---
# System prepended metadata

title: CVC meetings summaries
tags: [Monthly Scope update]

---

---
tags: Monthly Scope update
---

# CVC meetings summaries

# Regenerative Finance CVC - Inaugural Meeting
2023-04-04
Moderator: Kianga Daverington (ACREDAO)
[video](https://www.youtube.com/watch?v=xoJMDCdICuI)

## Intro to Regenerative Finance CV
- The desire to attrack MKR holders interested in ReFi and share vision on public good purpose
- The importance of position and governance strategy documents 
    - Guide for CDs to know how to assist CVCs on the implementation of their vision and their priorities. 
    - ReFi has started theirs
- The CVC is being built, deciding their internal governance process, etc.
-

## CVCs
- Are designed to make MKR-holders participation in governance less demanding
- They are not meant to micromanage
    - For ex.: CVCs set their vision on the type of candidate they want for their AC. CDs translate vision and Facilitators propose suitable candidates. 
- CVCs will naturally aim to attrack more MKR delegated to CDs that follow their strategy to have the impact they want to have

## Constitutional Delegates (CDs)
- Must be on top of governance, attend multiple CVC meetings, not only those they are following
- Entities that research, simplify, explain, translate, deep governance to something easier to MKR-holders
- Banned from campaigning and doing things outside the CVC
- They help CVCs draft the position documents:
    - Help with language making sure that it reflects CVCs opinions
    - Do not bring vision. Not expected to be experts in economy or finance, they must be experts in Maker policy. They can help external knowledge to maker compatible language. 
- CVCs will look to get a CD that they really trust to be very helpful (attend calls, provide information, help new comers)
- Neutrality of CDs: CVCs generate the bias, CDs can execute that bias if it is constitutional
  
# ACs
- The experts that give advice.
- CVCs should focus on how to hire ACs. 
    - How to pick ACs?
    - What skills, what requirements are we looking for?
    - What criteria should my AC meet?
- CVC should answer these questions to create criteria framework for AC hiring for all scopes.
- Do not have ideological bias. They are paid to do objective analysis.
- Facilitators can recommend ACs.

## Scope merging
- A result of the responsibilities of Maker core becoming simplified with how much subDAOs can handle.
- Collateral management used to be the most complicated. At the beginning, it looked impossible to include all collaterals in one, now it got simplified with the Allocator subDAOs.

## ALM
- ALM should be top priority of all CVCs
- CVC should make it part of their position papers as a project that needs to be done before starting any other 


# Growth CVC - Inaugural Meeting
2023-04-05
[video](https://www.youtube.com/watch?v=k6W2rJdyxkk&t=148s)

## Merge of the scopes [MIP102c2-SP2](https://forum.makerdao.com/t/mip102c2-sp2-mip-amendment-subproposals/20016/10)

## Role of CDs and their interaction with CVCs:
"CVCs are the King of the Castle. We are here to help him do the decisions he needs to make."

### CDs 
- Questions on how CDs can be helpful to CVCs.
- They should remain neutral and translate CVC ideas into reality.
    - If you want this, you should write this in the documents to get these results.
    - State pros and cons, expose potential conflicts to CVC members.
- CDs should not introduce bias, the CVC does. CDs are not experts, the ACs are.

### CVCs
- CVCs focus should be on the longterm, over 1-2 years. Not short-term issues like MIP102c2s SPs.
- Figure out their position and build position documents
- Here: what position is important for the Stability Scope
- Asset & Liability management is the priority for this scope.
    - CVCs' should focus on how to deal with ALM, what experts we go to, how much we pay, how we evaluate their input

### ACs Role
- ACs provide objective measures. Variables are given and CVCs can chose base on what best reflects the direction they are taking.
    - Questions: How should CVCs apply ACs' advice?
- Looking for ACs! 
    - No ACs have applied so far apart from Facilitators
    - CVCs should focus on looking for good ACs for the longterm


## Resiliency Meeting
2023-04-05
https://pastebin.com/nLu1xPrB
Moderator: Abhis
Written meeting.

### Stability and Liquidity

1. To diversify the treasury, the DAO must onboard more arrangers and diversify jurisdictions. This will require detailed ALM and arranger guidelines.
2. Preserve peg stability by keeping enough liquid cryptocurrency reserves. Make PSM adjustments to improve its handling of depegs(see recent events).
3. Supportive of improving asset-liability management model. The DAO ought to establish base interest for various types of collateral in a standardized way.
4. Support merging the Stability and Liquidity, Decentralized Collateral and RWA Collateral Scopes.

### Questions
- Hiring ACs
- Position on the possibility of depegging 
- ALM
    - ALM model is the foundation for all the other stuff, so if the ALM model isn’t good, the other things also won’t be good
    - Rune suggests: 1) Focusing on making scope amendments that specify how to onboard an ALM specialist for stability advisory work, 2) being mindful of prioritization and preventing other advisory work getting in the way of fixing the ALM model
   

## KISS Meeting
2023/04/07
[video](https://drive.google.com/file/d/14iawolNSouYbl1bzH3HKk-1puw1iQCsd/view)

### KISS presentation

![](https://i.imgur.com/HST7nbS.png)

- Vision: be careful in the way Maker invest resources making sure there is no waste
- Pillars: 
1) DAI must be stable, decentralized, uncensorable
2) Protocol must reward MKR holders - priority


### Assets and Liabilities Management (ALM)
13:47 Sébastien Derivaux - Presentation

![](https://i.imgur.com/MJF1uMl.png)

Asset = what you own
Liabilities = what is due to other parties

Two constraints to decide on strategy
1) solvency: asset must be over liabilities
    - solved by equity (surplus buffer): should be above zero
3) liquidity: Dai can be redemeed when users want 
    - solved by the liquidity reserves (PSM)

Strategic decisions based on these two constraints
    - what level of risk you want
    - problem space that should be prioritized

#### View on MakerDAO A&L states
![](https://i.imgur.com/SdUVAbP.jpg)

- Assets evaluated on:
    - Exposure
    - Expected return
    - Capital at risk

- Likelihood on people to redeem DAI
    - We have a need to redeem up to 1B/day

### CDs presentations
PaperImperium (22:00)
1) What we expect from CVCs?
- Platforms where CDs can ask question and discuss since it is prohibited elsewhere
- Guidance 

2) What they expect from us?
- We are folowing your strategy
- You should expect MKR supporting the CVC strategy 
well look for guidance from cvc and adjust

3) ALM: 
- decide whether Maker should be considered to operate  analagonous to a central bank or commercial bank.
- considerations on USDC 
- having guidance on that would be helpful
- get better risk control

3F Good Meta (27:30)
- CDs has the priority to protect the Constitution
![](https://i.imgur.com/LQ3yANx.jpg)
![](https://i.imgur.com/eNgsI0e.jpg)

1) What to expect from CDs?
CDs: 
- Translate CVC ideas
- Onboard Guardrails
- Neutral Messengers
- Unbiased recommendations
    - based on the CVC bias
- Aligned voting


### Questions
IamMeeoh (KISS moderator) questions:
Could we use CDs to suggest invited people for CVCs
CVC can use CDs to animate the call?
  
CDs should be able to help find experts

Issues on subjectivity / absence of objectivity
    find a balance, we are all humans

### Others
    ACs 
    ALM framework
    Merge of the scopes


Rune
Advisory Councel: getting advisors for the Stability Scope is the goal since the beginning
1) make facilitators focus on ALM
we want someone from makercore defining framework from ALM
top priority for CVCs should be to craft language that targets the facilitator to do what they want them to do
for exemple how to hire people, how to pay them
2) do not distract from ALM

The AC for all scopes merged in Stability Scope will be the same. Next week we can do same scope "Stability" proritizing AC and ALM

---

# Growth #3

- Moderator: Doo
- Video: https://www.youtube.com/watch?v=9mQ4SpD4g58

## Misc

- Organizational discussion
	- How to make recommendations for the CVC
	- Level of detail for the proposals in Pregame is not required to be anything in particular
	- Who will author MIP102c2 SPs? They are not necessary: Position Documents are all that's required from CVCs
	- CVCs approve Position Documents internally
	- No Scope edit is beyond bounds unless it contradicts the Constitution

## Agenda

- Options to grow Dai supply
	- L2s, although they do come with risks: If something goes wrong there, damage may spread to L1
	- Canonical Dai through bridges (maybe Teleport, where Dai is burned and minted elsewhere) may be more secure than wrapped Dai.
		- Risk mitigation may be achieved by limiting throughput, having multiple bridges...
	- However, canonical Dai may not be very scalable across different chains
	- A D3M can be deployed with Dai in it and a third-party can manage its L2 integration
	- But we need to have a product perspective first: What do we want? What is subdaos' role in this? How's the market space look?
- Dust limits
	- Raphael: Do not lower them. Let subDAOs be more retail-friendly
	- Lowering dust limits may be costly in the event of a market downturn and subsequent liquidations, but that cost could be offset by the greater number of users a lower dust would bring in
- Growing Dai demand
	- Dai demand can be grown by incentivizing use in decentralized exchanges. Is that worth deploying funds?
- What else can be grown using decentralized collateral?
- Technical dicussion based on Derek's post: Wrapped Dai? Deploy vat on L2? Teleport? Independent vaults, D3Ms?

---

# Growth #4

- Guest Speaker: Vahan P. Roth CIO and co-founder of RealUnit: Private currencies and potential ways to detach from a dollar peg
- Real-World Assets Scope
    - We can continue onboarding new collateral as long as they're compatible with the scopes
    - New collateral should ideally be from outside the USA
    - Ideally, focus should be on market funds from different jurisdictions or non-maket funds as long as the durations are not too high
    - We can grow in the ecosystem using L2 and integrating in the protocols there. How can we grow in Real-World Assets?
- Stablecoin diversity: Is it good to depend on multiple issuers or does it increase risk?
    - It may be good not only from a risk perspective but also from a commercial perspective
    - Given similar risk profiles, choosing the ones that provide greater rewards would make sense

---

# ReFi #3

- Presentation by the Ambassador Program team
    - The work so far
    - Extension of the program by becoming an EA
    - Dai as a hedge against inflation in Latin America
        - Discussion on fiat and exchanges in the region
    - Strategies to grow Dai

---

# ReFi #4

- Introduction of new CVC member: SpaceXponential
- Presentation by PVL on Maker and AI
    - Basic definitions
    - AI to manage emergent complexity; additionally, to track sentiment, generate risk parameters...
    - Focus should be on GAI (General Artificial Intelligence)
- Discussion on AI as integrated in the Scopes

---

# Composable #2

- Introduction of a new CVC member: DavidPhelps
- Joke contests as a tool to surface truth across all CVCs
- How to fulfill the quota of 12 Scopes per quarter while prioritizing the topics the CVC is most capable to tackle
- Discussion on how to streamline CVC meetings and increase alignment, feedback from ACDs
- Discussion on how to author Position docs
- Discussion on ALMs led by onestone
