CVC Call Summaries #1 - April 2023, Monday 3 through Sunday 16

# CVC Call Summaries #1 - April 2023, Monday 3 through Sunday 16 This is a best-effort publication to broadcast the gist of the content produced in CVC calls. Please consider referring to the original sources listed under _Call Details_ for each call. ## Index This biweekly (*occurring every two weeks*) publication contains: [toc] --- ## First April Week - 2023-04-03 through 2023-04-09 ### Regenerative Finance CVC Call #1 :bee: > [About Regenerative Finance](https://forum.makerdao.com/t/cvc-creation-regenerative-finance-cvc/20354/1) > [Call video](https://www.youtube.com/watch?v=xoJMDCdICuI) <details> <summary>Call Details</summary> <ul> <li>Date: 2023-04-04</li> <li>Scope Focus: Stability and Liquidity</li> <li>Moderator: Kianga</li> <li>Attendance: 29</li> <li>Duration: 1 Hour</li> <li>Topics <ul> <li>Stability & Liquidity Changes </li> <li>Scope Combinations</li> <li>CVC & Delegate Compensation</li> <li>Advisory Councils & Constitutional Boundaries</li> </ul> </li> </ul> </details> #### Call Summary ##### Intro to Regenerative Finance CVC - 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](https://docs.google.com/document/d/1E0takg21z-Ox9Fhvi9s13XnS83vPiLjqdHQeeELwk8I/edit#heading=h.fdm1x5hsnrbp). - 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. - Example: 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 newcomers). - 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 ![](https://i.imgur.com/Wtf2PtD.png) ### Growth CVC Call #1 > [About Growth](https://forum.makerdao.com/t/cvc-creation-growth-cvc/20363) > [Call video](https://www.youtube.com/watch?v=k6W2rJdyxkk) <details> <summary>Call Details</summary> <ul> <li>Date: 2023-04-05</li> <li>Scope Focus: Stability and Liquidity</li> <li>Moderator: Nam Doo Wan</li> <li>Attendance: 27</li> <li>Duration: 1 Hour</li> <li>Topics <ul> <li>Stability & Liquidity Changes</li> <li>Scope Combination</li> </ul> </li> </ul> </details> #### Call Summary ##### 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; they should state pros and cons, expose potential conflicts to CVC members. - "If you want this, you should write this in the documents to get these results."" - However, they are not experts --- ACs are. ##### CVCs - CVCs focus should be on the long term, over 1-2 years, not short-term issues like MIP102c2s SPs. - Figure out their position and build Position Documents. 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 choose based 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 long term. ![](https://i.imgur.com/Wtf2PtD.png) ### Resiliency CVC Call #1 > [About Resiliency](https://forum.makerdao.com/t/cvc-creation-resiliency-cvc/20353/6) > [Call paste](https://pastebin.com/nLu1xPrB) <details> <summary>Call Details</summary> <ul> <li>Date: 2023-04-05</li> <li>Scope Focus: Stability & Liquidity</li> <li>Moderator: Abhis</li> <li>Attendance: 12</li> <li>Duration: ~30 Minutes</li> <li>Topics <ul> <li>CVC Position on S&L</li> <li>Onboard more Arrangers to DAO</li> <li>Diversify Jurisdictions</li> <li>Detailed ALM</li> <li>Arranger Guidelines</li> <li>Peg Stability with Liquid Crypto Reserves</li> <li>PSM Adjustments to Improve Depegs</li> <li>Supportive of improving ALM</li> <li>Support merging S&L, dCollateral, RWA Scopes</li> </ul> </li> </ul> </details> #### Call Summary ##### Stability & 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 is not good, the other things will not 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. ![](https://i.imgur.com/Wtf2PtD.png) ### KISS CVC Call #1 > [About Kiss](https://forum.makerdao.com/t/cvc-creation-kiss-cvc/20346/1) > [Call video](https://drive.google.com/file/d/14iawolNSouYbl1bzH3HKk-1puw1iQCsd/view) <details> <summary>Call Details</summary> <ul> <li>Date: 2023-04-06</li> <li>Scope Focus: Stability & Liquidity</li> <li>Moderator: IamMeeoh</li> <li>Attendance: 30</li> <li>Duration: ~1 Hour</li> <li>Topics <ul> <li>ALM</li> <li>CVC Expectations on Delegates</li> </ul> </li> </ul> </details> #### Call Summary - 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. ##### Assets and Liabilities Management (ALM) - Two constraints to decide on strategy: 1. Solvency: Asset must be over liabilities. - Solved by equity (Surplus Buffer): Should be >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. ##### View on MakerDAO A&L States - 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 Presentation ###### PaperImperium - What we expect from CVCs. - Platforms where CDs can ask question and discuss since it is prohibited elsewhere. - Guidance. - What they expect from us. - We are following your strategy. - You should expect MKR supporting the CVC strategy. - 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 - CDs must protect the Constitution. - What to expect from CDs? - Translate CVC ideas. - Onboard Guardrails. - Neutral Messengers. - Unbiased recommendations. - Following the CVC bias. - Aligned voting. ##### Questions - IamMeeoh asks whether we could use CDs to suggest invited people for CVCs. CVCs can use CDs to animate the call? - CDs should be able to help find experts. - Issues on subjectivity / absence of objectivity. Balance. ##### Others - ACs . - ALM framework. - Merge of the Scopes. - Rune: - Advisory Councils: Getting advisors for the Stability Scope is the goal since the beginning. 1. Make facilitators focus on ALM. - We want someone from Maker Core 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, e.g., how to hire people, how to pay them. 2. Do not distract from ALM. - The AC for all Scopes merged into the Stability Scope will be the same. Next week we can do the same scope prioritizing AC and ALM. --- ## Second April Week - 2023-04-10 through 2023-04-16 ### Regenerative Finance CVC Call #2 :bee: > [About Regenerative Finance](https://forum.makerdao.com/t/cvc-creation-regenerative-finance-cvc/20354/1) > [Call video](https://www.youtube.com/watch?v=evODsZ78RpE) <details> <summary>Call Details</summary> <ul> <li>Date: 2023-04-11</li> <li>Scope Focus: Decentralized Collateral</li> <li>Moderator: Kianga</li> <li>Attendance: 22</li> <li>Duration: 1 Hour</li> <li>Topics <ul> <li>What is Dai today? What is it in hypothetical futures?</li> <li>Decentralized collateral: Why is it important? Is it attractive for end users?</li> <li>Perspectives on CVCs and CVC calls</li> </ul> </li> </ul> </details> #### Call Summary - New format for this second meeting: Trialing the Discord voice channel for a couple of weeks - Honing the Regenerative Finance (ReFi) vision and seeking alignment through prompts ##### What is Dai? - What is Dai in a hypothetical world where Maker has erradicated poverty? More generally, what is Dai? - An unbiased, unstoppable currency that cannot be weaponized by nation states and is immune to one-sided shifts in monetary policy. - Dai can facilitate transactions between developing countries and sets an equal playing field for all users in terms of accesibility, exchange rates, et cetera. ##### Decentralized Collateral - Kianga prompts to resume the conversation (started on the previous week) on the Stability and Liquidity Scope. Thoughts on the importance of decentralized collateral. Does it reduce the friction inherent to traditional assets for the end user? Does it make Dai more attractive for them? - Its significance may have been overestimated. Target users often don't have such a deep understanding. The importance of decentralized collateral is its actual risk mitigation properties and overall resiliency. - While it may be more important in the future (the reason we are future-proofingly accumulating staked Eth), it is not likely to increase adoption today. - Its total volume is relatively small. ##### CVC Calls - Kianga prompts what the attendees think of CVCs and how calls are to be conducted. - May generally take a more "scholastic" form: one where there is prompted prereading and research, but not to the extent that it hinders participation from toe-dipping actors. - Likely to focus on concrete votes, with ADs feeding in with support. - Brief discussion on the [ongoing Ratification Poll](https://vote.makerdao.com/polling/QmTYdpaU). ![](https://i.imgur.com/Wtf2PtD.png) ### Some other CVC Call TBD --- ## 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 in the [Constitutional Voter Committee](https://forum.makerdao.com/c/governance/constitutional-voter-committees/77) forum subcategory. - The CVC Attendance Tracker keeps track of CVC calls, topics, attendance and their roles, participation, et cetera, and can be found [here](). - CVCs are hereby reminded that, as per [MIP101, 5.4](https://mips.makerdao.com/mips/details/MIP101#5-4-constitutional-voter-committee-recognition-process) they are tasked with the production of one Governance Strategic Position Documents per Scope each quarterly governance cycle. Failure to produce them within the specified timeframe will result in loss of recognition as CVCs. --- To reiterate: This is a best-effort publication to broadcast the gist of the content produced in CVC calls. Please consider referring to the original sources listed under _Call Details_ for each call.