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tags: Forum at a Glance
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# Forum at a Glance: April 14 - 20, 2022


Welcome to the one-stop-shop for a TL;DR on everything discussed on the MakerDAO forum.

*Links reflect our views of the most noteworthy activities in the governance, risk, and oracles categories. Disagree? Think something should be added? Leave a reply or send a PM.*

[Online PDF version](https://pdfhost.io/v/0VNsxkcoc_Forum_at_a_Glance_April_14_20_2022)
[Medium]() *publishing soon!* | [GovComms Medium Account](https://medium.com/@MkrGovComms)

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‘What is the most relevant information on the forums this week for MKR and Dai holders?’

1. The stablecoin liquidity buffer lost more than 1B Dai over the past month. Where did it go? An [ALM Liquidity Update](https://forum.makerdao.com/t/alm-liquidity-update/14687) analyzes what happened.
2. @christiancdpetersen posted [Why Integrating DeFi and Real World Finance is Hard](https://forum.makerdao.com/t/series-why-integrating-defi-and-real-world-finance-is-hard/14698), the first in a series of posts exploring the challenge of integrating real world finance with DeFi.
3. An [informal poll](https://forum.makerdao.com/t/informal-poll-fund-a-professional-media-production-company-as-a-core-unit-that-will-produce-content-for-the-benefit-of-makerdao-e-g-content-marketing-to-grow-dai-supply-and-expand-makerdao-s-fanbase/14641) is underway to gauge interest in developing a new Core Unit focused on professional media production.

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**[ALM Liquidity Update](https://forum.makerdao.com/t/alm-liquidity-update/14687)**

<details><summary>In the last month, the stablecoin liquidity buffer lost more than 1B Dai, primarily due to the unwinding of some yield farming. This may have been due to a migration of some users to Stargate, which does not currently have a Dai pool.</summary><br>

The stablecoin liquidity buffer reached a new all-time high on March 18th, with 6.2B Dai in stablecoins. The buffer now holds only 5.1B Dai, for a loss of 1.1B Dai within a single month.

But where exactly did all that Dai go?


- **Avalanche**: There is currently 768M DAI on the Avalanche Bridge, which was 284M less than one month ago. The biggest user of Dai seems to be Aave, incentivized with the AVAX token.
- **Compound** significantly reduced [liquidity mining rewards](https://compound.finance/governance/proposals/89) on March 19th.
- **Fantom**: There was a spike of Dai on Fantom for yield farming, but it decreased linearly.
- **DEX/3pool**: Many Dai is sitting in Curve's 3pool. This pool is not a great opportunity but is pushed by metapools on it. It is mainly the FRAX, UST, and MIM metapools that are the reason for the TVL of 3pool.
- **ETH loans**: There was increased demand for ETH loans, which reduces the stablecoin liquidity buffer if that Dai is not held. Most of this demand comes via Nexo. The rest remained quite stable.

The post concludes that yield farming users are not "sticky," and it may be a good idea to attempt to label Dai usage related to yield farming and consider it a liquidity risk. Additionally, the PE team is working with [Stargate](https://stargate.finance/pool) to integrate into D3M and Multichain strategies.</details></br>

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**[Series: Why Integrating DeFi and Real World Finance is Hard](https://forum.makerdao.com/t/series-why-integrating-defi-and-real-world-finance-is-hard/14698)**

@christiancdpetersen of the Real World Finance Core Unit posted the first in a series on the difficulties and challenges of integrating real world finance with DeFi.

First off, the stability fee compounds on a per-second basis, but the borrower calculates the outstanding stability fee, and the time they repay the vault can differ by seconds, minutes, or hours. This mismatch causes a small amount of Dai to remain outstanding, which is a flaw in the design of MIP21 and requires improvement for future deals.

In typical real world financing, interest compounds on longer time intervals (usually annually), and debts are paid PIF.

**[What is a Trust Indenture? What is an Indenture Trustee?](https://forum.makerdao.com/t/what-is-a-trust-indenture-what-is-an-indenture-trustee/14697)**

<details><summary>This post aims to clarify one particular aspect of the legal structure for Centrifuge real world asset (RWA) vaults: the trust indenture and the indenture trustee.</summary><br>

A trust indenture is a contract used in a bond offering between the bond issuer and a trustee detailing the terms and conditions the trustee must adhere to and the rights of the trust beneficiaries (e.g., bondholders and tokenholders). A trust indenture also contains terms and conditions about the circumstances that may lead to a default and the process for handling this situation.

The indenture trustee is a third-party intermediary that manages the relationship between an issuer and holders of the issuer’s securities (or tokens). The indenture trustee takes care of administrative matters relating to the securities, such as payment processing, and makes sure the issuer complies with the terms of the trust indenture.

The actions an indenture trustee might take in a typical default situation include:

- Polling the tokenholders and obtaining a decision about whether there should be a restructuring or temporary forbearance
- Solicit direction from tokenholders on a selection of counsel and/or a financial advisor
- At the direction of the tokenholders, coordinate between counsel, the issuer, and the financial advisor for the liquidation of the collateral
- Distribute the proceeds of the liquidation to the tokenholders
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**[INFORMAL POLL: Should MakerDAO RWA establish a free speech trust (Delaware) for the benefit of Web3 and Twitter Users to Finance Elon Musk’s Purchase of and Open Sourcing of Twitter?](https://forum.makerdao.com/t/informal-poll-should-makerdao-rwa-establish-a-free-speech-trust-delaware-for-the-benefit-of-web3-and-twitter-users-to-finance-elon-musk-s-purchase-of-and-open-sourcing-of-twitter/14683)**

<details><summary>After acquiring a large stake and becoming Twitter's biggest shareholder, Elon Musk has submitted an offer to take the company private with the stated goal of open sourcing Twitter to safeguard free speech.</summary><br>

@maxglass points out the "iconic" status of the social media platform and its role as the town square of crypto and briefly makes a case for why they believe Musk has the capability of pulling off his stated goals and why he might be amenable to a proposal of this nature:

- Twitter is inundated with spam and bots
- It is struggling with how to safeguard freedom of speech
- The assets of the company are woefully underexploited and mismanaged
- Twitter could be used to onboard millions of users to Web3 via the adoption of a governance token with on-chain governance and by integrating crypto wallets for user authentication
- Musk has the resources to acquire Twitter and is demonstrably a champion of free speech
- Musk has a track record of building best-in-class products and growing his companies exponentially
- Musk has a track record of actually open sourcing valuable IP such as Tesla patents
- Musk asserts that "I don't care about the economics at all," implying that he would be amenable to the capped upside for him, with excess value accruing to the users of Twitter

The basic structure of the financing would involve the creation of a new vault with a \$500M debt ceiling and a MIP21 secure conduit to a Delaware statutory trust.

So far, the proposal has received a mixed reception in the comments.</details><br>

**[INFORMAL POLL: Fund a professional media production company as a core unit that will produce content for the benefit of MakerDAO (e.g., content-marketing to grow Dai supply and expand MakerDAO’s fanbase)?](https://forum.makerdao.com/t/informal-poll-fund-a-professional-media-production-company-as-a-core-unit-that-will-produce-content-for-the-benefit-of-makerdao-e-g-content-marketing-to-grow-dai-supply-and-expand-makerdao-s-fanbase/14641)**

<details><summary>An informal poll is underway to gauge interest in funding a professional media production company as a new Core Unit to boost MakerDAO's content marketing plans.</summary><br>

A well-known television production company named Glass Entertainment Group proposes establishing a new production company, the content production core unit “Let’sMakerDAO,” with Nancy Glass as the Core Unit Facilitator.

<https://www.youtube.com/watch?v=pMXHx027er4>

Glass Entertainment Group has over 200 full-time staff across a handful of companies that support all GEG businesses. With the help and education of @maxglass, GEG submitted a post introducing a new Content Production Core Unit called "Let'sMakerDAO," or LMKR for short. [Nancy Glass](https://en.wikipedia.org/wiki/Nancy_Glass) is the facilitator proposed and the founder of GEG.

GEG speaks shortly on their mandate to increase Maker and Dai mass consumption, expand our reachable audience, grow the community, and help promote the MakerDAO name. They will also work with other Core Units to support needs and objectives containing professional audio and video.

There are two stages of commercial content production;

The development stage delivers a production plan based on a given production budget. The production plan will include a creative description and concept overview, an episodic breakdown, a description of the tone, and a style guide (the “look” of the content. E.g., Fonts & colors). Additionally, an audio-visual proof of concept, typically 90 seconds to 2 minutes, may be applied before voting for production.

The production stage is broken down into pre-production, production, and post-production, which can take 12 months. For GEG to enter a production stage, the community would have to vote on GEG's production budget and plan after they complete the developmental stage.

These two stages may likely have their signal requests. Instead of shelling out a large chunk of Dai, GEG applies for three months of development funding at 124.000 Dai. This will include a content marketing strategy and development team:


If a proposed Signal Request is successful, GEG will create a formal proposal to acquire the necessary budget and onboard as the LMKR Core Unit. GEG will provide show treatments/budgets/sizzles into a content-marketing strategy package using YouTube, podcast platforms, Twitter, Instagram, TikTok, Facebook, and MakerDAO’s website. The Strategy Proposal will focus on getting LMKR content picked up by the DeFi news outlets and mainstream media: network, cable, and print such as CBS, CNN, CNBC, The Wall Street Journal, etc.

GEG acknowledges their inexperience in crypto-related, global economics, and monetary policy production and not being crypto-native.

What comes after this informal poll? If more than 50% of non-abstaining votes favor a 3-month development test, GEG will post a detailed MIP officially requesting funding for their development budget. If less than 50% show support, no further action will be taken by GEG.

Here is the current poll outcome:


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‘Yo, do you even signal?’

**[Change `lid` Parameter on the Rate Limiter](https://forum.makerdao.com/t/signal-request-change-lid-parameter-on-the-rate-limiter/14688)**

The passing and introduction of the Rate Limiting Flapper have been successful, but it only allows to kick off a new auction if the new auction does not increase the total-DAI-currently-in-auction above a certain threshold - the `lid` unless it's at the same value as the `bump.`

Currently, the value for the lid is set to 150k Dai, which can run five flap auctions at once. However, ultraschuppi believes that there is no good reason to burn so much MKR and proposes setting the `lid` to the same value as `bump` - 30,000 Dai. Having a 1:1 'lid' to 'bump' ratio will ensure that there is only one parallel flap auction running at any given time.

What's good about this is that in the case of a huge spike on the System Surplus causing spillage to the Surplus Buffer, the time spread of those resulting auctions will be 5x compared to the current setting thereby producing a more steady burn. However, in sacrifice, we will limit the maximum of MKR burnt per day from 7.2MM Dai to 1.44MM Dai.

**Vote will run until May 13, 2022.**

<details><summary>Here are the current voting results:</summary></br>


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**[Onboard D3M for TrueFi](https://forum.makerdao.com/t/signal-request-onboard-d3m-for-truefi/14563)**

TrueFi is signaling to onboard a D3M for a newly created TrueFi 3-month-maturity DAI lending portfolio with an initial debt ceiling of 50-100 million DAI. @RyanRodenbaugh, a member of TrueFi, states that this onboarding is in line with MakerDAO’s ‘[Aggressive Growth Strategy.](https://forum.makerdao.com/t/aggressive-growth-strategy/13958)’

Pros:

- Non-Crypto Lending Opportunities
- Customized Loan Opportunities
- Future Collaborations

Cons:

- Smart contract risk
- Multisig Risk
- Illiquidity Risk
- Compliance Risk

**Vote will run until April 25, 2022.**

<details><summary>Here are the current voting results:</summary></br>


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‘Oh my god, this is taking ages; why can’t things be simple?’

<details><summary><i>Click here for a list of current initiatives:</i></summary><br>

[Maker Operational Manual](https://forum.makerdao.com/t/announcing-maker-operational-manual/12553) - @GovAlpha-Core-Unit release the launch of the Maker Operational Manual and invite all members and Core Units to reach out if they wish to provide any help or documentation to add for the Manual.

[Recognised Delegate Requirements](https://forum.makerdao.com/t/recognised-delegate-requirements/9421) - @LongForWisdom writes a detailed overview of the current requirements and application system to become a delegate in the Maker community. Check out this [thread](https://forum.makerdao.com/search?expanded=true&q=%40LongForWisdom%20%23governance%3Adelegates) for more posts related to delegation.

[Where to Find Opportunities at MakerDAO](https://forum.makerdao.com/t/where-to-find-opportunities-at-makerdao/10076/2) and [Open positions at MakerDAO](https://forum.makerdao.com/t/open-positions-at-makerdao/12197) - Looking for job opportunities at MakerDAO? Perfect! @Davidutro and @manomad set up individual threads containing resources to help find available job listings and hiring practices. *If anybody has additional information on unique hiring practices or job listings, please comment on the thread.*

[:mega: Collateral Calls - Calling all Projects!](https://forum.makerdao.com/t/collateral-calls-calling-all-projects/3715) - @juan sets up a signup thread for projects wishing to present on the bi-weekly collateral call. Know any potential collateral partners that want to present? Refer them here.

[Collateral Status Index](https://forum.makerdao.com/t/collateral-status-index/2231) - Confused about the current status of the various collateral types discussed recently? Check out this post to determine the status and current position within the onboarding process.

[Weekly MIPs Updates](https://forum.makerdao.com/tag/mips-update) - @blimpa brings the latest updates in MIPs.

[The Official Welcome Thread](https://forum.makerdao.com/t/the-official-welcome-thread/771/4) - A welcome and introductions thread. Not strictly governance, but if anyone new or old wants to introduce themselves, now is your chance!

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‘Oh %#\$?, we need a doodad, and we need it now.’

[Wanted: Governance Contributors for GovAlpha](https://forum.makerdao.com/t/help-wanted-govalpha/8811) - @LongForWisdom puts out the call for new team members! Different tracks are available depending on interest and time commitment.

We could always use help reviewing [MIPs in the Request for Comment phase](https://forum.makerdao.com/tag/rfc).

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*Please, check out the [Forum at a Glance feedback survey](https://survey.sogosurvey.com/r/qTb1p7) to help us improve and scale these reviews - It will be fun, I promise.*

Credit: @nothsa and @Artem_Gordon