote.makerdao.com/polling/QmQUozNn#poll-detail), [UNIV2WBTCETH-A](https://vote.makerdao.com/polling/QmY3YsDB#poll-detail), [UNIV2UNIETH-A](https://vote.makerdao.com/polling/QmUeYVa2#poll-detail), and [UNIV2WBTCDAI-A](https://vote.makerdao.com/polling/QmZHNkip#poll-detail), the following changes to liquidation parameters took place: 

| Parameter | Vault Type | + / - | From / To |
|:---------:|:----------:|:---------------------:|:---------:|
|[Liquidation Ratio](https://manual.makerdao.com/parameter-index/vault-risk/param-liquidation-ratio)| UNI-A |  +  | 165% / 1300% |
|[Liquidation Ratio](https://manual.makerdao.com/parameter-index/vault-risk/param-liquidation-ratio)| UNIV2DAIETH-A |  +  | 120% / 2000% |
|[Liquidation Ratio](https://manual.makerdao.com/parameter-index/vault-risk/param-liquidation-ratio)| UNIV2WBTCETH-A |  +  | 145% / 2400% |
|[Liquidation Ratio](https://manual.makerdao.com/parameter-index/vault-risk/param-liquidation-ratio)| UNIV2WBTCDAI-A |  +  | 120% / 800% |

The changes mentioned above will occur within 30 days. 
At the same time, the [Flat Kick Incentive (`tip`)](https://manual.makerdao.com/parameter-index/collateral-auction/param-flat-kick-incentive), [Liquidation Penalty (`chop`)](https://manual.makerdao.com/parameter-index/vault-risk/param-liquidation-penalty), and [Debt Ceiling](https://manual.makerdao.com/parameter-index/vault-risk/param-debt-ceiling) were set to 0 for all of these Collaterals.
This executive vote follows a [previously successful executive proposal](https://vote.makerdao.com/executive/template-executive-vote-parameter-changes-starknet-bridge-limit-and-authority-changes-recognized-delegate-compensation-sh-001-budget-distribution-june-08-2022#proposal-detail), and it is the next step of performing collateral offboarding, as defined by [MIP62](https://mips.makerdao.com/mips/details/MIP62).

_No changes to UNIV2UNIETH-A took place in this executive, as the vault-type already has 0 outstanding DAI. However, as this proposal passed, it will continue to be offboarded._

### Governance Polls

There are currently three active polls awaiting your participation:

| Poll Name | Discussion(s) |Start Date | End Date | 
|:---------:|:-------------:|:---------:|:--------:|
|[Add RWA-009 (HVBank) as a new Vault Type](https://vote.makerdao.com/polling/QmQMDasC)|[Initial Collateral Application](https://forum.makerdao.com/t/mip6-huntingdon-valley-bank-loan-syndication-collateral-onboarding-application/14219) / [Real-World Finance Core Unit Risk Evaluation](https://forum.makerdao.com/t/huntingdon-valley-bank-hvb-rwa-collateral-onboarding-risk-assessment/15828/1) / [Additional Risk Assessment - LOVE](https://forum.makerdao.com/t/huntingdon-valley-bank-hvb-additional-risk-assessment-love-cu-in-incubation/15886) / [Collateral Engineering Services Core Unit Evaluation](https://forum.makerdao.com/t/rwa009-hvbank-mip21-token-ces-domain-team-assessment/15861) / [Oracles Core Unit Evaluation](https://forum.makerdao.com/t/rwa009-huntingdon-valley-bank-collateral-onboarding-oracle-assessment/16069/1) / [HVB Transaction Documentation](https://forum.makerdao.com/t/huntingdon-valley-bank-transaction-documents-on-permaweb/16264) / [RWA Foundation: HVB Disclosure](https://forum.makerdao.com/t/rwa-foundation-hvb-disclosure/16267) / [Delegated Committee Proposal](https://forum.makerdao.com/t/real-world-finance-decision-making-and-delegated-committee-proposal/15276) |Jul 04, 2022, 16:00 UTC|  Jul 07, 2022, 16:00 UTC|
|[PPG - Open Market Committee Proposal](https://vote.makerdao.com/polling/QmefrhsE)|[Discussion](https://forum.makerdao.com/t/parameter-changes-proposal-ppg-omc-001-30-june-2022/16248)|Jul 04, 2022, 16:00 UTC|  Jul 07, 2022, 16:00 UTC|
|[Select a Target Level of rNPI Profitability to Guide Budget Cuts](https://vote.makerdao.com/polling/Qmasg6zr)|[Discussion](https://forum.makerdao.com/t/signal-request-bear-building-financial-resilience-dao-targets/16004)|Jul 04, 2022, 16:00 UTC|  Jul 07, 2022, 16:00 UTC|

### Prioritization Sentiment Polls

These are the final results gathered after the first run of prioritization sentiment polls ended:

| Prioritization Sentiment | Vote Breakdown | End Date |
|:------------------------:|:--------------:|:--------:|
|[Technical Resource Deployment](https://vote.makerdao.com/polling/QmYqBhDx)|![Results](upload://nxGPRiK9Kk0oeU5tCtqmAJWp0Dy.png)|Jul 04, 2022 20:00 UTC|
|[Collateral Class](https://vote.makerdao.com/polling/QmdZezCr)|![Results](upload://hINhWSdzptFQk9dBQTueuGBjNUh.png)| Jul 04, 2022 20:00 UTC|

### Community Greenlight Polls

No greenlights this week, so this is it for Governance. Now, _go vote!_

![](upload://a5Y5hnqF8smBYmcHArW9r5uP7mp.gif)

---

## **Meetings and Events**

**Last Week's Call Recordings:**

- Open Decentralized Voter Committee | June 29, 2022
    - [Forum](https://forum.makerdao.com/t/endgame-decentralized-voter-committee-meetings-wednesday-june-29-9pm-cest-and-thursday-june-30-9pm-cest/16212) | [Video Recording](https://www.youtube.com/watch?v=yO0i2bP_UZM)
- Open Decentralized Voter Committee | June 30, 2022
    - [Forum](https://forum.makerdao.com/t/endgame-decentralized-voter-committee-meetings-wednesday-june-29-9pm-cest-and-thursday-june-30-9pm-cest/16212) | [Video Recording](https://www.youtube.com/watch?v=v4i3RqzMoxE)
- Governance and Risk | Ep. 197
    - [Forum](https://forum.makerdao.com/t/governance-and-risk-196-thursday-june-23-at-17-00-utc/15998/2) | [Video Recording](https://www.youtube.com/watch?v=CTJsxelOSNk)
- Focus On # 12: Centrifuge Indenture Trust Agreement Deep Dive 
    - [Forum](https://forum.makerdao.com/t/rescheduled-focus-on-12-centrifuge-indenture-trust-agreement-deep-dive/15262) | [Video Recording](https://www.youtube.com/watch?v=rkgN7ajFtiY)

**Upcoming Calls:**

- Avoiding the Tragedy: ACREinvest Delegate Office Hours | *June 6 at 19:00 UTC*
    - [Forum](https://forum.makerdao.com/t/avoiding-the-tragedy-acreinvest-delegate-office-hours/15857) | [Join Link](https://acreofamerica.zoom.us/j/81726802661)
- Meet Your Delegate #16 - pvl | *June 7 at 15:00 UTC*
    - [Forum](https://forum.makerdao.com/t/meet-your-delegate-16-pvl/16206) | [Join Link](https://us02web.zoom.us/j/89695990453?pwd=izoTjb5jrCAAOrug8GuQdb_Gofa26F.1)
- Kickoff - Delegate Office Hours | *June 7 at 16:00 UTC*
    - [Join Link](https://us02web.zoom.us/j/86960768807)

**Recurring Calls:**

- Open Decentralized Voter Committee | [Forum](https://forum.makerdao.com/t/decentralized-voter-committees-startup-phase-wednesdays-5pm-cest-all-mkr-holders-welcome/15330) | [Join Link](https://www.google.com/url?q=https://us02web.zoom.us/j/81436458345&sa=D&source=calendar&ust=1654445893399659&usg=AOvVaw0-CBSXWDpRLmmAO6XGLV0G) - *Wednesdays and Thursdays at 19:00 UTC* 
- Governance & Risk Call | [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 at 17:00 UTC
- [Join Link](meet.google.com/frj-vpji-huc) | Immunefi Security - Every Other Monday at 23:00 UTC | Alternative [Join Link](https://makerdao.bigbluemeeting.com/adm-eox-jtz-tsi) - Every Other Wednesday at 15:00 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 at 15:00 UTC
- [Join Link](https://us02web.zoom.us/j/85252786103?pwd=bEZaZXdEcGlSWWd5bmpxMDBvVjdEUT09) | Sustainable Ecosystem Scaling - Tuesdays at 13:30 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/kwf-qayf-xdq) | Real World Finance - Every Other Wednesdays at 18:00 UTC 
- [Join Link](https://meet.google.com/nio-jrqq-guu) | Governance Communications - Fridays at 18:00 UTC
- [Join Link](https://us02web.zoom.us/j/81560369659) | 6S Capital - Every Other Wednesday at 14:00 UTC

## ⚓ **Resources**

<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)

> [Calls Calendar](https://forum.makerdao.com/t/the-calls-calendar/16095)

> [Forum](https://forum.makerdao.com) and [Maker Discord](https://discord.gg/YtBXXYuVDB)

> [Governance Dashboard Tracker](https://www.makerdao-governance-dashboard.com/tracker) | [Google Sheet Version](https://docs.google.com/spreadsheets/d/1LWNlv6hr8oXebk8rvXZBPRVDjN-3OrzI0IgLwBVk0vM/edit#gid=0)

> [Know Your MIP Index](https://forum.makerdao.com/t/know-your-mip-index/6768)

> [Learning Portal](https://community-development.makerdao.com/en/learn/) and [Technical Documentation](https://docs.makerdao.com/)

> [MakerDAO’s Discord Servers](https://forum.makerdao.com/t/makerdaos-discord-servers/16110)

> [MakerBurn](https://makerburn.com/#/rundown)

> [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>

###  🎙️ Have Feedback?

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.

*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.*