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# System prepended metadata

title: 'G&R #168 Snippet'
tags: [Snippets]

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tags: Snippets
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# G&R #168 Snippet

This `snippet` includes Governance, MIPs, forum updates, and Core Unit team discussions from the MakerDAO Governance and Risk Call #168. 

## General Updates

### Votes

*Executive:*
- Last Week’s executive - PASSED & EXECUTED
    - Parameter Changes to GUNI, WSTETH, D3M
    - 218,059.10 DAI Returned to the Surplus Buffer
- Executive proposal up for vote tomorrow. Will include:
    - WBTC-B Onboarding
    - WBTC Stability Fee Changes
    - Local Liquidation Limit (ilk.hole) Changes
    - Change of Covenants for P1-DROP (Peoples Company Series 1)
    - Offboarding Collaterals

*Polls:*
- 6 Weekly Polls - PASSED
    - [Local Liquidation Limit Adjustments for ETH-A, ETH-B, ETH-C, WBTC-A and WSTETH-A](https://vote.makerdao.com/polling/QmQN6FX8?network=mainnet#poll-detail)
    - [Rates Proposal (WBTC Stability Fees)](https://vote.makerdao.com/polling/QmRUgsvi?network=mainnet#poll-detail)
    - [Change of Covenants for P1-DROP (Peoples Company Series 1)](https://vote.makerdao.com/polling/Qma62bse?network=mainnet#poll-detail)
    - [Offboard the AAVE-A Vault Type](https://vote.makerdao.com/polling/QmPdvqZg?network=mainnet#poll-detail)
    - [Offboard the BAL-A Vault Type](https://vote.makerdao.com/polling/QmcwtUau?network=mainnet#poll-detail)
    - [Offboard the COMP-A Vault Type](https://vote.makerdao.com/polling/QmRDeGCn?network=mainnet#poll-detail)
- 2 New Greenlight Polls (Vote ends on Monday)
    - [SB-frOGI (SolidBlock Red Frog Digital Coin)](https://vote.makerdao.com/polling/QmYGUEFy?network=mainnet#poll-detail)
    - [MONETALIS (Monetalis Wholesale SME Green Growth Lending)](https://vote.makerdao.com/polling/QmS52AtS?network=mainnet#poll-detail)
- 8 Ratification Polls close Monday - 2021-11-22

### MIPs

[Weekly MIPs Update #62](https://forum.makerdao.com/t/weekly-mips-update-62/11653)

![](https://i.imgur.com/73RYD9P.png)

- The Ratification Polls for November are now entering their second and final week.

### Forum at a Glance

[Forum at a Glance: November 11 - 18](https://forum.makerdao.com/t/forum-at-a-glance-november-11-18/11713)

## Team-led Discussions

### Bear Market Market Condition Prep

#### Are We Prepared? How Do We Prepare?

- PSM gets filled during bear markets because people rush to repay loans.
    - But how high can we afford to go in USDC on centralized stablecoins?
    - People will liquidate volatile positions to less risky assets.
- Bear market may drop yields during farming and reduce stablecoin saving/lending due to increased risk.
    - A stablecoin unwinding is a low-chance possibility.
- Any immediate spike in demand will deflate over time as fear elleviates in the markets.
- Have there been any simulations created for multiple collaterals over time in bear markets?
    - Primoz: Yes, you can simulate that yourself in the Risk Dashboard.
    - We began developing a framework called Asset Liability Management.
- Some assets like renBTC and UniV2 are difficult to liquidate large vaults.
    - These assets are not ready for a giant liquidation wave.
    - Auction demo keeper did not perform well.
    - PE CU is trying to handle UniV3 to be able to handle such a situation and add a good liquidator. 
- Things to do to be prepared: update liquidation keepers.
- However, liquidating large Vaults would take way too long, which provides potential open market risk.
    - Liquidating smaller chunks allows borrowers to save themselves.

#### What Happens in the Event of Sudden Loss or Invalidation of Collateral?

- Emergency Playbook by Davidutro:
    - During an emergency, the following occurs:
        - Communications coordination.
        - Technical coordination.
        - General coordination.
        - Etc coordination.
    - The Emergency Playbook documents and connects all coordination processes as clearly and successfully as possible.
- It's important to communicate and get auction keepers to participate in auctions during such bad events.
- Need to double check Signal Group and check all the auction keepers info.
    - Make sure everything still works and who is active/inactive.
    - However, keepers are very private and competitive about their operations; it's difficult to get any contact information about them.
    - Keepers are highly incentivized by profits. 
- Should new collateral types require a period of mandatory fire drills for their liquidation systems?
    - Test experiences help Maker improve and better-prepare for actual events. 
    - We need to immediately update keepers for ability to perform easier liquidations
- What happens if we lose network access?
    - Losing access to memory pool or nodes causes prices to continue to fall.
    - However, we have a cusp where after X% of a price fall forces auctions to be redone.
    - We should have a backup network like L2 where we can source liquidity on it.
        - Wormholing should help solve this.
- In future, most capital will move to L2s.
    - We will need everything on L1 to be integrated and adopted into the new L2 world.
    - Also, how long will it take for this to happen? Potentially, sooner than we think.
- How can we educate our Vault users to use risk-mitigation tools?
    - Yes, this is super important and Vault protection promotes more income because users apply higher risk.
- Alternate unhappy perspective:
    - Market crash happens and we proceed with buy/burn.
    - We get surplus from penalties to buy MKR, but then market dips even more! We end up with more bad debt.
    - Will cause to reprint more MKR than was burned.
- We should be agnostic towards what solutions to use but instead focus on educating Vault users on all solutions.
    - Basic information is currently available in the community portal; more information coming soon.
    - Reach out to Content Production for any ideas and feedback on this.
- What if during a market liquidation, users stick to central stablecoins and don't use Dai?
    - This can cause peg to break highs.
- We don't need USDC or other stablecoins to do a PSM now! We can do it ourselves.