---
# System prepended metadata

title: 'Collateral Call Summary - Episode #06'
tags: [Collateral Call]

---

---
tags: Collateral Call
---

# Collateral Call Summary - Episode #06
August 26th, 2020

## Agenda

- [00:10](https://youtu.be/aG9UU-XPULE?t=10): Intro with Lea Schmidt
- [5:10](https://youtu.be/aG9UU-XPULE?t=310): ShuttleOne with Zhuang Hong Lim
- [25:00](https://youtu.be/aG9UU-XPULE?t=1500): Q&A and Discussion about ShuttleOne
- [31:40](https://youtu.be/aG9UU-XPULE?t=1900): ArCoin with Jerald David, Mason & Jeff Dorman
- [49:50](https://youtu.be/aG9UU-XPULE?t=2990): Q&A and Discussion about ArCoin

## Video

<https://www.youtube.com/watch?v=aG9UU-XPULE>


## Introduction

### Lea Schmidt

#### Agenda and Preamble
[00:10](https://youtu.be/aG9UU-XPULE?t=10)

- Open discussion about the selection process for topics on these calls. How to create a system to organize calls in order to be fair with everyone in the community. For this call: project selection based on the activity in the forum.
- Discussions about collateral happen in the [Forum.](https://forum.makerdao.com/c/risk/collateral-meetings/23)

## ShuttleOne

### Zhuang Hong Lim

- [Credit Application Token (CAT): Global Supply Chain Financing (ShuttleOne) - Forum Thread](https://forum.makerdao.com/t/cat-mip6-application-credit-application-token-cat-global-supply-chain-financing-shuttleone/3633)
- In the forum:

#### Presentation
[5:10](https://youtu.be/aG9UU-XPULE?t=310)

![Cover Slide](https://i.imgur.com/s3vkEmX.png)

![DeFi/Real World assets](https://i.imgur.com/iR3o5jR.png)

![Network](https://i.imgur.com/h85SEmU.png)

![System Overview](https://i.imgur.com/TaMPiWl.png)

![Product Overview](https://i.imgur.com/9K5YDJo.png)

![Enabling Payments](https://i.imgur.com/O72gfrn.png)

![Decentralized Asset Financing](https://i.imgur.com/p9OH1vR.png)

![Trade Financing](https://i.imgur.com/pNLg5U7.png)

![Computer Vision](https://i.imgur.com/kmmj4Nj.png)

![Operational Risk Management](https://i.imgur.com/IVvGsTq.png)

![Demonstration](https://i.imgur.com/eTRIReT.png)

![Demo Result](https://i.imgur.com/I0FGoiG.png)

![Credit Scoring: Cover](https://i.imgur.com/RTE2D4h.png)

![Credit Scoring: Demo](https://i.imgur.com/D7kzs86.png)

![Credit Scoring: Demo #2](https://i.imgur.com/oTQv3Z5.png)

![Decentralized Finance Disbursement](https://i.imgur.com/oriJDil.png)

![Cross Border Trade Financing](https://i.imgur.com/p4a8gpV.png)

![The Business](https://i.imgur.com/6PghTda.png)

![Summary](https://i.imgur.com/tfyFXTs.png)

![The Team](https://i.imgur.com/bFGmNoZ.png)

![Closing Slide](https://i.imgur.com/Ah287FH.png)

#### Discussion

- [25:00 - Akash: How do you make sure that the bank statement that is produced using computer vision to read is not fraudulent?](https://youtu.be/aG9UU-XPULE?t=1500)
- [25:00 - Akash: Is the collateral in the Maker system a tradable asset and at what point does it have a bad price and needs to be liquidated?](https://youtu.be/aG9UU-XPULE?t=1500)
- [25:00 - Akash: How do the Auction Keepers buy that collateral and how do they value it?](https://youtu.be/aG9UU-XPULE?t=1500)
- [28:50 - Akash: Would there be a tradable market for this collateral tokens? If the value falls, does the MakerDAO system deploys the auction for these collaterals so that some auction vault has to buy it and return Dai to the system?](https://youtu.be/aG9UU-XPULE?t=1730)

## ArCoin

### Jerald David, Jeff Dorman, Mason

- [[ARCA] ArCoin MIP6 Collateral Onboarding Application](https://forum.makerdao.com/t/arca-arcoin-mip6-collateral-onboarding-application/3544)
- In the forum: @blair

#### Presentation
[31:40](https://youtu.be/aG9UU-XPULE?t=1900)

![Cover](https://i.imgur.com/n2oFzjj.png)

![Claims - hay una palabra pero no me viene](https://i.imgur.com/Or0nx1C.png)

![The Team](https://i.imgur.com/T7g0UNC.png)

![Commitment](https://i.imgur.com/WWjqXJt.png)

![Treasury Fund](https://i.imgur.com/maIvd56.png)

![Providers/Partners](https://i.imgur.com/Lh6gYnC.png)

![Fund Attributes](https://i.imgur.com/AD8L2Hn.png)

![Reliability](https://i.imgur.com/G02Nsm4.png)

![ArCoin Bridge Cover](https://i.imgur.com/o6M3rQ4.png)

![Product Transformation ARC](https://i.imgur.com/jaeK6yO.png)

![Why is ArCoin well suited for Maker?](https://i.imgur.com/fKI1yLl.png)

![ArCoin Keeper Governance](https://i.imgur.com/L5aKuEz.png)

![ArCoin Liquidation Process](https://i.imgur.com/fV3DTtA.png)

![ArCoin Liquidity DAO](https://i.imgur.com/vKR1uN6.png)

![ArCoin Disclosures](https://i.imgur.com/tlVApZm.jpg)

#### Discussion

- [49:50 - Akash: How does the Maker Protocol gets KYCed to accept this as a collateral?](https://youtu.be/aG9UU-XPULE?t=2990)
- [51:10 - Akash: The yielding need to be higher than the DSR to avoid arbitrage opportunities. Does that make sense?](https://youtu.be/aG9UU-XPULE?t=3070)
- [53:25 - Akash: Since ArCoin is a low-yielding product, what would be an acceptable stability fee for most users? What is the upper bound on the stability fee?](https://youtu.be/aG9UU-XPULE?t=3205)
- [56:45 - Akash: If the Keeper ends up buying this ArCoin through an auction/liquidation, what's the process to redeem and get the treasuries and liquidate that?](https://youtu.be/aG9UU-XPULE?t=3405)
- [57:10 - Akash: Could the same concept be extended to other collateral types besides US treasuries?](https://youtu.be/aG9UU-XPULE?t=3430)
- [1:01:30 - Akash: Can the whole model be extended to other assets like ETFs or other securities that could be bundled up in this form?](https://youtu.be/aG9UU-XPULE?t=3690)
- [1:02:20 - Akash: Anyone in the world can apply for KYC to buy or sell this ArCoin, right?](https://youtu.be/aG9UU-XPULE?t=3740)

## Closing Comment

### Lea Schmidt

#### Outro
[1:03:20](https://youtu.be/aG9UU-XPULE?t=3800)

- Thanks, everyone for joining.
- If you want to present your project, please leave a note in [this Forum Post](https://forum.makerdao.com/t/collateral-calls-calling-all-projects/3715/).

## Credits

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