Collateral Onboarding Guide: How to Nominate Tokens for MCD

July 9, 2019

A key to the success of Multi-Collateral Dai (MCD) is ensuring the system supports dynamic and diverse collateral types. Today, we’re publishing proposed guidelines and information to help the Maker Community and token projects suggest tokens that they believe will benefit MakerDAO and Dai. 

The Collateral Onboarding Guide, which includes the Application Form, provides helpful information for any community member or token provider looking to suggest their favorite collateral types for inclusion in MCD. It also offers guidance for independent risk teams that want to make risk parameters for new collateral types. 

What Now?

The Maker community must complete a number of governance tasks, particularly those concerning the ratification of new collateral types, before we can launch MCD. To make the process as efficient as possible, we’ve re-organized the typical governance cycle to handle the extra work.

In the coming weeks we will propose a new collateral onboarding and evaluation process, which will be divided into a number of phases:

  1. Request for Proposals: Documents are published to the MakerDAO forum for debate and feedback.
  2. Request for Comments: The community collects formal feedback on the proposals. 
  3. Finalization: Multiple polls are conducted to determine voter sentiment toward each proposal.
  4. Final Signals: A single governance poll encapsulates all the approved proposals.
  5. Executive Vote: An executive vote activates the collaterals and their parameters.

We anticipate that this cycle of proposal, evaluation, debate, and ratification will take approximately one month to complete for each bundle of assets. We will repeat the process until the launch of MCD.

After the first seven types of proposed collateral are considered by MKR voters, the Risk team will begin evaluating the collateral proposals submitted through the Application Form. 

Publishing the Collateral Onboarding Guide and Application Form is an important milestone on the path to MCD. It’s also another step toward full decentralization of the Maker Protocol. Continued community discussion, debate, and guidance is essential to ensuring that we work together to bring financial stability and transparency to the world economy.

Read the Collateral Onboarding Guide.

July 9, 2019