---
# System prepended metadata

title: 'Know Your Mip Summary - Episode #01'
tags: [KYM]

---

---
tags: KYM
---

# Know Your Mip Summary - Episode #01
November 23th, 2020

## Agenda

- [00:00](https://www.youtube.com/watch?v=HN9avtSjoCw?t=0): Intro with Juan Guillén
- [00:50](https://youtu.be/HN9avtSjoCw?t=50): MIP29 with Sam MacPherson
- [02:54](https://www.youtube.com/watch?v=HN9avtSjoCw?t=174): Q&A and Discussion about MIP29

## Video

<https://www.youtube.com/watch?v=HN9avtSjoCw>

## Introduction

### Juan Guillén

#### Agenda and Preamble
[00:00](https://www.youtube.com/watch?v=HN9avtSjoCw?t=0)

- Welcome to the first KYM episode. Hopefully we'll get a rich discussion and an explanation where Sam can give us a bit of an overview of MIP29, which is the Peg Stabilization Module. If anyone feels like interrupting or asking any questions, feel free to do so.
- Discussions about MIPs happen in the [Forum.](https://forum.makerdao.com/c/MIPs/14)

## MIP29: Peg Stabilization Module

- [MIP29: MIP29 - Peg Stability Module](https://forum.makerdao.com/t/mip29-peg-stability-module/5071)
- [MIP29 with Sam MacPherson (00:50)](https://youtu.be/HN9avtSjoCw?t=50)


#### Discussion

- [02:54 - Let's say I'm a user and the PSM is implemented. Does this mean that through an interface I can just go and trade a stablecoin, potentially USDC, against Dai 1 to 1?](https://www.youtube.com/watch?v=HN9avtSjoCw?t=174)
- [05:00 - Is there a percentage or is it a fixed amount of Dai that you are going to pay?](https://youtu.be/HN9avtSjoCw?t=300)
- [05:11 - Do we have any idea about potential percentages for implementation or is that something to be decided later by Risk or potentially the MKR holders?](https://youtu.be/HN9avtSjoCw?t=311)
- [06:05 - Regarding one of the risks that I've been reading about: potentially having a dead ceiling for these vaults where there's a maximum amount of Dai that can be minted with this system. How does that work?](https://youtu.be/HN9avtSjoCw?t=365)
- [06:46 - Would this also work in the opposite case? Let's say the PSM is empty and Dai is trading at 0.99 instead of 1.01. Would this work or would we need to use other resources?](https://youtu.be/HN9avtSjoCw?t=406)
- [07:45 - Lucasmanuel: I just want to say that it's a good thing that you're using the existing `ilk` format for this. It's going to be much easier to audit [_followed by an explanation as to what the `ilk` format is_]](https://youtu.be/HN9avtSjoCw?t=465)
- [08:49 - Sam, do you want to cover a little bit more the opposing views or the risks?](https://youtu.be/HN9avtSjoCw?t=529)
- [10:03 - Is it possible that this will be used instead of a backstop as a frontstop so that all the pools that are made right now from stablecoins will be emptied...? Is it more profitable for someone to use the PSM instead of using one of the vaults and minting Dai "the normal way"?](https://youtu.be/HN9avtSjoCw?t=603)
- [11:53 - The next point [_re: opposing views and risks_]](https://youtu.be/HN9avtSjoCw?t=713).
- [13:16 - Why did you propose to accelerate the PSM launch?](https://youtu.be/HN9avtSjoCw?t=796)
- [14:45 - Gregory Di Prisco: I just want to reiterate why I feel this is so important to do](https://youtu.be/HN9avtSjoCw?t=885).
- [17:40 - I'm worried that this is going to be completely full the whole time and it's not going to be used because we're going to be at ceiling 100% of the time. How do you see that?](https://youtu.be/HN9avtSjoCw?t=1060)
- [18:37 - Would it not be possible to plug it to cUSDC?](https://youtu.be/HN9avtSjoCw?t=1117)
- [21:10 - Gregory Di Prisco: What's nice about the PSM and USDC vaults is that it lets us precisely target how much collateral we need to bring into the system](https://youtu.be/HN9avtSjoCw?t=1270).
- [22:31 - Sam, what are the next steps?](https://youtu.be/HN9avtSjoCw?t=1351)
- [23:25 - [...] my question was going to be about security and what we're going to do to make sure it's really airtight before implementation](https://youtu.be/HN9avtSjoCw?t=1405).

## Closing Comment

### Juan Guillén

#### Outro
[25:23](https://youtu.be/HN9avtSjoCw?t=1523)

- Thank you, everyone. Let's keep the conversation going in the forum. You can look for MIP29, PSM or Peg Stabilization Module. You can find Sam on the forum as @Hexonaut.

## Credits

- @Blimpa produced this summary.