---
# System prepended metadata

title: 'Episode #211: October 6<sup>th</sup>, 2022'
tags: [G&R]

---

---
tags: G&R
---

# Episode #211: October 6<sup>th</sup>, 2022

## Agenda

- [00:00](https://youtu.be/0wWfLly2Tzw): Introduction
- [01:17](https://youtu.be/0wWfLly2Tzw?t=77): Votes and Polls
- [03:16](https://youtu.be/0wWfLly2Tzw?t=196): MIPs Update
- [Pre-recorded](https://www.loom.com/share/ecac9b3b022e46cabdaab7633df7ae96): Weekly Forum Recap
- [09:25](https://youtu.be/0wWfLly2Tzw?t=565): Initiatives Update: JokeDAO for Consensus
- [37:03](https://youtu.be/0wWfLly2Tzw?t=2223): Discussion Segment: MIP81: Coinbase USDC Rewards
- [1:08:05](https://youtu.be/0wWfLly2Tzw?t=4085): Conclusion

## Video

[Link](https://youtu.be/0wWfLly2Tzw)

## General Updates

### Votes

#### Payton Rose

[01:17](https://youtu.be/0wWfLly2Tzw?t=77)

<sup>**Visit:** [_Voting Portal_](https://vote.makerdao.com/)</sup></sup>

> **Votes:**
> - *Polls:* -- [01:55](https://youtu.be/0wWfLly2Tzw?t=115)
> - *Executive Proposals:* -- [02:20](https://youtu.be/0wWfLly2Tzw?t=140)

### MIPs

#### Gala

[03:16](https://youtu.be/0wWfLly2Tzw?t=196)

<sup>**Visit:** [_Weekly MIPs Update #107_](https://forum.makerdao.com/t/weekly-mips-update-107/18199)</sup>

[MakerDAO Votes and Polls Public Calendar](https://calendar.google.com/calendar/embed?src=bdf4un05hpg0611lg3ieue4t3c%40group.calendar.google.com&ctz=America%2FNew_York)

<sup>**Important Dates:** 
        _Ratification Polls for the formally submitted proposals are going up on Monday, October 10._
        _New Proposals must be posted by October 12 to be eligible for the November Governance Cycle._</sup>


> **October Formal Submission:**
> 
>  - _Endgame MIPs_ -- [3:28](https://youtu.be/0wWfLly2Tzw?t=208)
>  - _Standalone MIPs and misc._ -- [4:34](https://youtu.be/0wWfLly2Tzw?t=274)
>  
> **Proposals in RFC:** 

>  - _Standalone MIPs_ -- [5:37](https://youtu.be/0wWfLly2Tzw?t=337)
>  - _Core Unit Budgets_ -- [6:34](https://youtu.be/0wWfLly2Tzw?t=394)
>  - _Core Unit Mandates_ -- [7:07](https://youtu.be/0wWfLly2Tzw?t=427)
>  - _Weekly-cycle Subproposals_ -- [7:20](https://youtu.be/0wWfLly2Tzw?t=440)  



### Weekly Forum Recap

#### Artem Gordon

[Pre-Recorded](https://www.loom.com/share/ecac9b3b022e46cabdaab7633df7ae96)

<sup> **Visit:** [_Weekly Forum Recap: September 29<sup>th</sup> - October 6<sup>th</sup>, 2022_](https://forum.makerdao.com/t/weekly-forum-recap/16247/22)</sup>

> **News & Announcements:**

> - [_ConsenSys Delegate Platform_](https://forum.makerdao.com/t/consensys-delegate-platform/18246)
> - [_​[Poll Notice] Signal Support for Ending DAI Funding for Sourcecred_](https://forum.makerdao.com/t/poll-notice-signal-support-for-ending-dai-funding-for-sourcecred/18204)
> - [_GUSD & MakerDAO Partnership Announcement_](https://forum.makerdao.com/t/gusd-makerdao-partnership-announcement/18140/1)

> **Signal Requests:**

> - [_[Signal Request] Modify D3M Guidance for MOMC_](https://forum.makerdao.com/t/signal-request-modify-d3m-guidance-for-momc/18069)
> - [_[Signal Request] Change PSM-GUSD-A parameters_](https://forum.makerdao.com/t/signal-request-change-psm-gusd-a-parameters/18142)


## Initiatives Update

### JokeDAO

#### Raphael

[09:25](https://youtu.be/0wWfLly2Tzw?t=565)

<sup>**Visit:** [Using jokedao for soft consensus in governance](https://forum.makerdao.com/t/using-jokedao-for-soft-consensus-in-governance/17673)</sup>

> **Contents:**
> - _Agenda_ -- [9:17](https://youtu.be/0wWfLly2Tzw?t=557)
> - _Try it!_ -- [9:51](https://youtu.be/0wWfLly2Tzw?t=591)
> - _Opportunities_ -- [11:28](https://youtu.be/0wWfLly2Tzw?t=688)
> - _Environment_ -- [13:25](https://youtu.be/0wWfLly2Tzw?t=805)


## Discussion

### MIP81: Coinbase USDC Institutional Rewards

[16:04](https://youtu.be/0wWfLly2Tzw?t=964)

![If this MIP passes, what will the Core Units do?](https://i.imgur.com/2iHN00a.png)


#### GovAlpha(GOV-001):
 - It is all about coordination!
 - Facilitating the "Strategic Finance Core Unit, CES Core Unit, or Growth Core Unit" in creating a proper entity-onboarding Signal Request.
 - Coordinating with technical teams on producing an expected Executive date once a legal entity has been onboarded(and cleared with Coinbase)
 - Facilitating(drafting copy, getting confirmations from stakeholders, merging PRs to list) an executive bundle with a transfer.
 - Putting people in touch for questions and comments. 

#### Strategic Finance (SF-001)

- Seek approval for a specific legal entity, i.e., an arranger. 
- Maker Governance will have control over the funds and access the funds.  

#### Collateral Engineering Service (CES-001) 

- We want to look at the trustless way of considering and base primarily on the feedback we see in the community and some of the concerns raised. That would be my signal if this MIP was passed
- I would highly encourage any of these MIPs to look at our past work, how we have answered the questions, the details around the deal, the legal and regulatory structure, and the technical implementation.
- Before you put up a MIP, talk and gain consensus and agreement of the individual CUs you are requesting work from, and then place the MIP out there. Please reach out. We are here to help.

#### Growth (GRO-001)

- Our main focus is to find the opportunity, the partner. Once it is approved, it is more in the hands of CES, PE, SF, and other CUs, perhaps. 
- As we do with everything inside Maker, we will prepare an announcement, talk with a partner and the people at Maker who helped to onboard or make it happen to work on a PR, and have the announcement everywhere. 
- It is important to remind delegates and the Maker community to look at these deals not as unique but as part of a solution. We have all of this idle capital. What can we do with it? Strategic Finance has presented a framework for taking advantage of that idle capital and increasing revenue for Maker. 


### The Exercise

[33:13](https://youtu.be/0wWfLly2Tzw?t=1993)

![The "Yes and..."](https://i.imgur.com/xlrcKio.png)


## Discussion Segment

[37:03](https://youtu.be/0wWfLly2Tzw?t=2223)

![Discussion Segment](https://i.imgur.com/RyneMqx.png)

- **Payton Rose:** Who would like to start and say something about MIP81?

[39:47](https://youtu.be/0wWfLly2Tzw?t=2387)

- **PaperImperium:** Is there any dark magic we can use to get around the custody downside? Can we get around the risk of giving full custody to Coinbase? 
    - **Robert:** We can explore the trustless option, which allows Coinbase to custody a smart contract. This special function will enable us to claw back if we need to. Before recommending it, we are working with Coinbase to see if this is a real solution. Miguel also made a good point: a trustless solution requires some development, audit, and verification work. A manual solution may be quicker, but we have identified its downsides.
    - **Raphael:** The smart contract is amazing. However, considering Coinbase's perspective, they will have input on the contract's nature. While a smart contract is ideal, it is for the longer term. They have no reason to rush it and will likely stall it, at least for a couple of months.
    - **Mark:** I spoke with Coinbase, and from the beginning, they were interested in an automated and permissionless solution. They want to help us make it a reality. However, the challenges are more on the non-technical side. The DAO needs to decide the liquidity level on-chain. That will determine how much funds are moved back and forth. From this, it makes the most sense to start manually to get cash in the door. Then, we can transition to a new solution.

[46:05](https://youtu.be/0wWfLly2Tzw?t=2765)

- **Raphael:** Have your concerns been addressed from GovAlpha's perspective? 
    - **Patrick:** Yes and no. GovAlpha initially had concerns about the incompleteness of the MIP. It did not fit the template. This concern has been addressed. We still do have concerns from the governance perspective. Specifically, we have concerns about the withdrawal of the funds, their time frame, and the governance process around that. However, this is a legitimate MIP and will go on-chain next week. 

[48:23](https://youtu.be/0wWfLly2Tzw?t=2903)

- **Frank:** The 3F Delegate Platform supports MIP81 and what Gemini has proposed. We want to greenlight this but are also in favor of automation. We would love a trustless environment because custodial services and risk management is missing. This includes transaction, compliance, and credit risks. What are the parameters Risk CU provides to the community? 

[51:07](https://youtu.be/0wWfLly2Tzw?t=3067)

- **Tim Black:** If the MIP fails, will they submit again?
    - **Payton Rose:** I do not have a direct answer, but I believe so. 


[52:19](https://youtu.be/0wWfLly2Tzw?t=3139)

![Stakeholders'?](https://i.imgur.com/3j2TmvG.png)

- **Justin:** I see a situation where the DAO ends the agreement in the future. This MIP asks for a huge portion of the PSM, and the payoff percentage is not significant. We have several things that could utilize the USDC in the PSM. In the future, we might not have that much USDC in the PSM or even a PSM. It is prudent for us to end this agreement if that comes to fruition. It could be a nice baseline if we can manage that risk—however, there are other opportunities to earn more money on our balance sheet than the one percent. 
    - **David Utrobin:** Automating the MIP is not all or nothing. Automation could potentially be done in phases. Before we determine that, we need to confirm with Coinbase their criteria for custody of a smart contract. One of our team members, Nikolai, suggested that if Coinbase can custody a smart contract, it could be as much as taking our MIP21 output conduit. The only way the USDC can be taken out of that smart contract is via return to the PSM. Then, further automation could be done later on. 

[55:58](https://youtu.be/0wWfLly2Tzw?t=3358)

- **PaperImperium:** Does voting on this lock us into a schedule or implementation? Or is it just conceptual? 
    - **Payton Rose:** I would say a level above conceptual. The MIP outlines what happens after it passes. It asks a CU to pass a signal to push this forward. Of course, that gives the option for the entity to get rejected. 

[56:59](https://youtu.be/0wWfLly2Tzw?t=3419)

- **Raphael:** I want to further Patrick's point of auto-signaling when the PSM reaches a certain level. We can say in their arranger agreement that one signal will withdraw funds immediately at a certain level with no executive requirement. 

[58:23](https://youtu.be/0wWfLly2Tzw?t=3503)

- **Payton Rose:** David said in the chat that the implementation requires sign-up from CUs. That is a potential blocking point. Paper has pointed out some questions about implementation that lie in Robert's earlier points. It falls on your shoulders if you do not talk to a CU and expect it to happen. 

[59:09](https://youtu.be/0wWfLly2Tzw?t=3549)

- **Frank:** I would like to address the community question. I see from the telegram chats that people do not think MakerDAO and Dai are cool anymore. If Aave were doing this, you would not hear this chatter. Regardless, this is a huge opportunity for MakerDAO. 

[1:01:45](https://youtu.be/0wWfLly2Tzw?t=3705)

- **Payton Rose:** Considering the Gemini proposal, what other opportunities exist for Maker? Does this open the door to pursuing other partnerships?
    - Chat: The Coinbase MIP is a big deal. Everyone is starting to realize the opportunities of working with Maker. The positive attention given to Maker through this MIP proposal is huge.

## Conclusion

### Payton Rose

[1:08:05](https://youtu.be/0wWfLly2Tzw?t=4085)

- Big thanks for everyone coming out. Check out [forum.makerdao.com](https://forum.makerdao.com/), and see you soon. 

[Suggestion Box](https://app.suggestionox.com/r/GovCallQs)

## Credits

- Andrea Suarez produced this summary.
- Larry Wu produced this summary.
- Kunfu-po produced this summary.
- Everyone who spoke and presented on the call.
