Executive Vote: Urgent configuration change to the ETH lump size, Increase the WBTC-A debt ceiling

7 August 2020

The Governance Facilitators and the Maker Foundation Smart Contracts Team have placed an Executive Vote into the voting system which will enable the community to approve the following alterations to the protocol.

Urgent Configuration change to the ETH lump size

The MakerDAO Smart Contracts Domain Team have discovered a risk present in the Maker Protocol that needs to be addressed as a matter of urgency. In order to mitigate this risk the Smart Contracts Team suggest that the ETH lump parameter should be reduced from 500 ETH to 100 ETH. Further details of this issue can be reviewed here.

The lump parameter is also known as the 'Auction Lot Size' and determines the size of the auction lots when liquidating collateral in the Maker Protocol.

Increase the WBTC-A debt ceiling

As per the community signal request located here, this proposal asks whether the WBTC-A Debt Ceiling should be increased from 40 million to 80 million. This proposal has successfully met the requirements to be expedited as an emergency action based on the community response within that signal request.

This expedited action is being taken in response to DAI consistently trading above peg for the past few months.

Summary

Therefore, if this Executive proposal passes the following will occur:

  • The WBTC-A Debt Ceiling will increase from 40 million to 80 million.
  • The ETH lump parameter will decrease from 500 ETH to 100 ETH.

The Executive Vote (FAQ) will continue until the number of votes surpasses the total in favor of the previous Executive Vote. This is a continuous approval vote.

Review

Community debate on this topic can be found here and here. Please review this thread to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video and Audio for these calls is available to review.

Action

Voting for this proposal will place your MKR in support of implementing the changes outlined above.


Resources

If you are new to voting in the Maker Protocol, please see the voter onboarding guide to learn how to use this dashboard and set up your wallet to vote.

Additional information about the Governance process can be found in the Governance Risk Framework: Governing MakerDAO

To participate in future Governance calls, please join us every Thursday at 16:00 UTC.

To add current and upcoming votes to your calendar, please see the MakerDAO Public Events Calendar.

7 August 2020