# Biweekly CVC Report #1


With a cadence of one meeting per CVC per week, the five existing CVCs (soon to be renamed AVCs) have begun meeting two weeks ago.

This biweekly publication is mainly intended to keep track of and broadcast what is discussed in these meetings.

Each week has a Focus Scope, i.e., a common Scope for all CVCs to discuss. The Focus Scope for the first week was [MIP103: The Stability and Liquidity Scope](https://mips.makerdao.com/mips/details/MIP103); for the second week it was [MIP104: The Decentralized Collateral Scope](https://mips.makerdao.com/mips/details/MIP104). However, common organizational, operational, and other growing-pains themes have been the organically de facto main topic in most of the meetings. With this being the case, the granularity for these initial notes has been kept low. Furthermore, changes to the tentative format of this publication are to be expected as CVCs mature and individualize.

## Meetings

These meetings have taken place over the past two weeks:

- Composable [#1](https://www.youtube.com/watch?v=1BaYzMKjkqM) (on the second week)
- Growth [#1](https://www.youtube.com/watch?v=k6W2rJdyxkk) and [#2](https://www.youtube.com/watch?v=5hMdLs8uNqg)
- KISS [#1](https://drive.google.com/file/d/14iawolNSouYbl1bzH3HKk-1puw1iQCsd/view) and [#2](
https://drive.google.com/file/d/1ym0rQcKqa4a6VUctYg9XjlbtrMlNUjMg/view)
- Regenerative Finance [#1](https://youtu.be/evODsZ78RpE) and [#2](https://www.youtube.com/watch?v=evODsZ78RpE&t=1s)
- Resiliency [#1](https://pastebin.com/nLu1xPrB) and [#2](https://pastebin.com/QsRWHh0U)

The following highlights have been paraphrastically extracted from them. While we put effort in being true and unbiased, please consider watching the calls themselves (linked above) to fully inform your position.

## Highlights

These were the salient topics from the meetings of the past two weeks. Common or otherwise representative opinions and concerns have been extracted.

### General CVC Purpose

- Designed to make MKR-holders participation in governance less demanding.
- Figure out their position and build Position Documents.
- Not meant to micromanage.
- Example: CVCs set their vision on the type of candidate they want for their AC. CDs translate vision and Facilitators propose suitable candidates.
- CVCs focus should be on the long term, over 1-2 years, not short-term issues like MIP102c2s SPs.
- CVCs will naturally aim to attrack more MKR delegated to CDs that follow their strategy to have the impact they expect to have.
- Delegates expect:
- Platforms where CDs can ask question and discuss since it is prohibited elsewhere.
- Guidance.
- MKR voting power.
- CVCs expect the following from Delegates:
- Translating CVC ideas.
- Onboarding Guardrails.
- Being Neutral Messengers.
- Providing unbiased recommendations.
- Following the CVC bias.
- Aligned voting.

### CVC Organizational and Operational Discussion

- What platform to use for these meetings.
- How to keep track of people attending these meetings.
- How to assess contribution level and compensation.
- How to follow through and act on what has been discussed.
- Suggestion to use the scholastic approach: prereading and research for ulterior calls.
- In the near future meetings are likely to focus on concrete votes, with CDs feeding in with support.

### Advisory Councils

- How are they to be picked? Facilitators pick them. However, CVCs direct what CDs vote, so they can edit the relevant articles in the Scopes through them.
- What kind of advisors do we want?
- Would be good to have internal experts with institutional knowledge.
- As for outsiders, perhaps people from reputable companies. Maybe there are reasons not to do that, though:
- Traditional companies don't understand the DeFi space and Maker.
- However, there may be value in having domain specialists for specific matters.
- We can try to a identify areas that can benefit from outsiders. CVCs should create criteria framework for AC hiring for all scopes.
- We need to understand what we are doing internally before we can resort to experts. What is the business model in MakerDAO?
- Suggestion to bring ALM advisory consulting firms on the calls to run presentations and advertise their services.

### ALM

- ALM should be top priority of all CVCs.
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.
- CVC should make it part of their position papers as a project that needs to be done before starting any other.
- Make Facilitators focus on ALM.
- Two constraints to decide on strategy:
1. Solvency: asset must be over liabilities.
- Solved by equity (Surplus Buffer > 0).
2. 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.

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## Resources

- Times and dates for CVC calls can be found in [MakerDAO's calendar](https://calendar.google.com/calendar/embed?src=makerdao.com_3efhm2ghipksegl009ktniomdk%40group.calendar.google.com).
- A list of existing CVCs can be found under [MIP113, 4.4](https://mips.makerdao.com/mips/details/MIP113#4-4-cvc-management).
- The CVC Attendance Tracker keeps track of CVC calls, topics, attendance and their roles, participation, et cetera, and can be found [here](https://docs.google.com/spreadsheets/d/1vwlEsaKupVDs9d7iB2qnXkMbtY09hF_bNchXzGS7fo0/edit#gid=1225702635).