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# System prepended metadata

title: Maker Relay 34
tags: [Maker Relay]

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tags: Maker Relay
---

# Maker Relay 34

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

_Hey everyone, thanks for checking out Maker Relay!_

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

This week, we have an *urgent* vote to set the PSM-USDC-A Debt Ceiling, as well as MIPs that have been formally submitted for this month's governance cycle!👇

## Votes

Check our [Participation Tools](https://community-development.makerdao.com/en/learn/governance/participate) page for protocol analytics, Dai analytics, collateral & liquidation metrics, governance history, and auctions data.

### Executive Vote

[**Urgent** Executive: Increase PSM-USDC-A Debt Ceiling](https://vote.makerdao.com/executive/increase-psm-usdc-a-debt-ceiling?network=mainnet#proposal-detail)
- Check out [Primoz's post](https://forum.makerdao.com/t/urgent-executive-psm-usdc-a-usdc-a-dc-changes-1st-march-2021/6794) about stablecoin volume through the 3pool in Curve.
- The PSM-USDC-A Debt Ceiling will increase to 1 billion DAI from its current value (around 247M at the time of writing).
- The USDC-A Debt Ceiling will decrease from 555 million DAI to zero DAI.
- This is a step toward fully replacing stablecoin vaults with PSM options for Maker.

[Rates Updates, UNI-V2-DAI-USDT Onboarding](https://vote.makerdao.com/executive/rates-updates-uni-v2-dai-usdt-onboarding?network=mainnet#proposal-detail)
- ETH-A Stability Fee parameter will increase from 4.5% to 5.5%.
- ETH-B Stability Fee parameter will increase from 7.5% to 9%.
- PSM-USDC-A Fee Out parameter will decrease from 0.1% to 0.04%.
- UNIV2DAIUSDT-A vault type will be added with the parameters listed below:
	- Stability Fee: 4%
	- Liquidation Ratio: 125%
	- Debt Ceiling: 3 million DAI
	- Auction Lot Size: 50,000 DAI
	- Minimum Bid Increment: 3%
	- Bid Duration: 6 hours
	- Max Auction Duration: 6 hours
	- Liquidation Penalty: 13%
	- Debt Floor: 2,000 DAI

### Weekly Governance Cycle

*Some polls use [instant run-off voting](https://en.wikipedia.org/wiki/Ranked_voting), so you can select multiple options, and ranked-choices will be prioritized.*

| Poll Name | Vote | Discussion | Type | 
| --------- | ---- | ---------- | ------- |
| MakerDAO Supports EIP1559 (ETH fork) | [Vote](https://vote.makerdao.com/polling/QmTKVMWq?network=mainnet#poll-detail) | [Discussion,](https://forum.makerdao.com/t/signal-request-does-makerdao-support-eip-1559/6646) [Proposal from ETH](https://eips.ethereum.org/EIPS/eip-1559) | ETH Response |
| Add ETH-C Vault Type | [Vote](https://vote.makerdao.com/polling/QmRE43ob?network=mainnet#poll-detail) | [Proposal,](https://forum.makerdao.com/t/signal-request-new-vault-type-for-eth-with-a-higher-lr/6069) [Risk Eval](https://forum.makerdao.com/t/eth-c-risk-parameters/6684) | Vault Onboarding |
| Collateral Auction Parameter Updates | [Vote](https://vote.makerdao.com/polling/QmPyvEzd?network=mainnet#poll-detail) | [Discussion](https://forum.makerdao.com/t/flip-auctions-parameter-adjustment-proposal/6732) | Risk Parameters |
| Increase the ETH-A Target Available Debt (`gap` parameter) | [Vote](https://vote.makerdao.com/polling/QmXKFm9n?network=mainnet#poll-detail) | [Discussion](https://community-development.makerdao.com/en/learn/governance/module-dciam) | Risk Parameters |

### Last Week

[Onboarding Uniswap V2 LPTs, Parameter Updates](https://vote.makerdao.com/executive/onboarding-uniswap-v2-lpts-parameter-updates?network=mainnet#proposal-detail)
**Passed** on Feb 23, 2021, 15:09 UTC.
**Executed** on Feb 25, 2021, 15:11 UTC.

- Collateral Onboarding
	- The UNIV2WBTCDAI-A vault type has been added using UNI-V2-WBTC-DAI as collateral.
	- The UNIV2AAVEETH-A vault type has been added using UNI-V2-AAVE-ETH as collateral.
- Debt Ceiling Instant Access Module (DC-IAM)
	- The DC-IAM has been activated for LRC-A
	- The DC-IAM has been activated for BAT-A
	- The DC-IAM has been activated for BAL-A
	- The DC-IAM has been activated for MANA-A
	- The DC-IAM has been activated for ZRX-A
	- The DC-IAM has been activated for KNC-A
	- The DC-IAM has been activated for RENBTC-A
- Other Changes
	- ETH-A Maximum Debt Ceiling has increased from 1.5 billion DAI to 2.5 billion DAI.
	- System Surplus Buffer has increased from 10 million DAI to 30 million DAI.
	- DAI Savings Rate has increased from 0% to 0.01%
	- The Liquidations Circuit Breaker permissions over PSM-USDC-A have been revoked.
	- The Liquidations Circuit Breaker permissions over UNIV2USDCDAI-A have been revoked.

### Signal Requests

[Adjusting Dust Parameter](https://forum.makerdao.com/t/signal-request-adjusting-dust-parameter-2021-2/6704)
- *The `dust` parameter is the minimum possible debt for a vault. You can learn more about the `dust` / “debt floor” in the documentation [here](https://community-development.makerdao.com/en/learn/governance/param-debt-floor/). The dust value of all vaults is currently set to 2,000 DAI, and this signal is asking what value, if any, the parameter should change to.*

[Increase PSM-DC and set Debt Ceiling for USDC-A/B to 0](https://forum.makerdao.com/t/signal-request-increase-psm-dc-and-set-debt-ceiling-for-usdc-a-b-to-0/6692)
*As the stability fees collected from USDC are all 0, this signal proposes an adjustment of the Debt Ceilings and stops the `lerp` parameter.*

## Updates

### MIPs

[Weekly MIPS Update #28 (March 1st, 2021)](https://forum.makerdao.com/t/weekly-mips-update-28/6791)
 
#### Newly submitted proposals

- [MIP4c2-SP8: MIP 9 Amendments](https://forum.makerdao.com/t/mip4c2-sp8-mip-9-amendments/6793)
- [MIP4c2-SP13: MIP0 Amendments](https://forum.makerdao.com/t/mip4c2-sp13-mip0-amendments/6758)
- [MIP13c3-SP10: Declaration of Intent - eurDai](https://forum.makerdao.com/t/mip13c3-sp-declaration-of-intent-eurdai/6766)
- [Growth Core Unit (GRO-001) Application](https://forum.makerdao.com/t/mip39c2-sp4-growth-core-unit-gro-001/6715)
    - Budget: [MIP40c2-SP4](https://forum.makerdao.com/t/mip40c2-sp4-core-unit-budget-gro-001/6716)
    - Facilitator: [MIP41c4-SP4](https://forum.makerdao.com/t/mip41c4-sp4-facilitator-onboarding-gro-001/6717)

#### Proposals in Formal Submission

##### MIPs

* [MIP34: Keg Streaming Payments Module](https://forum.makerdao.com/t/mip34-keg-streaming-payments-module/6013)
* [MIP38: DAO Primitives State](https://forum.makerdao.com/t/mip38-dao-primitives-state/6095)
* [MIP39: Core Unit Framework](https://forum.makerdao.com/t/mip39-core-unit-framework/6096)
* [MIP40: Budget Framework](https://forum.makerdao.com/t/mip40-budget-framework/6097)
* [MIP41: Facilitator Framework](https://forum.makerdao.com/t/mip41-facilitator-framework/6098)
* [MIP43: Term Lending Module (TLM)](https://forum.makerdao.com/t/mip43-term-lending-module-tlm/6153)
* [MIP45: Liquidations 2.0 (LIQ-2.0) - Liquidation System Redesign](https://forum.makerdao.com/t/mip45-liquidations-2-0-liq-2-0-liquidation-system-redesign/6352)
* [MIP46: Parameter Proposal Groups](https://forum.makerdao.com/t/mip46-parameter-proposal-groups/6341)
* [MIP48: Streaming Payments via the Keg](https://forum.makerdao.com/t/mip48-streaming-payments-via-the-keg/6340)

##### Amendments

* [MIP4c2-SP10: MIP0 Amendments](https://forum.makerdao.com/t/mip4c2-sp10-mip0-amendments/6099/4)
* [MIP4c2-SP12: MIP16 Amendments](https://forum.makerdao.com/t/mip4c2-sp12-mip16-amendments/6101)

##### Core Unit Proposals

* Real-World Finance: [MIP39c2-SP1 ](https://forum.makerdao.com/t/mip39c2-sp1-adding-core-unit-real-world-finance/6224)
  * Budget: [MIP40c2-SP1](https://forum.makerdao.com/t/mip40c2-sp1-modify-core-unit-budget-real-world-finance/6225)
  * Facilitator: [MIP41c4-SP1](https://forum.makerdao.com/t/mip41c4-sp1-facilitator-onboarding-real-world-finance/6226)
* Risk: [MIP39c2-SP2](https://forum.makerdao.com/t/mip39c2-sp2-adding-risk-core-unit/6342)
  * Budget: [MIP40c2-SP2](https://forum.makerdao.com/t/mip40c2-sp2-add-core-unit-budget-risk-core-unit/6343)
  * Facilitator: [MIP41c4-SP2](https://forum.makerdao.com/t/mip41c4-sp2-risk-core-unit-facilitator-onboarding/6344)
* Governance: [MIP39c2-SP3](https://forum.makerdao.com/t/mip39c2-sp3-governance-core-unit-gov-001/6348)
  * Budget: [MIP40c2-SP3](https://forum.makerdao.com/t/mip40c2-sp3-core-unit-budget-gov-001/6349)
  * Facilitator:[MIP41c4-SP3](https://forum.makerdao.com/t/mip41c4-sp3-core-unit-facilitator-onboarding/6350)
  
For proposals in the RFC (Request for Comments) phase, please see the [latest MIPs Update](https://forum.makerdao.com/t/weekly-mips-update-28/6791).

*There Maker Improvement Proposal (MIPs) Framework provides a clear process for Maker governance to change the Protocol as needed. Learn more about [Maker Improvement Proposals (MIPs)](https://forum.makerdao.com/c/MIPs/14)*

### Smart Contracts

- [MIP21](https://forum.makerdao.com/t/mip21-real-world-assets-off-chain-asset-backed-lender/3917) deployed to Kovan.
- UNI-V2-DAI-USDT getting added to the mainnet this week.
- Spending a few hours a week on [MIP22](https://forum.makerdao.com/t/mip22-centrifuge-direct-liquidation-module/3930).
- [MIP45 (Liq 2.0)](https://forum.makerdao.com/t/mip45-liquidations-2-0-liq-2-0-liquidation-system-redesign/6352) Updated and formally submitted
- Welcome back, @kurt_barry!!

### Oracles

- Partnering with DyDx and launching Starkware Update to Oracles, the first foray into L2. :tada:

### Risk

- Parameters proposed for [ETH-C Vault Type](https://forum.makerdao.com/t/eth-c-risk-parameters/6684).
- Holding off on adding a lower LR WBTC vault.
- Dust parameter signal introduced due to cost of liquidations
- Recommending a 1B DAI DC for PSM-USDC-A.
- [Proposal for changing Flip Auctions](https://forum.makerdao.com/t/flip-auctions-parameter-adjustment-proposal/6732) based on this week’s liquidations.

### Real-World Finance 

- [Updated accounting frontend on Dune](https://explore.duneanalytics.com/public/dashboards/2e3d8Sn0mmvJFNx1x2jQsIBLl9WPOj8gTqOXzBcz), the query is getting quite large, and we’re exploring another option.
- Working on [MIP6 Application](https://forum.makerdao.com/t/mip6-uprets-solarx-reits-mortgage-loan/6718) with Solar X REIT.

## Current Events

### Core Unit Launch Pod Sessions

[The latest call series](https://forum.makerdao.com/t/core-unit-launch-pod-sessions-session-1-growth-core-unit/6711) at Maker focusses on new and developing Core Units. The series will give new units a chance to showcase what they intend to do and get feedback from the community before submitting their proposals. Join us this Wednesday at 18:00 UTC to hear @Nadia talk about the [Growth Core Unit](https://forum.makerdao.com/t/mip39c2-sp4-growth-core-unit-gro-001/6715).

### The MakerDAO Community Art Contest

Artists are given a chance to win Dai and have some featured artwork at MakerDAO by creating a visual artwork based on one of the original [MakerDAO Core Principles.](https://community-development.makerdao.com/en/learn/MakerDAO/core-principles/)

## State of the Peg

![Peg](https://i.imgur.com/5i9JlGK.png)

- DAI peg is holding steady even in the face of Tuesday's market drop.

![Dai Supply 1](https://i.imgur.com/exccuQH.png)

![Dai Supply 2](https://i.imgur.com/vR62bTp.png)

- This week's Urgent Executive vote is the first step in reducing USDC's impact on the MakerDAO portfolio. Since there was quite the [velocity to deleveraging](https://vote.makerdao.com/executive/increase-psm-usdc-a-debt-ceiling?network=mainnet#proposal-detail) this weekend, it's a timely catalyst.
- ETH A 1.317 Billion
  - USDC A 422 million
  - WBTC 248 million
  - PSM USDC 247 million 
  - ETH B 49.995 million
  - LINK 33 million
  - YFI 28 million
  - TUSD 26 million
  - PAX 19 million
  - UNI 7 million
  - COMP 6 million
  - ZRX 4.7 million
  - GUSD 4.5 million
  - Most Uni ETH LPs 3 million
  - AAVE 2.4 million
  - BAT 1.8 million
  - LRC 1.469 million
  - MANA 998K
  - renBTC 839K
  - Univ2ETHUSDT 714K
  - Other vaults below 500K (BAL, Univ2LINKETH USDT, USDC B) totaling 263K.

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

- Volume at around $1.075 billion this last week. 
- Average VWAP (Volume-Weighted-Average-Price) places Dai at $1.001.

![ETH Vaults Whale Dominates](https://i.imgur.com/iWxYgsm.png)

The largest position at 440% dominates-ETH vaults collateralization ratio.

![Average CR is 220%](https://i.imgur.com/yW1rt85.png)

- Most other top vaults are well protected, though; only the fourth largest vault is bobbing just above 157%. 

![Liquidation walls 1432](https://i.imgur.com/ZlLzdEB.png)

- Liquidation Walls at $1432 ETH.
    
![](https://i.imgur.com/gYySL9Z.png)

- Three large vaults in LINK have decently protected collateralization ratios.

![Liquidations](https://i.imgur.com/w9M0vgZ.png) 

- That being said, an 18% drawback on LINK would wipe out the second biggest vault.

![ZRX whale](https://i.imgur.com/wFbmvey.png) 

- Last week, we neglected to include the largest vault in ZRX. Sitting at 220% collateralized with a liquidation price of 1.03. The market has been frothy, and ZRX went down by 30% recently so hopefully, the OSM is kind. 🙏

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

## Community

### Maker Forum Deep Dai-ve

- [Could Dai be short squeezed like Gamestop?](https://forum.makerdao.com/t/could-dai-be-short-squeezed-like-gamestop/6746)
    - *A great thread discussing market dynamics and how DAI accruing is different from "short interest." *
- [euroDAI Discussion](https://forum.makerdao.com/t/discussion-eurodai/6521)
    - *A [Declation of Intent](https://forum.makerdao.com/t/mip13c3-sp-declaration-of-intent-eurdai/6766) has officially been filed for pursuing a stablecoin pegged to the Euro. Help shape the process of exploration!*

### Tweet of the Week

https://twitter.com/whalewatchio/status/1365758053937782791

## Meetings and Events

### MakerDAO Open Calls

#### Community Call

- Cancelled this week!
- Tuesdays 9AM PST | 10AM MST | 12PM EST | 5PM UTC | 6PM CET

#### Community Collateral Onboarding

- Bi-weekly Wednesdays at 18:00 UTC | [Zoom](https://us02web.zoom.us/j/82526996403) - Message [#governance-and-risk](https://chat.makerdao.com/channel/governance-and-risk) 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) | [Collateral Status Index](https://forum.makerdao.com/t/collateral-status-index/2231)

#### 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/c/governance/gnr/8) | [Dial-in call link](https://zoom.us/) | [Calendar](https://calendar.google.com/calendar/embed?src=makerdao.com_3efhm2ghipksegl009ktniomdk@group.calendar.google.com&ctz=America/Los_Angeles)
    - [Archives](https://forum.makerdao.com/c/governance/gnr/8) | [Contributing](https://chat.makerdao.com/channel/governance-and-risk)

#### Core Unit Launch Pod Sessions 

- [Session #1: Growth Core Unit](https://forum.makerdao.com/t/core-unit-launch-pod-sessions-session-1-growth-core-unit/6711) - Wednesday March 3rd 18:00 UTC 

### Community Events

- Feb. 15 - March 29: [The MakerDAO Community Art Contest](https://community-development.makerdao.com/en/contribute/contest/)

## Reference Links

Discuss and debate Maker governance in the [Forum](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.*