--- tags: Snippets --- # G&R #158 Snippet This `snippet` includes Governance, MIPs, forum updates, and Core Unit team discussions from the MakerDAO Governance and Risk Call #158. ## General Updates ### Votes *Executive:* - [Executive](https://vote.makerdao.com/executive/template-executive-vote-parameter-changes-september-core-unit-budgets-dssvest-streams-september-3-2021?network=mainnet#proposal-detail) - Parameter Changes, September Core Unit Budgets, DssVest Streams - September 3, 2021. - Passed Sept. 4th. - Decreasing Flash Mint Fee (toll), increasing PSM-PAX-A Debt Ceiling, distributing Core Unit Budgets, and establishing DssVest streams for budgets and MKR vesting. - No planned Executive Proposal for tomorrow. *Polls:* - No poll results this week. - 2 Greenlight Polls active (voting ends Mon. Sept 20th): - [RARE (SuperRare)](https://vote.makerdao.com/polling/QmPs96dJ?network=mainnet#poll-detail) - [RAI (Rai Reflex Index)](https://vote.makerdao.com/polling/QmY7XB7L?network=mainnet#poll-detail) ### MIPs [Weekly MIPs Update #52](https://forum.makerdao.com/t/weekly-mips-update-52/10192) ![](https://i.imgur.com/2t1Fihr.png) - The first Monday of the month is here, and the Formal Submission Window for September is now open. The following proposals are eligible to make it into this month’s Governance Cycle. ### Forum at a Glance [Forum at a Glance: September 3rd - September 9th](https://forum.makerdao.com/t/forum-at-a-glance-september-3rd-9th/10241) ## Team-led Discussions ### Growth #### Institutional Vaults [Growth CU Weekly Update](https://forum.makerdao.com/t/growth-cu-weekly-update-september-3-september-9/10246) - We have a new integrations leader, @zxMori. - We posted a question for the community concerning us sponsoring the ETHOnline hackathon. Please leave feedback! - After the Nexo Institutional Vault, we will be looking at ETH and BTC. - Currently working with legal and compliance teams to help find a solution to open Institutional Vaults with traditional companies. - Main concern is changing the current proposal because Nexo will have to decide to agree on them. - Pros, cons, and clarifications: - Nexo Vault risk parameters can be improved; how do we renegotiate the loan terms after its 6-month period? - We may have to potentially increase the SF based on market conditions, which is a concern. - Potential to someday have high portfolio exposure to fixed-rate vaults, which can promote high SFs. - Implementation of DssCharter is at 200%, and LR is at 120% for the Nexo Vault, which can cause complications to borrowers unwinding. - Institutional Vaults is a way to increase the total size of our Vaults by having professionally committed users minting DAI. - Nexo will be using the [Fireblocks](https://www.fireblocks.com/platforms/all-features-and-integrations/) interface to manage their Vaults. - Institutional Vaults can help promote increased DAI supply and allow smaller participants to use the MCD again, which is currently expensive. - Tokens using Maker Vaults: - Loopring wants to provide a service to their customers by offering Maker Vaults. This can potentially extend to other Institutional Vault companies as well. - We should essentially set specific agreements with these quality projects that benefit both parties and helps mitigate risk. - Nik responds that we had an agreement with Polygon, who fell through those agreements and wasted DAI. - The [Impossible Trinity Issue](https://medium.com/@davidjlu/the-impossible-trinity-of-stablecoins-4de7d17d373c) poses a potential long-term threat for fixed-rate Vaults. We need to think very carefully going forward, especially with rates, which should move with the market to manage the capital flow. However, PaperImperium thinks otherwise because there is not enough pressure on the DAI peg. ### Risk #### Offboarding Vaults - Thinking of changing auction parameters for top-tier Vaults. - Propose a faster execution with a set of parameters to lower the duration and thereby increase auction throughput and amount. - Creating a risk-scoring methodology for Vaults on the Risk Dashboard. - Also, creating an additional risk score on Vault safety. - There have been some on and off decisions regarding offboarding low-tier collaterals. - Risk believes that these low-tier collaterals are risky because they have very high slippage. - Difficult to offer more than a 10M DC, which may not even cover oracle costs. - Data on Compound and Aave shows that low-tier collaterals promote very little use; a few million DAI generated. - Maker is not well-positioned for such risky assets due to our inability to cross-collateralize. ### Oracles #### Offboarding Vaults - Continued discussion from Risk (above): - Onboarding low-tier DeFi tokens is sustainable on L1 only if the collateral generates a significant amount of DAI. - There has not been enough experimentation, and the ones that were onboarded did not have much traction. - Being favorable by other tokens and teams does not compensate for the risk they provide. - We need to be more liberal when considering onboarding and offboarding tokens. - We can offboard these low-tier collaterals for now. When they become profitable, we can then onboard them again. - These tokens are currently not helping to increase DAI supply; Time is better spent elsewhere. - MakerMan: We need to focus on the big fish and stop wasting time with the small fries. - Maker’s competition is tough, and we need to match the competitive strategy at least if not do better. These mistakes can leave us in the dust. - We need to set strict requirements for onboarding and offboarding.