---
tags: G&R
---

# Episode #217: December 1st, 2022

## Agenda

- [0:00](https://youtu.be/BlkfPrLVjBc): Introduction
- [2:52](https://www.youtube.com/watch?v=BlkfPrLVjBc&t=172s): Votes and Polls
- [4:44](https://www.youtube.com/watch?v=BlkfPrLVjBc&t=284s): MIPs Update
- [9:31](https://youtu.be/BlkfPrLVjBc?t=571): Weekly Forum Recap
- [16:17](https://youtu.be/BlkfPrLVjBc?t=977): Initiative: _TechOps Q&A_
- [50:48](https://www.youtube.com/watch?v=BlkfPrLVjBc&t=3048s): Initiative: _CES Team Update_
- [1:00:40](https://www.youtube.com/watch?v=BlkfPrLVjBc&t=3640s): Initiative: _ETHGathering Outcomes_
- [1:04:00](https://www.youtube.com/watch?v=BlkfPrLVjBc&t=3840s): Discussion: _Existential Exposure & Mitigation_

## Video

[Link](https://youtu.be/BlkfPrLVjBc)

## General Updates

### Votes

#### Payton Rose

[2:52](https://youtu.be/BlkfPrLVjBc?t=172)

^{**Visit:** [_Voting Portal_](https://vote.makerdao.com/)}

> **Votes:**
> - *Polls* -- [3:03](https://youtu.be/BlkfPrLVjBc?t=183)
> - *Executive Proposals* -- [3:38](https://youtu.be/BlkfPrLVjBc?t=218)

### MIPs

#### Gala

[4:44](https://youtu.be/BlkfPrLVjBc?t=284)

^{**Visit:** [_Weekly MIPs Update #115_](https://forum.makerdao.com/t/weekly-mips-update-115/18956) & [_MakerDAO Votes and Polls Public Calendar_](https://calendar.google.com/calendar/embed?src=bdf4un05hpg0611lg3ieue4t3c%40group.calendar.google.com&ctz=America%2FNew_York)}
^{**Important Dates:** _New proposals must be posted by Wednesday, December 7^th, at the latest, to be eligible for the next monthly cycle._}

> **Ratification Polls:**
> - _Top-Level MIPs_ -- [5:09](https://youtu.be/BlkfPrLVjBc?t=309)
> - _Core Unit Budgets_ -- [5:48](https://youtu.be/BlkfPrLVjBc?t=348)
> - _Miscellaneous_ -- [6:21](https://youtu.be/BlkfPrLVjBc?t=381)

> **Proposals in RFC:**
> - _All_ -- [6:58](https://youtu.be/BlkfPrLVjBc?t=418)

### Weekly Forum Recap

#### Artem Gordon

[9:31](https://youtu.be/BlkfPrLVjBc?t=571)

^{**Visit:** [_Weekly Forum Recap: November 24^th - November 30^th, 2022_](https://forum.makerdao.com/t/weekly-forum-recap/16247/34)}
^{**Video:** [Link](https://youtu.be/zZwkLq21zGk)}

> **News & Announcements:**
> - [_Moving 30^th Nov and 7^th Dec Executives to Friday of each week_](https://forum.makerdao.com/t/moving-30th-nov-and-7th-dec-executives-to-friday-of-each-week/18990)
> - [_Fallback Interim Facilitator Selection Process - CES-001_](https://forum.makerdao.com/t/fallback-interim-facilitator-selection-process-ces-001/18911/31)
> - [_Attention RENBTC-A Users: Collateral Offboarding_](https://forum.makerdao.com/t/attention-renbtc-a-users-collateral-offboarding/18923)
> - [_MIP4c2-SP30: Amend Interim Facilitator Appointment Process_](https://forum.makerdao.com/t/mip4c2-sp30-amend-interim-facilitator-appointment-process/18951)

> **Discussion:**
> - [_A Better Prioritization System for MakerDAO_](https://forum.makerdao.com/t/a-better-prioritization-system-for-makerdao/18949)
> - [_Discussion on Existential Exposure and Mitigation_](https://forum.makerdao.com/t/discussion-on-existential-exposure-and-mitigation/18931)

## Discussion

### Initiative: _TechOps Q&A_

#### Dumitru

[16:17](https://youtu.be/BlkfPrLVjBc?t=977)

> **Contents:**
> - _Team_ -- [17:04](https://youtu.be/BlkfPrLVjBc?t=1024)
> - _Mandate_ -- [18:48](https://youtu.be/BlkfPrLVjBc?t=1128)
> - _Responsibilities_ -- [19:51](https://youtu.be/BlkfPrLVjBc?t=1191)
> - _Infrastructure_ -- [21:11](https://youtu.be/BlkfPrLVjBc?t=1271)
> - _Keepers/Monitoring_ -- [22:38](https://youtu.be/BlkfPrLVjBc?t=1358)
> - _Blockchain Nodes_ -- [24:37](https://youtu.be/BlkfPrLVjBc?t=1477)
> - _Alerts and Notifications_ -- [25:13](https://youtu.be/BlkfPrLVjBc?t=1513)
> - _Analytics Dashboards_ -- [26:28](https://youtu.be/BlkfPrLVjBc?t=1588)
> - _2023 Plan - Transition to Endgame_ -- [28:16](https://youtu.be/BlkfPrLVjBc?t=1696)
> - _TechOps CU Contacts_ -- [30:37](https://youtu.be/BlkfPrLVjBc?t=1837)

##### Q&A

[31:47](https://youtu.be/BlkfPrLVjBc?t=1907)

- **Frank Cruz:** Can you describe how you send notifications to large vault holders getting liquidated? Is the monitoring dashboard you showed us public or private?

[36:51](https://youtu.be/BlkfPrLVjBc?t=2211)

- **Frank Cruz:** Why do you believe it would be more efficient for TechOps to run the MakerDAO forum as opposed to another CU?

[39:03](https://youtu.be/BlkfPrLVjBc?t=2343)

- **David Utrobin:** How would you respond to the accusation of TechOps _double-dipping_ by charging CUs for various services while also having a budget?

[42:45](https://youtu.be/BlkfPrLVjBc?t=2565)

- **Simon:** I will go back to Frank's question about managing the forum. Having a globally-composed team is an advantage over other CUs; we can keep a continuous flux of work to offer constant troubleshooting for whatever arises in the forum just by having people living in various time zones at a time.

[44:29](https://youtu.be/BlkfPrLVjBc?t=2669)

- **Santiago Botto:** Some people have mentioned that a lot of the work in infrastructure that TechOps is doing for other CUs could be managed by themselves. They could, but are the workers willing to do the extra research and work? Typically, this can result in low morale and, most likely, in asking for bigger budgets to hire more people to do the job. I would not recommend developers focus on infrastructure or vice versa.

[46:48](https://youtu.be/BlkfPrLVjBc?t=2808)

- **Frank Cruz:** How in tune is TechOps with the Endgame Plan, budget-wise?

## Discussion

### Initiative: _CES Team Update_

#### Retro

[50:48](https://youtu.be/BlkfPrLVjBc?t=3048)

> **Contents:**
> - _Interim Facilitator Focus_ -- [51:15](https://youtu.be/BlkfPrLVjBc?t=3075)
> - _Work requirements, timelines and deliverables_ -- [53:38](https://youtu.be/BlkfPrLVjBc?t=3218)

##### Q&A

[55:14](https://youtu.be/BlkfPrLVjBc?t=3314)

- **Frank Cruz:** Regarding MIP81, is CES still thinking about working on a smart contract?

[58:49](https://youtu.be/BlkfPrLVjBc?t=3529)

- **Retro:** To answer Tim's question about the Interim Facilitator term, the MIP recommends two months, although we hope to have a concrete timeline towards the end of December. CES has funding approved through April 1^st, which will afford us a timeline to prepare for the proper transition to an Endgame-ready team.

## Discussion

### Initiative: _ETHGathering Outcomes_

#### Tadeo

[1:00:40](https://youtu.be/BlkfPrLVjBc?t=3640)

> **Contents:**
> - _Overview_ -- [1:01:07](https://youtu.be/BlkfPrLVjBc?t=3667)
> - _UNFUZZ Endgame by Deniz_ -- [1:02:18](https://youtu.be/BlkfPrLVjBc?t=3738)

##### Q&A

[1:03:13](https://youtu.be/BlkfPrLVjBc?t=3793)

- **Tadeo:** To Schuppi's comment about redoing this in Denver, that is a good point. We should have more information and developments by then, and I should be able to work through any topics that might not be fully fleshed out yet.

## Discussion

### Discussion: _Existential Exposure & Mitigation_

#### Hexonaut, Risk CU & Others

[1:04:00](https://youtu.be/BlkfPrLVjBc?t=3840)

> **Contents:**
> - _Preamble_ -- [1:04:31](https://youtu.be/BlkfPrLVjBc?t=3871)
> - _Defining "Existencial Exposure"_ -- [1:05:36](https://youtu.be/BlkfPrLVjBc?t=3936)
> - _Key Ideas_ -- [1:08:22](https://youtu.be/BlkfPrLVjBc?t=4102)

##### Q&A

[1:10:37](https://youtu.be/BlkfPrLVjBc?t=4237)

- **Raphael:** Apparently, our current reporting on the state of debt is complicated. It is necessary to level up in that regard. How confident are you in the RWA monitoring?

[1:12:30](https://youtu.be/BlkfPrLVjBc?t=4350)

- **Brian:** The original plan for Maker's system was for MKR holders to take losses. Generally, the system should be risk-managed to be able to cover any losses and, if not, to be able to do so with MKR sales. Taking a 500M DAI hit right now translates into putting a 10% hole in DAI value.
- We cannot cover that with the Surplus Buffer. The next step would be to sell MKR to recover that loss, and a chain of side effects would come from that. Given a crisis in confidence in the DAI backing, our traditional vault-holders will leave, the PSMs will quickly drain, and that 10% hole that we had can rapidly become much larger.
- That takes the risk off MKR holders and puts it on DAI holders. Lacking a better term, in crypto, we call that a _rug-pull._ In the last few months, we have seen the collapses of FTX, Blockfi, and Celsius. It only takes one of these secondary counterparties of us to fail. As Sam said before, we need a plan for this.

[1:17:04](https://youtu.be/BlkfPrLVjBc?t=4624)

- **Payton Rose:** With the implementation of the Endgame Plan, all of the RWA lendings will happen through Protector MetaDAOs, which should have a first-loss junior position setting up a revenue stream for taking on first losses.
- **Frank Cruz:** As an example, if Viridian, managing MIP65 on behalf of the DAO, shifted that MIP to their Cluster and eventually something went wrong, that first hit should be covered by the MetaDAO and the Core, MKR token holders, would not be affected?

[1:21:37](https://youtu.be/BlkfPrLVjBc?t=4897)

- **Justin:** MKR holders should be at risk should anything fail. And that is why it is fundamental to ensure that the MKR token carries and increases in value so that we are able to bear more risk on the token itself.
- We have to grow the Surplus Buffer. To do that, we are in a situation where we have to take on extra risk because we are in a negative profit scenario.
- Everything is connected; all of the initiatives for reducing expenses while increasing revenue are pulling us in the right direction.
- We need to find ways to minimize existential risk. To me, that means any loss in excess of the Surplus Buffer. That puts us in a situation where DAI holders take the cut unless we can make up the shortfall with MKR tokens, which we cannot do unless we maintain a certain value.

[1:23:54](https://youtu.be/BlkfPrLVjBc?t=5034)

- **Sam:** As a next step, we should define a number for existential exposure, and that should not be as simple as saying that it is a number higher than the Surplus Buffer. Not differentiating between 5 Million and 5 Billion in exposure is a mistake.

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

## Credits

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