---
# System prepended metadata

title: 'Collateral Call Summary - Episode #08'
tags: [Collateral Call]

---

---
tags: Collateral Call
---

# Collateral Call Summary - Episode #08
September 16th, 2020

## Agenda

- [00:00](https://youtu.be/sP7H1sOjKRE): Intro with Juan Guillén
- [03:45](https://youtu.be/sP7H1sOjKRE?t=225): Centrifuge with Lucas Vogelsang
- [22:10](https://youtu.be/sP7H1sOjKRE?t=1330): Q&A and Discussion about Centrifuge
- [27:45](https://youtu.be/sP7H1sOjKRE?t=1665): 6s Capital with Matthew Rabinowitz
- [44:40](https://youtu.be/sP7H1sOjKRE?t=2680): Q&A and Discussion about 6s Capital

## Video

<https://youtu.be/sP7H1sOjKRE>

## Introduction

### Juan Guillén

#### Agenda and Preamble
[00:00](https://youtu.be/sP7H1sOjKRE)

- Today we have our special edition launching Real-World Assets. On the first half we will have Lucas presenting Centrifuge and on the second half Matthew Rabinowitz with 6s Capital. Personally, and I believe everyone else joining me here, we want to see progress in bringing RWA into the platform. We have a lot of information scattered, industry experts and a lot of people that have a say, so we are at a point where we need to organize and structure a working plan and move things forward. Sébastien Derivaux has posted a thread to make a working group that will hopefully make things move forward, people rally around it, maybe have regular calls and a clear action plan. Do you want to comment about it, Seb? 
    - Sébastien Derivaux: Yes, I'm leading this group to find a way to get RWA on Maker as soon as possible and mainly to offer a third view. Now we have Centrifuge proposing one kind of collateral and 6s proposing something a bit different and I want to explore a third way to merge those assets to get RWA into Maker as soon as possible and in a better shape for all Maker.
- Frank asked on the chat if this meeting will happen every Wednesday. Not yet, but ideally we would leave with some action points. That could be one of them and there's this forum thread that Sébastien posted so ideally we would get people's value around that and get something concrete going on.
    - Sébastien Derivaux: Yes, there is a Google Doc that will be expanded and everyone is free to comment on it.
    - Lucas Vogelsang: I would really support having RWA focus call every other week. I think that what Seb proposed here, using the working group as a vessel, it's a good idea.
- Discussions about collateral happen in the [Forum.](https://forum.makerdao.com/c/risk/collateral-meetings/23)

## Centrifuge

- [MIP13c3-SP5: Declaration of Intent: Maker to commence onboarding work of Centrifuge based Collateral ](https://forum.makerdao.com/t/mip13c3-sp5-declaration-of-intent-maker-to-commence-onboarding-work-of-centrifuge-based-collateral/4059)
- [[PC-DROP] MIP6 Application: Paperchain DROP: Tokenized Music Streaming Invoices](https://forum.makerdao.com/t/pc-drop-mip6-application-paperchain-drop-tokenized-music-streaming-invoices/2215)
- [[CF-DROP] MIP6 Application: ConsolFreight DROP: Tokenized Freight Shipping Invoices](https://forum.makerdao.com/t/cf-drop-mip6-application-consolfreight-drop-tokenized-freight-shipping-invoices/2214)
- [[KF-DROP] MIP6 Application: Kickfurther DROP: Consignment Inventory Finance For eCommerce & Retail Brands](https://forum.makerdao.com/t/kf-drop-mip6-application-kickfurther-drop-consignment-inventory-finance-for-ecommerce-retail-brands/4064)
- [[NS-DROP] MIP6 Application: New Silver DROP: Real Estate-Backed Loans](https://forum.makerdao.com/t/ns-drop-mip6-application-new-silver-drop-real-estate-backed-loans/3477)
- [[HTC-DROP] MIP6 Application: Harbor Trade Credit DROP: Short Term Trade Receivables](https://forum.makerdao.com/t/htc-drop-mip6-application-harbor-trade-credit-drop-short-term-trade-receivables/3502)

### Lucas Vogelsang

#### Presentation
[03:45](https://youtu.be/sP7H1sOjKRE?t=225)

![Intro](https://i.imgur.com/VKm22ps.png)
![Quick Overview](https://i.imgur.com/CTtXo5n.png)
![Onboarding Timeline and Process](https://i.imgur.com/ywA7WKO.png)
![MIP13-c3-SP5](https://i.imgur.com/7kdwkb0.png)
![MIPXX: Drop Collateral Onboarding](https://i.imgur.com/1hzUc2f.png)
![Key differences MIP6-MIP12](https://i.imgur.com/ivpGMAu.png)
![Vault Owner](https://i.imgur.com/LpK1tWz.png)
![Price Feed](https://i.imgur.com/Vj1bv4o.png)
![Risk Work](https://i.imgur.com/FCiOeVv.png)
![Next Steps: RWA Working Group](https://i.imgur.com/QYVenGY.png)
![Contact](https://i.imgur.com/X106r7g.png)


#### Discussion

- [22:10 - Juan Guillén: When we were discussing Centrifuge, I heard that there is an additional risk to it because Token emission happens on a sidechain. Can you comment on this?](https://youtu.be/sP7H1sOjKRE?t=1330)
- [23:20 - Sébastien Derivaux: I thought that on your website you need to have some KYC for your investors, would that be needed for Maker or is it not too important?](https://youtu.be/sP7H1sOjKRE?t=1400)
- [25:25 - Will Remor: Would it be possible for you to share some of the data that the asset originators are collecting in terms of those industry numbers and in different reports in past performance, the data fields that have been collected?](https://youtu.be/sP7H1sOjKRE?t=1525)
- [26:55 - Juan Guillén: I have a comment for the working group, maybe it would be good to have very clear steps on what do we have, what's next, what do we need, from the risk point of view, the technical point of view, any MIP that should be approved for it to happen and maybe do a FAQ section where we can post these questions with answers and supporting documents. I think that will be very useful.](https://youtu.be/sP7H1sOjKRE?t=1615)

## 6s Capital

- [MIP21: Real World Assets - Off-Chain Asset Backed Lender ](https://forum.makerdao.com/t/mip21-real-world-assets-off-chain-asset-backed-lender/3917)
- [MIP13c3-SP4 Declaration of Intent & Commercial Points - Off-Chain Asset Backed Lender to onboard Real World Assets as Collateral for a DAI loan ](https://forum.makerdao.com/t/mip13c3-sp4-declaration-of-intent-commercial-points-off-chain-asset-backed-lender-to-onboard-real-world-assets-as-collateral-for-a-dai-loan/3914)

### Matthew Rabinowitz

#### Presentation
[27:45](https://youtu.be/sP7H1sOjKRE?t=1665)

![Intro](https://i.imgur.com/iRGk9k3.png)
![Disclaimer](https://i.imgur.com/rijTaS3.png)
![Peter Drucker quote](https://i.imgur.com/Y6L2gAC.png)
![Why?](https://i.imgur.com/7EqE7jx.png)
![What is needed?](https://i.imgur.com/fBGslXY.png)
![What are we trying to accomplish?](https://i.imgur.com/FZ7H0c0.png)
![Why and how is this different?](https://i.imgur.com/VQw42WW.png)
![Smart Contract and Legal Risk Graph](https://i.imgur.com/bQtAUY6.png)
![Change your perspective](https://i.imgur.com/Brt8CTM.png)
![How is it done today?](https://i.imgur.com/I2rd3YI.png)
![Today, from the eyes of the developer](https://i.imgur.com/RieuWA4.png)
![Today, from the eyes of Maker](https://i.imgur.com/LSN3oBD.png)
![Objective](https://i.imgur.com/uA63cSC.png)
![Future, they eyes of the developer](https://i.imgur.com/nlqNnxt.png)
![From the eyes of a senior debt facility](https://i.imgur.com/IjIQ3dp.png)
![From the eyes of Maker](https://i.imgur.com/Muu0Ega.png)
![How do we scale?](https://i.imgur.com/QhDgbd7.png)
![Assembly Line per Tenant](https://i.imgur.com/JJzdNSt.png)
![Strategy: Developer Assembly Line](https://i.imgur.com/ojcdEEf.png)
![Real Estate Research](https://i.imgur.com/cwb9UF3.png)
![Phase II Development](https://i.imgur.com/0fybZQl.png)
![Phase III Closing](https://i.imgur.com/0VEA85D.png)
![Phase IV: Construction](https://i.imgur.com/oJtxlUl.png)
![Divestiture/Disposition](https://i.imgur.com/6YFn7Ej.png)
![Three Fundamental Risk areas](https://i.imgur.com/8LNmsO3.png)
![Legal Contracts](https://i.imgur.com/3JpQ3AH.png)
![Smart Contract Risk](https://i.imgur.com/wG97hpn.png)
![LendCo](https://i.imgur.com/AMdMWuR.png)
![BorrowCo](https://i.imgur.com/ePwH9k1.png)
![Market/Tenant Risk](https://i.imgur.com/NFTN9s1.png)
![Maker Risk](https://i.imgur.com/1xTOPrV.png)
![Compare and Contrast](https://i.imgur.com/nfCEsin.png)
![Graph](https://i.imgur.com/DMmaxtI.png)
![Key Takeaway](https://i.imgur.com/6sroL6x.png)
![Proposed Tenant Selection](https://i.imgur.com/obj6HAb.png)
![General Sequence](https://i.imgur.com/sIdauzz.png)
![Next Steps](https://i.imgur.com/NEKAd8S.png)
![Contact](https://i.imgur.com/HFXRQlL.png)

#### Discussion

- [44:40 - Akiva: I think that it's best if you release some information about the trust and the trust agreements as early as possible, because not only does the Maker Community need due diligence on your specific agreements but many people in the Community may also be wanting to do some diligence on a more general space of trust law so that we understand not only your proposal but also how it works in the context of the more general law.](https://youtu.be/sP7H1sOjKRE?t=2680)
- [45:50 - Sébastien Derivaux: With the structure that you are proposing, Maker Governance gives you a scope in which you can find projects and execute them, can you explain how broad the scope is that you are proposing and how you want to work with the Maker Community to define this?](https://youtu.be/sP7H1sOjKRE?t=2750)
- [47:50 - Sébastien Derivaux: Is there data that you can share about that?](https://youtu.be/sP7H1sOjKRE?t=2870)
- [48:05 - Frank Cruz: Can you please expand on what the Maker representative would need to do such as signing documents on behalf of the community, reviewing documents, reports, etc?](https://youtu.be/sP7H1sOjKRE?t=2885)
- [49:35 - Frank Cruz: Is that an on-chain action? Reviewing the contract is fine, but do you see that there would be a Governance vote or an approval on-chain that would have to happen once these representatives review it?](https://youtu.be/sP7H1sOjKRE?t=2975)
- [51:45 - Juan Guillén: We have a similar situation with the Dark Fix mechanism in Maker where the protocol needs to trust someone, so maybe we can borrow concepts from that.](https://youtu.be/sP7H1sOjKRE?t=3105)
- [52:30 - Frank Cruz: I fully agree with you on having an opt-in on every asset and every transaction. It's better to say like there should be a mechanism to hold this whole mechanism if it goes out of bounds. And this is also what we are proposing with our asset originators because I see that it makes sense in some extent otherwise you end up overloading your Governance Ether (?) and even the representatives that you are proposing to do too much, right? And one other questions is: Do you have one shared equity tranche among all these projects or is it just that each individual project has a piece of equity. So the question is, if one of the projects is a complete default, will that just lead to basically 30% being covered or would it lead to the equity from the entire pool of assets in this category be impacted? ](https://youtu.be/sP7H1sOjKRE?t=3150)
- [54:50 - Frank Cruz: I was going slightly somewhere else with my question. Let's say, you have two properties that you are developing, both of them worth a million, both of them with 300,000 in equity, if one of them returns zero dollars, Maker in the end would not be able to get the 600,000 that is equity from both projects but that particular project is only covered by 30%. Right?](https://youtu.be/sP7H1sOjKRE?t=3290)
- [55:55 - Sébastien Derivaux: Maybe I can reframe the question, if I understand correctly, the question is if we are doing a loan to 6s Capital and is it an individual loan for each project?](https://youtu.be/sP7H1sOjKRE?t=3355)

## Closing Comment

### Juan Guillén

#### Outro
[56:40](https://youtu.be/sP7H1sOjKRE?t=3400)

- As much as I would love to continue discussing about these topics, we are passed the hour, so we'll call it a day for today and regroup in two weeks from now. Again, call to action, go to the forum on Seb's post and sign up if you want to attend potential meetings and get documents. 
- Next week, we are going to have Marc Zeller and Stani from Aave discussing their token and then Tyler Winklevoss from Gemini discussing GUSD.
- Thanks to Lucas, Matthew, Seb, and everyone else for participating.

## Credits

- Gala Guillén produced this summary.
- Everyone who spoke and presented on the call, listed in the headers.