---
tags: Weekly Relay
---

# Weekly Relay: February 28th, 2022


_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._

> The public PDF version is available [here.](https://pdfhost.io/v/UaNvag4IO_Weekly_Relay__February_22_28_2022)

🍵 Current Events

🗳️ This Week in Governance

🤿 Community Deep Dai-ve

📆 Mark your Calendar

⚓ Useful Links

🎙️ Have Feedback?

## 🍵 Current Events

### Contributor Compensation Discussion Continues

The GovAlpha team has continued exploring directions for improving how participants are rewarded for contributing to the Maker ecosystem.

The series began with [a post](https://forum.makerdao.com/t/off-chain-governance-incentive-objectives/13298), aiming to clarify objectives: What do we hope to achieve with better off-chain governance? GovAlpha believes we should focus on three primary goals:

1. Retaining new community members and compensating their time and energy.
2. Encouraging community members to take the initiative and get more heavily involved in the off-chain portion of Maker governance.
3. Encouraging meaningful forum engagement from Recognized Delegates.

The [next post](https://forum.makerdao.com/t/off-chain-governance-list-of-options-and-recommendations/13373) shifted from objectives to practical solutions. The post outlines seven options, weighing the pros and cons of each one, and proposes two possible plans of action:

Recommendation 1a:

* Slightly increase existing delegate compensation to balance removed access to SourceCred rewards.
* Use the third delegate metric (engagement) input into the existing delegate compensation formula.

Recommendation 1b:

* Create a new SourceCred instance for Recognized Delegates and divert some of the SourceCred budgets to this instance.
* Change the payout formula to 100% recent contributions.

Finally, @LongForWisdom put together an extensive [comparison](https://forum.makerdao.com/t/sourcecred-and-coordinape-tool-comparison/13299) of SourceCred and Coordinape, a similar tool. Areas of comparison include how each tool works and is used, the ease of onboarding new users, how decentralized each tool is, and more.

### Debating the Burn

@krzkaczor published a two-part [series](https://forum.makerdao.com/t/in-defense-of-bigger-surplus-buffer/12875) of [posts](https://forum.makerdao.com/t/against-the-burn/13412) detailing his arguments for why the MKR burn isn't achieving its intended objective of increasing MKR's market price. As an alternative, he argues for increasing the size of the Surplus Buffer—where protocol revenue (DAI) is stored—and using it to invest in longer-term growth initiatives.

The MKR burn has been paused in response to this discussion while the community considers adding a [new parameter](https://forum.makerdao.com/t/rate-limiter-parameter-proposal/13193), `lid,` to the rate limiter mechanism, to make the bidding process more competitive and protecting Maker from low bids. The on-chain [vote](https://vote.makerdao.com/polling/Qmdd4Pg7) is currently underway.

## 🗳️ This Week in Governance

### Maker Improvement Proposals (MIPs)

[Weekly MIPs Update #76](https://forum.makerdao.com/t/weekly-mips-update-76/13493)


RFC and FS Dates for reference and for existing proposals can be seen [on this proposal tracker (WIP)!](https://docs.google.com/spreadsheets/d/1OHZa-f4C2Z8PteZBb1Mfiz-MJn5Ky_PM15mM1QLgIRY/)

February Ratification Polls have just closed today, Monday 28, at 16:00 UTC. Out of eight Ratification Polls, seven passed and one failed. Find more details on by checking out the MIPs update.

Pre-MIP Discussions:

- [Auction-backed DAI](https://forum.makerdao.com/t/auction-backed-dai/13011/11)
- [IAM for Surplus Buffer](https://forum.makerdao.com/t/premip-iam-for-surplus-buffer/11584)
- [Proposal Ideas on the Forum](https://forum.makerdao.com/c/mips/proposal-ideas/21?order=activity)
- [[Pre-MIP] Using Gyroscope to cut through Dai's Gordian knot: its USDC dependency](https://forum.makerdao.com/t/pre-mip-using-gyroscope-to-cut-through-dai-s-gordian-knot-its-usdc-dependency/8865)
- [An RWA style solution to replace the PSM](https://forum.makerdao.com/t/an-rwa-style-solution-to-replace-the-psm/8705)

### Executive Vote

[GUSD PSM Maximum Debt Ceiling Increase, MakerMan Retroactive Delegate Compensation - February 25, 2022](https://vote.makerdao.com/executive/template-executive-vote-gusd-psm-maximum-debt-ceiling-increase-makerman-retroactive-delegate-compensation-february-25-2022?network=mainnet#proposal-detail)

This executive proposal passed, and the following changes were made to the Maker Protocol:

#### GUSD PSM Maximum Debt Ceiling (line) Increase

As per this [governance poll](https://vote.makerdao.com/polling/QmWPYU9c), the [Maximum Debt Ceiling (`line`)](https://manual.makerdao.com/module-index/module-dciam#maximum-debt-ceiling-line) of the GUSD PSM was increased by 50 million DAI from **10 million DAI** to **60 million DAI**.

For further information, please see the initial Signal Request on the MakerDAO forum [here](https://forum.makerdao.com/t/signal-request-raise-gemini-dollar-gusd-psm-debt-ceiling-to-60-million-dai/12961).

#### MakerMan Retroactive Compensation for November 2021

As per this [governance poll](https://vote.makerdao.com/polling/QmR2DX4L), a one-off retroactive payment was made to MakerMan as a result of changes to the ongoing Delegate Compensation Trial, detailed below.

- **8,245 DAI** transferred to [MakerMan](https://vote.makerdao.com/address/0x22d5294a23d49294bf11d9db8beda36e104ad9b3) at [0x9AC6A6B24bCd789Fa59A175c0514f33255e1e6D0](https://etherscan.io/address/0x9AC6A6B24bCd789Fa59A175c0514f33255e1e6D0).

This payment covers work done as a Recognized Delegate during November 2021 that did not qualify for compensation at the time, but after changes to the Delegate Compensation Trial, it now qualifies for compensation.

For further information, please see the initial Signal Request on the MakerDAO forum [here](https://forum.makerdao.com/t/signal-request-makerman-retroactive-delegate-comp/13051).

### Active Governance Polls

| Poll Name | Vote | Discussion |
| :-------- | :--: | :--------: |
| PPG - Open Market Committee Proposal | [Vote Ends 03/03 at 4 PM](https://vote.makerdao.com/polling/QmPhbQ3B?network=mainnet) | [Discussion](https://forum.makerdao.com/t/parameter-changes-proposal-ppg-omc-001-2022-02-24/13434) |
| Adding Rate Limiter to Flap Auctions | [Vote Ends 03/03 at 4 PM](https://vote.makerdao.com/polling/Qmdd4Pg7?network=mainnet) | [Discussion](https://forum.makerdao.com/t/rate-limiter-parameter-proposal/13193) |

*Check out [February 21st's](https://forum.makerdao.com/t/weekly-relay-february-15-21-2022/13348) issue of Weekly Relay for more information on the most recently concluded polls.*

### Community Greenlight Polls

| Collateral | MIP9 Poll | MIP6 Application |
| :--------- | :-------: | :--------------: |
| PUNK (NTFX CryptoPunk) | [Ends 3/07 4PM UTC](https://vote.makerdao.com/polling/QmWT8dH6?network=mainnet#poll-detail) | [Application](https://forum.makerdao.com/t/punk-collateral-onboarding-application/12992) |

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

### Active Signal Requests

**[Implement Governance Mining Trial](https://forum.makerdao.com/t/signal-request-implement-governance-mining-trial/13271)**
*Signal Request Ends March 2nd*
In recent months, a decline in governance participation has been [brought to light](https://forum.makerdao.com/t/improving-governance-participation-rate-at-makerdao/11706). Unfortunately, attracting engaged, informed voters is a problem that has largely gone unsolved. @GFXlabs believes it is time to take an actionable approach through a governance mining trial to help improve voting participation to compare polls treated with potential payments vs. polls before and after the treatment and the difference between treated/untreated and governance participation one year earlier. The initial trial is aimed at polls, with more straightforward metrics to monitor.

The design of this trial includes an assurance payment of .1 MKR provided to any address that contributes ≥ 1 MKR in a non-abstain vote on at least one low-turnout poll. A maximum of .1 MKR may be awarded to any address for any individual closing date of this trial. All MKR rewards will be sourced from the MakerDAO treasury. A budget of 8 MKR will be reserved for this trial. This trial will be in effect until the MKR budget is exhausted or after six weeks, whichever occurs first. This design offers the potential for payouts without guaranteeing that MakerDAO will incur expenses and provide a meaningful reward to smallholders willing to provide a public good at their own expense.

@GFXlabs agrees to take management of the reporting and administration of this trial. They will track and provide public updates on which addresses (if any) are eligible for assurance payments following the close of each trial date. @GFXlabs will provide a written report (via forum post) and oral report (if desired) on a Governance & Risk call after the close of the trial.

> Pros:
>
>- Potentially increases governance participation, particularly among smaller holders
>- Offers payments only when marginal increases in participation are needed
>- Allows experimentation with a novel mechanism without committing to large or ongoing payments
>- Trial will be administered by GFX Labs to avoid adding to the governance burden of core units

>Cons:
>
>- Could incur a maximum expense of 8 MKR and 1000 DAI
>- May not generate conclusive results
>- If chosen to be extended or made permanent, this program would likely require an increased workload to administer on an ongoing basis
>- Will require some measure of marketing/communication to make MKR holders aware of the trial program
>- If the assurance payment amount of .1 MKR is too low to attract voters to polls, then rewards would accrue to those already voting rather than the marginal voter

@GFXlabs is asking the community whether MakerDAO should implement the Governance Mining Trial.

**[Allocate 20M to Protocol-Owned Uniswap V2 MKR/DAI LP](https://forum.makerdao.com/t/signal-request-allocate-20m-to-protocol-owned-uniswap-v2-mkr-dai-lp/13150)**
*Signal Request Ends March 3rd*
In response to a recent discussion, @psychonaut believes the simplest method for improving MKR liquidity is to add protocol-owned Dai/MKR LP shares to UniV2. He asks the community whether Maker should allocate 20M to a protocol-owned UniV2 MKR/Dai LP and presents his argument that the pros outweigh the cons:

>Pros:
>- Simple
>- No need to wait on sweeping tokenomic redesigns that have had difficulty finding consensus (e.g. [Sagittarius Engine](https://forum.makerdao.com/t/sagittarius-engine/10852), [gbMKR](https://forum.makerdao.com/t/signal-request-gbmkr-a-proposal-to-benefit-long-term-mkr-holders/12756), etc.)
>- Mostly orthogonal to MKR [flap auctions](https://manual.makerdao.com/parameter-index/surplus-auction)
>- Helps identify a minimum and maximum MKR price for both flap and flop auctions
>- Automatically buys low, sells high and captures the spread
>- Obtains some return on otherwise idle capital sitting in the surplus buffer
>- Extremely gas efficient (i.e., set it up and forget about it)
>
>Cons:
>- Potentially interferes with the ability to raise large amounts of DAI from MKR sales
>- Trading strategy is nearly the opposite of [flop auctions](https://manual.makerdao.com/parameter-index/debt-auction)

**[Bring Back the MKR Burn Part II](https://forum.makerdao.com/t/signal-request-bring-back-the-mkr-burn-part-ii/13146)**
*Signal Request Ends March 4th*
@ultraschuppi states that the recent executive vote to temporarily disable Surplus Auctions and MKR burn had intentions to return to the [original `lerp` mechanic](https://vote.makerdao.com/polling/QmUqfZRv?network=mainnet#poll-detail). However, an on-chain poll added the Rate Limiter to the Flapper Module.

In response, Schuppi asks the community whether the protocol should return to the previous partial burning configuration as agreed in November, but with the following conditions:

- The [Rate Limiter](https://forum.makerdao.com/t/rate-limited-flapper/13056) has been installed on the mainnet; this will take a couple of weeks.
- An [initial configuration](https://forum.makerdao.com/t/rate-limited-flapper/13056#next-step-setting-lid-3) for the Rate Limiter has been set.

**[Fund Ambassadors Program Pilot](https://forum.makerdao.com/t/signal-request-fund-ambassadors-program-pilot/13199)**
*Signal Request Ends March 4th*
The Ambassador Program, which provides non-English-speaking communities with resources and educational materials, had its funding disrupted by the [offboarding of MKT-001.](https://vote.makerdao.com/polling/QmYk1XN5?network=mainnet#poll-detail) @Kat took the initiative to spearhead the Program without the attachment of a Core Unit and is seeking 25,000 DAI to complete the pilot and associated projects over the next three months. She is asking the community whether MakerDAO should fund the Ambassador Pilot Program.

## 🤿 Community Deep Dai-ve

### Tweet of the Week 😎

https://twitter.com/mdudas/status/1498128590973640710

### Forum Insight

[Flipside Crypto Delegate Platform](https://forum.makerdao.com/t/flipside-crypto-delegate-platform/13456)

Welcome to @fig and his governance team at [Flipside Crypto](https://flipsidecrypto.xyz/), who have thrown their hats into the ring and announced their recognized delegate platform. Flipside Governance was established in September 2021 to directly support, contribute to, and drive participation in partner communities, helping improve the efficiency of this critical piece of protocol health. The team operates in various DAOs and communities, such as Aave, SushiSwap, ENS DAO, OlympusDAO, and many others. Flipside Crypto presents some of its accomplishments to show its value as a delegate in the MakerDAO community.

Flipside Crypto believes there is plenty of room for improved proposals, a greater understanding of the governance landscape, and strong relationships with key players and stakeholders.

The team believes governance is best achieved through:

- Proper education (what votes mean and why)
- Fairly distributed voting power (quadratic voting, voting rewards)
- Engaged, rewarded community members

Flipside aims to represent the views of a range of users and provide unique analytics to justify their data-driven decisions.

As delegates, Flipside Crypto promises:

- Constant monitoring of votes and participation in each vote
- Open discussion and contribution to the DAO forum and Discord
- Transparency about when they vote and how they vote
- A shared commitment to the future success of Maker

Conflicts of Interest:

- ENS Delegation
- Paladin Delegation/Transferability Committee
- Aave Grants

_Also, check out the latest [Forum at a Glance](https://forum.makerdao.com/tag/forum-at-a-glance) post for additional forum insights._

### Articles

**[New Silver Launches DeFi Securitized Mortgage Fund for Real-World Asset Investing](https://www.yahoo.com/now/silver-launches-defi-securitized-mortgage-120500996.html)**
>*[New Silver](https://pr.report/Zp2ydJYg), a leading technology company that provides fast financing to real estate investors, today announced the launch >of its new decentralized finance (DeFi) securitized mortgage fund ("Fund"). The Fund will allow accredited investors in the U.S. and worldwide to >gain exposure to a pool of short-term mortgages collateralized by residential, U.S.-based real estate.*
>
>*In an industry first, accredited investors can generate income by investing in a revolving pool of short-duration mortgages that have been securitized on the >blockchain using liquidity from DeFi, without having to go through the complexities of transacting on the blockchain. The Fund makes investing, redeeming, and >collecting quarterly income easy for investors who do not want to transact on the blockchain.*
>
>*New Silver's securitized asset pool is built on Tinlake, a DeFi protocol developed by Centrifuge to allow access to leverage and significant liquidity from >MakerDAO, Aave, and other DeFi protocols. With this novel securitization approach and utilizing the technological advantages of the blockchain, the Fund has a >14% hurdle rate and aims to return a 17-22% yield annually.*
>
>*This novel approach has the mechanics of a traditional MBS securitization. Each loan is held in a bankruptcy-remote SPV and then 'minted' on the blockchain as >a Non-Fungible Token (NFT), creating a digital representation of the asset. The assets are then locked into the DeFi pool, providing New Silver liquidity and >generating income for investors. A third-party servicer collects payments from borrowers and distributes them to the SPV.*
>
>*"DeFi is improving the way financial transactions are done, including asset-based securitizations," said John Coury, Head of Capital Markets at New Silver. >"With this first of a kind approach, accredited investors can participate in this new economy and its benefits, without having any blockchain knowledge and >with no cryptocurrency exposure risk."*
>
>*Investors interested in New Silver's decentralized finance securitized mortgage fund will have access to multiple DeFi protocols that do not correlate to >central bank rate adjustments and a significant amount of potential liquidity. The fund will also handle all operational needs related to cryptocurrencies, >exchanges, custody, transactions, and tax reporting, making investors more seamless.*
>
>*New Silver is the first "real-world asset" lender to partner with a DeFi protocol. To date, the company has originated more than $90 million of loans with more >than $25 million of loans securitized on the blockchain, creating the largest known DeFi pool or securitized real-world assets.*
>
>*For more information, please visit: [https://newsilver.com/defi/](https://pr.report/ErOivyDJ).*
>
>About New Silver Lending LLC:\
>*New Silver is a technology company that provides fast financing to real estate investors who focus on fix and flip residential projects. New Silver's >proprietary software accelerates, automates, and streamlines loan originations while using data to reduce default risk. Additionally, New Silver's FlipScout >tool uses intelligence to help find real estate investment projects with the highest ROI. For more information please >visit [https://www.newsilver.com](https://pr.report/1bS5T2pZ)*

## 📆 Meetings and Events

### Last Week's Call Recordings

- Governance and Risk #179 | [Video](https://www.youtube.com/watch?v=71jiZxW2cHE&t=789s)
- AMA: Centrifuge Team | [Video](https://www.youtube.com/watch?v=AWFKI4SRIrI)

### Upcoming Calls

- Meet Your Delegate #10 - Doo | 2022-03-02T18:00:00Z
- [Forum](https://forum.makerdao.com/t/meet-your-delegate-10-doo/13248) | [Join Link](https://us02web.zoom.us/j/86837152053?pwd=dE9lWXFWaEt6T005a3hrUUcwQzhXZz09)

#### Governance & Risk

- [Join Link](https://zoom.us/j/697074715) | [Agenda](https://forum.makerdao.com/c/governance/gnr/8) - Thursdays at 16:00 UTC

#### Core Unit Office Hours

- [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/nio-jrqq-guu) | Governance Communications - Fridays 18:00 UTC

## ⚓ Useful Links

[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 auctions 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.

### 🎙️ 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

@Artem_Gordon
@nothsa

---
tags: State of Dai
---

# State of Dai: February 8th, 2022


*Hi everyone, thanks for checking out the State of Dai. Now separate from the Weekly Relay with the objective to scale and improve all the information you need for your Dai escapades!*

> The public PDF version is available [here.]()


- In case you have been under a rock in the Baltic Sea, there is a hectic environment across all markets. This frenetic condition hit the peg most dramatically on ETH/DAI pairs.
- *Before* a market wobble on the 24th, DAI traded at its largest premium.


- With spikes in volume twice over the 24th, the peg held relatively stable.
- 1.5 billion in DAI trading volume over the last week.


- Over the past week, any slippage has been upwards rather than far below peg.


- A Slight reduction in Uniswap V3 volume but a healthy spike in TVL on the DAI pools.


- Compound and curve have the highest share of DAI in the wild. (627 million and 1.6 billion respectively).


- DAI supply had a slight drop below the 10 billion mark. With a wobbly market, there was a slight uptick in PSM-USDC usage.


- Over the past week, that supply reduction was dominated by ETH-A vaults closing (~40 fewer vaults), and 11 million less WBTC (closed 14 vaults). Thanks to @risk for the new endpoint. :wink:


- Net burn of -531 million.



- PSM USDC 5.2 billion
- ETH-A 1.58 billion
- WBTC-A 836 million
- PSM USDP 498 million
- GUNI DAI-USDC (0.01%) 328 million
- ETH-C 292 million
- wstEth 121 million
- GUNI DAI-USDC (0.05%) 67 million
- UniV2DaiUSDC 65 million
- LINK 65 million
- ETH-B 47 million
- MATIC-A 19 million
- YFI 15 million
- WBTC-C 14 million
- NSDROP 13 Million
- UniV2UsdcEth 9.2 million
- renBTC 4.9 million
- MANA 4.7 million
- WBTC-B 3.4 million
- FFT1-DROP 2.6 million
- HTC-DROP 1.63 million
- RWA001-A 1.4 million
- UNI 1.04 million
- 6S Capital 1.42 million
- Other vaults below 500K (UniV2WBTCEth, UniV2DaiEth, UniV2UniEth, PSM GUSD) at $1.2 million.
- Aave D3M back to 0.


- Despite rebalancing and removing some larger vaults, the debt share is still mostly ETH-A.


- Liquidation drops hit at 29%.


- That hypothetical 30% drop is when liquidations hit low-risk buckets, topped by collateral in WBTC-A and wstETH.

[daistats.com](daistats.com) | [makerburn.com](makerburn.com) | [maker.blockanalitica.com](maker.blockanalitica.com)

### 🎙️ 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

@twblack88