Executive Vote: Onboarding Uniswap V2 LPTs, Parameter Updates

February 19, 2021

The Governance Facilitator(s) and the MakerDAO Smart Contracts Domain Team have placed an Executive Vote into the voting system. MKR Holders should vote for this proposal if they support the following alterations to the Maker Protocol.

Increase ETH-A Maximum Debt Ceiling

As per the outcome of this poll, the ETH-A Maximum Debt Ceiling will be increased from 1.5 billion DAI to 2.5 billion DAI if this executive proposal passes.

For further details and discussion around this proposed change, check the signal thread here.

Increase the System Surplus Buffer

As per the outcome of this poll, the System Surplus Buffer will be increased from 10 million DAI to 30 million DAI if this executive proposal passes.

For further details and discussion around this proposed change, check the signal thread here.

Debt Ceiling Instant Access Module Parameters for Multiple Vault Types

Given the successful outcome of the DC-IAM parameter poll, the LRC-A, BAT-A, BAL-A, MANA-A, ZRX-A, KNC-A, and RENBTC-A vault types will be enabled on the DC-IAM with the parameters listed in that poll if this executive proposal passes. The parameters for each vault type are listed in the summary section below.

Further details and discussion around this proposed change can be found in this signal thread.

Onboarding UNI-V2-WBTC-DAI

As per this poll, UNI-V2-WBTC-DAI will be onboarded as the vault type UNIV2WBTCDAI-A if this executive proposal passes. UNIV2WBTCDAI-A will be initialized with the parameters shown below.

Please review the following forum threads containing information about UNI-V2-WBTC-DAI (UniswapV2 WBTC-DAI LP Token) to inform your position before voting.

Onboarding UNI-V2-AAVE-ETH

As per this poll, UNI-V2-AAVE-ETH will be onboarded as the vault type UNIV2AAVEETH-A if this executive proposal passes. UNIV2AAVEETH-A will be initialized with the parameters shown below.

Please review the following forum threads containing information about UNI-V2-AAVE-ETH (UniswapV2 AAVE-ETH LP Token) to inform your position before voting.

Increase the DAI Savings Rate (DSR)

As per the outcome of this poll, the DAI Savings Rate will be increased from 0% to 0.01% if this executive proposal passes.

For further details and discussion around this proposed change, check the signal thread here.

Revoke Stablecoin Permissions for Liquidations Circuit Breaker

As per this forum post from the MakerDAO Smart Contracts Domain Team, the Liquidations Circuit Breaker (FlipperMom) will no longer have permission to enable liquidations on PSM-USDC-A and UNIV2USDCDAI-A if this proposal passes. This will mean liquidations cannot be enabled for these vault-types without waiting for the GSM Pause Delay. Please see the linked thread for further details on this proposed change.

Summary

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

Collateral Onboarding

  • The UNIV2WBTCDAI-A vault type will be added using UNI-V2-WBTC-DAI as collateral with the parameters listed above.
  • The UNIV2AAVEETH-A vault type will be added using UNI-V2-AAVE-ETH as collateral with the parameters listed above.

Debt Ceiling Instant Access Module

  • The DC-IAM will be activated for LRC-A with the following parameters
    • Maximum Debt Ceiling (line): 10 million DAI
    • Target Available Debt (gap): 2 million DAI
    • Ceiling Increase Cooldown (ttl): 12 hours
  • The DC-IAM will be activated for BAT-A with the following parameters
    • Maximum Debt Ceiling (line): 3 million DAI
    • Target Available Debt (gap): 1 million DAI
    • Ceiling Increase Cooldown (ttl): 12 hours
  • The DC-IAM will be activated for BAL-A with the following parameters
    • Maximum Debt Ceiling (line): 5 million DAI
    • Target Available Debt (gap): 1 million DAI
    • Ceiling Increase Cooldown (ttl): 12 hours
  • The DC-IAM will be activated for MANA-A with the following parameters
    • Maximum Debt Ceiling (line): 2 million DAI
    • Target Available Debt (gap): 500 thousand DAI
    • Ceiling Increase Cooldown (ttl): 12 hours
  • The DC-IAM will be activated for ZRX-A with the following parameters
    • Maximum Debt Ceiling (line): 5 million DAI
    • Target Available Debt (gap): 1 million DAI
    • Ceiling Increase Cooldown (ttl): 12 hours
  • The DC-IAM will be activated for KNC-A with the following parameters
    • Maximum Debt Ceiling (line): 5 million DAI
    • Target Available Debt (gap): 1 million DAI
    • Ceiling Increase Cooldown (ttl): 12 hours
  • The DC-IAM will be activated for RENBTC-A with the following parameters
    • Maximum Debt Ceiling (line): 2 million DAI
    • Target Available Debt (gap): 500 thousand DAI
    • Ceiling Increase Cooldown (ttl): 12 hours

Other Parameter Changes

Other Changes

  • The Liquidations Circuit Breaker permissions over PSM-USDC-A will be revoked.
  • The Liquidations Circuit Breaker permissions over UNIV2USDCDAI-A will be revoked.

This Executive Vote will continue until the number of votes in favor surpasses the votes in favor of the currently leading proposal. This is a continuous approval vote.

If this executive vote does not pass within 30 days then it will expire and have no effect on the Maker Protocol, even if it should later pass.

Note that this proposal will include an office-hours modifier that means it can only be cast between 14:00 and 21:00 UTC, Monday - Friday. This is to ensure that at least some auction keepers are available to react to unforeseen issues with their bots in the event of early liquidations.

Review

Community debate on these topics can be found on the MakerDAO governance forum. Please review any linked threads to inform your position before voting.

Additionally, these changes may have been discussed further in recent Governance calls. Video 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 voting guide to learn how voting works, and this wallet setup guide to set up your wallet to vote.

Additional information about the Governance process can be found in the Governance section of the MakerDAO community portal.

To participate in future Governance calls, please join us every Thursday at 17:00 UTC.

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

February 19, 2021

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