--- tags: Summaries --- # MIP100: Stable Asset Allocation Framework This is a summary of the contents of this subproposal and its impact from GovAlpha's perspective: - This is a valid MIP eligible to enter the March Governance Cycle. - Stable Assets refer to any asset that is designed to have a fixed Net Asset Value (NAV) or market price in US dollar terms, e.g., cash, USD stablecoins, government securities, etc. - The MIP defines a "favored status" for Stable Assets. To qualify as a favored-status asset, the following conditions must be satisfied: - The asset must receive a positive assessment from an external professional ratings agency. - Competitive incentives must be offered to Maker for holding the asset. - Incentive payouts must be made on all of the assets if Maker holds over 100M DAI worth of the asset. - Incentive payouts must occur at least once a month, ideally more frequently. - The assets must remain in a PSM or other structure where Maker Governance has full control over it. - Aside from some exceptions, the protocol cannot hold over 100M DAI of any single non-favored-status stable asset. - This proposal has been assigned `High-Impact` based on the methodology listed [here](https://manual.makerdao.com/governance/off-chain/impact-estimations). ***Disclaimer: These summaries are intended to be a guide and not a source of truth. You remain responsible for any actions you take on the grounds of this information. Please note the date when the summary was last updated to judge accuracy.*** *Updated 2023-01-30* Points to review w/Author: - Incentive payouts must be made on all of the assets, if over 100M DAI worth of the asset is held by Maker. ### Note for MIP Editors: Original MIP should state this point in clearer language ### - Aside from some exceptions, the protocol cannot hold over 100M DAI of any single non-favored-status stable asset. ### Note for MIP editors: Maybe this should be stated in terms of debt ceilings for clarity? ###