# MIPXYZ: Decentralized Collateral Scope

## Preamble

MIP#: <# to be assigned>
Title: <MIP title>
Author(s): <list of authors' names and/or email addresses and GitHub handles>
Contributors:
Tags: template
Type: MIP Type
Status: <Assigned by MIP Editor>
Date Proposed: <yyyy-mm-dd>
Date Ratified: <yyyy-mm-dd>
Dependencies: <List of dependent MIPs>
Replaces: <List of MIP it is replacing>

## References
- [Maker Protocol Specification](https://makerdao.com/docs/specification)

## Sentence Summary
This MIP outlines the procedures for onboarding and offboarding decentralized assets as collateral within the Maker Protocol.

## Paragraph Summary
This Maker Improvement Proposal (MIP) outlines the procedures for onboarding and offboarding decentralized assets as collateral within the Maker Protocol. This MIP covers the steps involved in the process, the actors involved, the incentives and penalties in place, and the emergency procedures to follow in case of failure. The MIP also includes a description of the software, development environments, and other artifacts used by the actors of the Decentralized Collateral Scope.

## Component Summary
- Actors: describes the roles and responsibilities of the participants involved in the onboarding and offboarding process
- Process: outlines the steps involved in the onboarding and offboarding process, and the order in which they should be carried out
- Incentives and Penalties: outlines the rewards and consequences for actors who follow or violate the procedures described in the process
- Emergencies: outlines the steps to be taken in the event of a failure in the onboarding or offboarding process
- Software and Artifacts: describes the software, development environments, and other artifacts used by the actors of the Decentralized Collateral Scope

## Motivation
The Maker Protocol requires a robust and secure onboarding and offboarding process for decentralized assets to ensure the safety of the protocol and its users. This MIP provides a clear and detailed outline of the process, actors, incentives and penalties, and emergency procedures for onboarding and offboarding decentralized assets.

## Specification / Proposal Details

### Actors

#### Lead Underwriter
The Lead Underwriter is responsible for evaluating the risk of onboarding a decentralized asset as collateral within the Maker Protocol. They are responsible for reviewing the asset's technical and economic viability, as well as its potential for systemic risk to the Maker Protocol. The Lead Underwriter is also responsible for communicating the results of their review to the Decentralized Collateral Committee.

#### Decentralized Collateral Committee
The Decentralized Collateral Committee is a group of trusted individuals responsible for making the final decision on whether to onboard a decentralized asset as collateral. They consider the results of the Lead Underwriter's review, and make a decision based on the best interests of the Maker Protocol and its users.

### Process

#### Onboarding
1. The Lead Underwriter evaluates the risk of onboarding a decentralized asset as collateral within the Maker Protocol.
2. The Lead Underwriter communicates their evaluation to the Decentralized Collateral Committee.
3. The Decentralized Collateral Committee makes a decision on whether to onboard the asset as collateral.
4. If the decision is to onboard the asset, the Lead Underwriter is responsible for implementing the necessary steps to onboard the asset.
5. The Lead Underwriter continuously monitors the performance of the asset and communicates any issues to the Decentralized Collateral Committee.

#### Offboarding
1. The Lead Underwriter identifies a decentralized asset that may pose a risk to the Maker Protocol.
2. The Lead Underwriter communicates their concerns to the Decentralized Collateral Committee.
3. The Decentralized Collateral Committee makes a decision on whether to offboard the asset.
4. If the decision is to offboard the asset, the Lead Underwriter is responsible for