--- tags: Weekly Relay --- # July 26 - August 1, 2022 ![](https://i.imgur.com/aHeKXjF.png) _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/5ZPhCKk5N_Weekly_Relay_July_26_Aug_1_2022) --- ## **CURRENT EVENTS** <!-- Alec --> #### **[MIP-6 Declaration of Intent – Invest in short-term bonds – Proposal for implementation](https://forum.makerdao.com/t/mip-6-declaration-of-intent-invest-in-short-term-bonds-proposal-for-implementation/16185)** @backed-finance presents a Collateral Onboarding application for tokenized, short-term Treasury bonds held under Swiss law. The proposal points to [MIP13c3-SP12](https://forum.makerdao.com/t/mip13c3-sp12-declaration-of-intent-invest-in-short-term-bonds/13084), which ratified a 'Declaration of Intent' for the DAO to invest in such bonds. Under the proposed terms, Backed Finance would create "on-chain, permissionless securities backed 1:1 with an underlying, short-term bond ETF" to be held by a secure, third-party custodian in Switzerland. Market participants would then sell these tokenized bonds to the DAO. The preliminary concept (subject to RFC) would utilize a "modified PSM implementation," incentivizing market participants to sell tokenized ETFs in exchange for newly minted DAI. Per the MIP, all trading would be liquid, permissionless, and require no active management or KYC on the part of the protocol. <small> **Summary of the proposed asset** ⮛</small> > ***Token**: Backed iShares $ Treasury Bond 1-3yr UCTIS ETF (Accumulating)* > ***Contract Address**: [0x9ABB4E7f4ee96cA58F156338640aEd031188E5E1](https://etherscan.io/address/0x9abb4e7f4ee96ca58f156338640aed031188e5e1)* * Its subsidiary, Backed Assets, would tokenize IBTA (USD denominated Treasury bonds) securities on the Ethereum chain, granting the protocol access to passive revenue in a "fully permissionless way." * The asset is "fully backed by the [linked underlying](https://www.blackrock.com/ch/individual/en/products/287340/ishares-treasury-bond-1-3yr-ucits-etf). * The token is an ERC-20, entitling its holders to the right to redeem it for fiat through the issuer at any time (during standard business hours). * The token is a new issuance and would begin with a circulating supply of zero on-chain. * As the asset is an ERC-20, transactions would also be settled on-chain. *Note: As the underlying is a conventional security, it's inherently based on a trusted system, which operates as follows:* The underlying capital is purchased through a Broker and placed in a custody account. This custody account is then supervised by an unrelated third party (referred to as the "Security Agent"), who has the authority to "block the account and liquidate assets to repay holders the value of their investment." > ***Current Custodian:** ISP Securities AG, Zurich, Switzerland* > ***Current Security Agent:** Security Agent Services AG, Baarerstrasse 75, 6300 Zug, Switzerland* <small> **Summary of Proposed Use Cases** ⮛</small> * The DAI generated through this vault would be distributed to its depositors at a slight spread. * Following oracle price updates, "the price change should mint new DAI directly into the surplus buffer." * The vault's Debt Ceiling would be calculated as a percentage of the DAO's stablecoin holdings to allow the volume to shift toward the proposed ETF token. **Backed Finance proposes an initial Debt Ceiling of $50M.** *Given the potential of the proposal, its generated quite a bit of discussion. If you're looking to weigh in or follow the debate, the post can be found [**here**](https://forum.makerdao.com/t/mip-6-declaration-of-intent-invest-in-short-term-bonds-proposal-for-implementation/16185/2).* --- #### **Delegate Participation & Compensation** Four delegation-centric proposals made their way to the Forums last week. GovAlpha Facilitator, @Patrick_J, posted three frameworks to define and streamline the process for delegate participation and compensation. The fourth, via @GFXlabs, proposes an amendment period for Recognized Delegate participation metrics. [**MIP-77: Delegates in the Maker Protocol**](https://forum.makerdao.com/t/mip77-delegates-in-the-maker-protocol/16905) aims to establish a baseline definition of the Recognized Delegate role and provide a framework, or "foundational MIP," upon which future iterations can be implemented. <small> **Summary of Roles & Responsibilities** ⮛</small> Per the proposal, the role of a Recognized Delegate can be broken down into two parts: > 1. *To express an opinion on on-chain Governance processes by casting regular votes.* > 2. *To communicate their voting decisions and the rationale behind them.* Beyond this, Recognized Delegates may take on additional roles and responsibilities as they see fit. <small> **Summary of Participation & Communication Metrics** ⮛</small> Recognized Delegates are expected to vote on Executive Proposals or voice their explicit opposition within *72 hours* of their posting. Failing to vote for an Executive would not count against a Recognized Delegate's participation metrics if sound reasoning for the absence is provided (as assessed by Governance Facilitators). Further, Recognized Delegates would be expected to communicate their vote within *seven days* of a Governance Poll's conclusion. <small> **Summary of Regonized Delegate Metric Reset** ⮛</small> Under the proposed framework, a Recognized Delegate could request a reset of their tracked metrics if approved by a majority of Governance Facilitators. If approved, a Recognized Delegate may choose any date within the last three months as the new "start date" for tracking personal metrics. *These requests could only be made once per year.* [**MIP-78: Recognized Delegate DAI Compensation**](https://forum.makerdao.com/t/mip78-recognized-delegate-dai-compensation/16906) seeks to define the DAO's process for awarding DAI compensation to Recognized Delegates. The Maker Protocol compensates Recognized Delegates to incentivize their participation in the system of governance. In return, the Protocol receives a diverse group of individuals capable and incentivized to study proposals, cast votes, and communicate their reasoning to a public forum. <small> **Summary of MIP-78's Proposed Goals** ⮛</small> * DAI compensation should positively correlate to voting weight. * One Recognized Delegate’s compensation should be independent of another's compensation. * This compensation would be positively skewed toward Recognized Delegates with smaller voting weight to encourage the recruitment of new Recognized Delegates. * A cap on the maximum DAI compensation a single delegate can receive should be imposed. * Recognized Delegates with high voting weights should receive enough compensation from having the option to hire an assistant(s). * The system should allow for and appropriately compensate Recognized Delegates acting as part of a team or group. <small> **Initial Parameters if Ratified** ⮛</small> ![](https://i.imgur.com/CkcJ2Ja.png) [**MIP-79: Recognized Delegate MKR Compensation**](https://forum.makerdao.com/t/mip79-recognized-delegate-mkr-compensation/16907/12) shares a similar goal as the above but is geared toward the growth and retention of talented Recognized Delegates. The proposed system aims to encourage a "longer-term" mindset that would more fully align Recognized Delegates with the MKR holders that delegate to them. If the MIP passes as proposed, MKR will be distributed to Recognized Delegates using DssVest to an address of their choice. Streams must have a twelve-month duration and a cliff date of twelve months. Governance Facilitators will post the amount of MKR to be streamed, stream dates, and cliff dates to the Maker Governance Forum in advance of the relevant Executive Vote. <small> **How would vesting be calculated?** ⮛</small> > "Once a Recognized Delegate has been active for six months, in effect, six months since they completed the steps to become a Recognized Delegate defined in [MIP77c2](https://forum.makerdao.com/t/mip77-delegates-in-the-maker-protocol/16905#mip77c2-becoming-a-recognized-delegate-11) and received their first delegated MKR tokens, the Governance Facilitators will calculate the total DAI compensation the Recognized Delegate has received in that time. > > This value will be divided by the 12-month rolling average price of the MKR token in DAI. This will calculate the amount of MKR vesting to which the Recognized Delegate is entitled." [**MIP4c2-SP24: Amend Measurement Period For Delegate Participation Metrics**](https://forum.makerdao.com/t/mip4c2-sp24-amend-measurement-period-for-delegate-participation-metrics/16904) proposes to amend the feedback loop for delegate participation, which is a key variable in the calculation of their compensation. If passed, the proposal would amend the language ratified in [MIP61c2](https://mips.makerdao.com/mips/details/MIP61#a-solution). The proposed alterations can be found [**here**](https://forum.makerdao.com/t/mip4c2-sp24-amend-measurement-period-for-delegate-participation-metrics/16904#changes-6). --- #### **[Clarifications about my take on LOVE vs. MetaDAO and a diagram of approval voting](https://forum.makerdao.com/t/clarifications-about-my-take-on-love-vs-metadao-and-a-diagram-of-approval-voting/16920)** > With a set of broadly supported core system delegates, we can start untangling this mess without every single vote being split down the middle based on essentially political lines. MakerDAO co-founder @nikolai made a post clarifying his views on the LOVE and MetaDAO proposals. In short: "I am not in favor of the MetaDAO proposal any more than I am in favor of the LOVE proposal." @nikolai believes that Maker governance is largely split down the middle, resulting in contentious vote after contentious vote and a roster of Delegates lacking broad support due to the current simple majority voting system. He argues that before making any serious changes to the governance system, Maker needs to address this "dysfunctional" governance situation by reducing complexity and clarifying how the current voting system works. --- #### **[Meet Your Delegate #17](https://forum.makerdao.com/t/meet-your-delegate-17/16932)** <!--- Ashton --> The Meet Your Delegate public call #17 will take place this Wednesday at 1 pm UTC. For this session, Delegate Candidate @CodeKnight will present their [platform](https://forum.makerdao.com/t/codeknight-delegate-platform/16806) and field questions from the audience. Continuing from the previous episode, @pvl will also be hosting a Q&A (check out his [platform](https://forum.makerdao.com/t/pvl-delegate-platform/16022) and [slides from the last call](https://readymag.com/u1204790250/3792132/)). [Zoom](https://us02web.zoom.us/j/82398271372?pwd=Z2ZGNjExb0JVcEk3Sk4ybGZJRjR0Zz09) Meeting ID: 823 9827 1372 Passcode: MYD17 #### **[MakerDAO Actual Expenses vs Budget - June 2022](https://forum.makerdao.com/t/makerdao-actual-expenses-vs-budget-june-2022/16912)** The Strategic Finance Core Unit (SF) has released the [Actual Expenses vs. Budget report](https://docs.google.com/spreadsheets/d/17QHwAjmuh2ebZZgZpyg4QjIiboDzlYu0/edit#gid=317074082) for June. Highlights include: * Reported DAI expenses incurred were 2.9M in May, 0.6M lower than forecast. * Forecasted expenses are expected to stabilize to around 3.2M/month by July, a 40M annual run-rate (slightly lower than forecasted in April). * SF has started proactive work around reducing burn rates to mitigate the impact of the bear market on the protocol (follow the `bear-prep` tag on the forums to find these initiatives). --- #### **[What happens when you send 1 DAI](https://www.notonlyowner.com/learn/what-happens-when-you-send-one-dai)** This blog post doesn't come from the forums, but it's too valuable *not* to share. Learn how DAI transactions work at the nuts-and-bolts level, down to how the transaction is executed in the Ethereum Virtual Machine. ![](https://i.imgur.com/yeS1wpI.png) This piece is quite technical, but concepts are well explained, and plenty of background material is provided to fill any knowledge gaps. --- ## This Week in Governance ### **[Weekly MIPs Update #98](https://forum.makerdao.com/t/weekly-mips-update-98/16940)** *Ratification polls, proposals, and pre-MIP discussions.* --- ### Executive Vote(s) Back to voting with this week's Executive, which is currently up on the Portal and awaiting your participation: [**Onboarding Real World Asset Vaults**](https://vote.makerdao.com/executive/template-executive-vote-onboarding-real-world-asset-vaults-july-29-2022 "View executive details") -- _Posted on July 29, 2022. Expires on August 28, 2022, 13:55 UTC._ If this executive proposal passes, the following **additions** will be made to the Maker Protocol: - Societe Generale -- Forge (OFH) will be onboarded as a new vault type, RWA-008. - Huntingdon Valley Bank (HVBank) will be onboarded as a new vault type, RWA-009. If this executive proposal passes, the following **changes** will occur within the Maker Protocol: - [Amendments to the letter agreements](https://forum.makerdao.com/t/huntingdon-valley-bank-transaction-documents-on-permaweb/16264/8) between RWA Foundation and various parties for the RWA-009 (HVBank) legal construction. - 25 million DAI will be drawn down in the RWA-009 (HVBank) vault. > :mag_right: _Please review the following forum threads containing information about **RWA-008 (OFH)** & **RWA-009 (HVBank)** to inform your position before voting:_ <details> <summary>RWA-008 (OFH)</summary> > - [Initial Collateral Application](https://forum.makerdao.com/t/security-tokens-refinancing-mip6-application-for-ofh-tokens/10605) > - [Real-World Finance Core Unit Risk Evaluation](https://forum.makerdao.com/t/sg-forge-socgen-risk-assessment/15638) > - [Additional Risk Assessment - LOVE](https://forum.makerdao.com/t/sg-forge-socgen-risk-assessment/15638/14) > - [Collateral Engineering Services Core Unit Evaluation](https://forum.makerdao.com/t/rwa008-ofh-mip21-token-ces-domain-team-assessment/15239) > - [Oracles Core Unit Evaluation](https://forum.makerdao.com/t/rwa-008-ofh-collateral-onboarding-oracle-assessment/15268) > - [SocGen Transaction Documentation](https://api.ipfsbrowser.com/ipfs/get.php?hash=QmW1UBVjPtHDo42oNzG2vspwggyeBfENS1xsPtpKLyDBvb) > - [Delegated Committee Proposal](https://forum.makerdao.com/t/real-world-finance-decision-making-and-delegated-committee-proposal/15276) </details> <details> <summary>RWA-009 (HVBank)</summary> > - [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) </details> --- ### Active Poll(s) Less than three days to cast your vote on these Polls: | Poll Name | Discussion |Start Date | End Date | |:---------:|:----------:|:---------:|:--------:| |[PPG - Open Market Committee Proposal](https://vote.makerdao.com/polling/QmfMRfE4)| [Discussion](https://forum.makerdao.com/t/parameter-changes-proposal-ppg-omc-001-28-july-2022/16895)|August 1, 2022 16:00 UTC| August 4, 2022 16:00 UTC| |[Maker Teleport Deployment on Starknet and Associated Risk Parameters](https://vote.makerdao.com/polling/QmZxRgvG)| [Discussion](https://forum.makerdao.com/t/request-to-poll-for-maker-teleport-deployment-on-starknet-and-associated-risk-parameters/16844)|August 1, 2022 16:00 UTC| August 4, 2022 16:00 UTC| |[Tactical Re-allocation Process for Budget Adjustments](https://vote.makerdao.com/polling/QmRLsRRA)| [Discussion](https://forum.makerdao.com/t/signal-request-budget-re-allocation-core-unit-accountability-framework/16788)|August 1, 2022 16:00 UTC| August 4, 2022 16:00 UTC| > :new: [**2022-08-02 Governance Poll Clarification**](https://forum.makerdao.com/t/2022-08-02-governance-poll-clarification/16952) > _"It was brought to GovAlpha’s attention earlier today that the wording of a Governance Poll posted yesterday was potentially misleading"._ > :mag_right: _Please check GovAlpha's [addendum](https://github.com/makerdao/community/pull/1889/files) on [Tactical Re-allocation Process for Budget Adjustments](https://vote.makerdao.com/polling/QmRLsRRA). You can also read a brief discussion about what transpired on [Schuppi's Delegate Platform](https://forum.makerdao.com/t/schuppi-delegate-platform/11193/100#tactical-re-allocation-process-for-budget-adjustmentshttpsvotemakerdaocompollingqmrlsrrapoll-detail-threadhttpsforummakerdaocomtsignal-request-budget-re-allocation-core-unit-accountability-framework16788-2)._ --- ### Community Greenlight Poll(s) [_Put your lights on_](https://youtu.be/KCBS5EtszYI)--or not--for this Greenlight: | Greenlight Poll | Vote Breakdown | Start Date | End Date | | :-------------: | :------------: | :--------: | :------: | | [MIP9 Community Greenlight Poll - Pando (Pando Investment Grade Climate Assets)](https://vote.makerdao.com/polling/QmawHstd) |![](https://i.imgur.com/1AHKzhO.png)|August 1, 2022, 16:00 UTC| August 15, 2022, 16:00 UTC | --- ### Finished Poll(s) Greenlight was granted for the Backed Finance Short-Term Bond: | Greenlight Poll | Vote Breakdown | End Date | | :-------------: | :------------: | :-------:| | [Community Greenlight Poll - bIBTA (Backed Finance Short-Term Bond ETF)](https://vote.makerdao.com/polling/QmbDbzqW) |![Breakdown](https://i.imgur.com/sXeybHx.png)|August 01, 2022, 16:00 UTC| --- ## **Meetings and Events** <!-- Artem --> **Last Week's Call Recordings:** - Meet Your Delegate #16 - ft. pvl | [Forum](https://www.youtube.com/redirect?event=video_description&redir_token=QUFFLUhqbFVNZUhOUFlveW1lNmVXZ2hIZDkwTFpZM2NDZ3xBQ3Jtc0tuWm9lS2JOQWsyMC1IX2FkcXRFcldOa3o3eXl4aVFsb01HWWlLMnZpVGZEYS01akwwZUtLd0p3ZlVoSVUzVFBMdjdTMjBmRDlScDRieVRkeXo0QnNVcVZ3R1FBZW5id2RQbDRBMUxxMW1yT0RGTFp0RQ&q=https%3A%2F%2Fforum.makerdao.com%2Ft%2Fmeet-your-delegate-16-pvl%2F16206&v=yIHFRJDA7cM) | [Recording Part 1](https://youtu.be/yIHFRJDA7cM) - Open Decentralized Voter Committee | [Forum](https://forum.makerdao.com/t/endgame-dvc-meeting-july-20-budget-reductions-and-growth-marketing-cu-consolidations/16451) | [Recording](https://www.youtube.com/watch?v=FNe7DNYS6PA) - Delegate Office Hours | [Discord](https://discord.com/channels/893112320329396265/989856974747349112) | [Recording](https://www.youtube.com/watch?v=LuuqBZcCG_s) - Governance and Risk - Ep. 201 | [Forum](https://forum.makerdao.com/tag/pubcall-:-governance-and-risk) | [Recording](https://www.youtube.com/watch?v=ADYHWUbFUKw) **Upcoming Calls:** - Meet Your Delegate #17 - ft. CodeKnight & pvl | [Forum](https://forum.makerdao.com/t/meet-your-delegate-17/16932) | [Join Link](https://www.google.com/url?q=https://us02web.zoom.us/j/82398271372?pwd%3DZ2ZGNjExb0JVcEk3Sk4ybGZJRjR0Zz09&sa=D&source=calendar&ust=1659880182562101&usg=AOvVaw2msC3KUOeGUer2_N2F1pgF) | [date=2022-08-03 time=13:00:00 timezone="UTC"] - Open Decentralized Voter Committee | [Join Link](https://www.google.com/url?q=https://us02web.zoom.us/j/89326394914&sa=D&source=calendar&ust=1659880182562101&usg=AOvVaw3gr4l98ZrvNKq9S7A-Upry) | [date=2022-08-03 time=19:00:00 timezone="UTC"] - Delegate Office Hours | [Forum](https://forum.makerdao.com/search?q=Delegate%20Office%20Hours%20%23pubcall-%3A-office-hours) | [Join Link](https://www.google.com/url?q=https://us02web.zoom.us/j/88286550832?pwd%3DdWQzQi9tYlNyemJJS2Nrd2NUdTBoZz09&sa=D&source=calendar&ust=1659880182562101&usg=AOvVaw3yTu9eh_VXgy4PmEpGR574) | [date=2022-08-04 time=16:00:00 timezone="UTC"] - Governance & Risk - Ep. 202 | [Forum](https://forum.makerdao.com/tag/pubcall-:-governance-and-risk) | [Join Link](https://zoom.us/j/697074715) | [date=2022-08-04 time=17:00:00 timezone="UTC"] - Open Decentralized Voter Committee | [Join Link](https://www.google.com/url?q=https://us02web.zoom.us/j/82286534666&sa=D&source=calendar&ust=1659880182562101&usg=AOvVaw02xxxyHrbSGj_eLBlVZiJQ) | [date=2022-08-04 time=19:00:00 timezone="UTC"] --- ### Core Unit Office Hours <!-- UPDATE --> - [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 Wednesday 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> ### Disclaimer *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.*