G&R #116 Snippet

--- tags: Snippets --- # G&R #116 Snippet Domain team updates, Flash Loans discussion, Nexus Mutual presentation and more. All the updates from MakerDAO Governance and Risk Call #116 in this `snippet` ## Flash Loans [[Urgent] Flash Loans and securing the Maker Protocol](https://forum.makerdao.com/t/urgent-flash-loans-and-securing-the-maker-protocol/4901) On Oct 23 @LongForWisdom posted about how a flash loan was used to pass the executive which highlights a problem, flash loans could be used to influence Governance and resurfaced the possible Governance attack vector (since MKR voting is built to have skin in the game). Couple of actions: - Encourage more MKR on the hat - Provide spell to GSM pause for 72 hours - De-auth some of the modules that skip that delay (freeze oracle feeds, circuit breakers like USDC-A,) Amount of MKR in open markets exceeded the hat, **this is the urgent problem**. Also because oracle's go behind governance delay it means we suffer oracle attacks during that whole period. THey're still working through how to deal with liquidations and oracle triggers which will post on the forums. Another solution is an Oracle IAM, which is a large trade off. - [B.Protocol's response on Twitter](https://twitter.com/bprotocoleth/status/1321726575486914565) - There was a [medium post](https://medium.com/coinmonks/how-to-turn-20m-into-340m-in-15-seconds-48d161a42311) about this subject awhile ago, so the incentives here to make technical solutions. The community can still rally to protect the hat versus MKR liquidity on pools out there. ## Team Updates ### Smart Contracts - Weekly executive passed, B.Protocol whitelisting passed, monthly executive bundle passed. - Pushed YFI-A to Kovan, no changes to collateral onboarding sheet, no domain team reviews from last week. - YFI, BAL delayed to next week due to flash loan mitigation taking priority. - Plan to assess UNI-LP tokens, renBTC, [check out prioritization framework.](https://docs.google.com/spreadsheets/d/1IX9e2fyfz7djtDMKn5gMyGsyFxHoY75GncMbAjnSXrM/edit#gid=0) - There's a [read only channel for collateral onboarding](https://chat.makerdao.com/channel/collateral-onboarding-updates-ext), anyone can join to get updates, pipeline announcements, and more. ### Oracles - This week deployed BAL and YFI oracles, but may push off onboarding in favor of executives to address flash loans. - Assessments for PAXG, AAVE, and GUSD will be ready to go shortly. - Focusing on LP token oracles. ### Risk - Ongoing work on renBTC, started to focus on UNI-LP tokens. - Rate changes: rate working group proposed a change to [lower ETH-B Stability Fee from 6% to 4%](https://forum.makerdao.com/t/rates-changes-proposal-26-oct-2020/4877) - Signal on stablecoins ended today with [Option 3 - Migrate Users to a new Vault Type](https://forum.makerdao.com/t/signal-request-stablecoin-action-plan/4808) and will proceed to a governance vote next week. - Maker has unutilized DC, may want to consider decreasing to manage it for certain collateral types. ### Operations and Community Development - Submitted MIP 28 for [formal submission](https://forum.makerdao.com/t/mip28-operational-support-domain-definition/4627/4) - Working on submitting a budget MIP. - Working on launching grants platform. ### Collateral Onboarding - [ConsolFreight](https://www.youtube.com/watch?v=gr2irePbjVI) replay from Collateral Onboarding call from October 28. - [Discussion](https://forum.makerdao.com/t/cf-drop-mip6-application-consolfreight-drop-tokenized-freight-shipping-invoices/2214/30) - Curve Finance team presented on October 28. - Applications for Kleros are still open, [apply here.](https://blog.kleros.io/kleros-maker-fellow-on-decentralized-finance/) - [Claim your POAP NFT's](https://bit.ly/37SKKzu) for community members proof of attendance ### MIPs - This is the last week of October governance cycle. [Governance bundle passed](https://vote.makerdao.com/executive/approve-october-2020-governance-cycle-bundle-october-26-2020?network=mainnet#proposal-detail), all proposals are now officially accepted. - Next week is beginning of November cycle, formal submission ends next Wednesday. - [Proposals and sup-proposals in RFC phase](https://forum.makerdao.com/c/MIPs/rfc/15) - Community Greenlight polls are still live until November 2, [go vote!](https://vote.makerdao.com/polling?network=mainnet) - Ongoing conversation about [MakerDAO Liquidity Pools](https://forum.makerdao.com/t/makerdao-needs-liquidity-pools/4824), [Nexus Mutual](https://forum.makerdao.com/t/makerdao-protocol-cover-using-nexus-mutual/4761/9), [Flapper Distributor](https://forum.makerdao.com/t/flapperdistributor-a-way-to-distribute-system-surplus-while-minimizing-governance/4591) ## Other Presentations and Updates ### Nexus Mutual - @Hugh_Karp presented how [MakerDAO can benefit from Nexus Mutual.](https://youtu.be/0v3E_kpLxFg?t=3066) - Details and discussion:[MakerDAO Protocol Cover using Nexus Mutual](https://forum.makerdao.com/t/makerdao-protocol-cover-using-nexus-mutual/4761) ## Peg - The DAI supply rises to around 937 million. - Most volume on Uniswap centering around $1.008/1.009.