Executive Vote: Reduce the Base Rate, Whitelist DyDx on the ETHUSD Oracle

31 July 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.

Reduce the Base Rate

As per the weekly Base Rate poll the Base Rate meta-parameter will be reduced from 0% to -4% if this proposal passes.

Stability Fees are calculated from the Base Rate and Risk Premiums using the formula Stability Fee = max(Base Rate + Risk Premium, 0%)Please note that a negative Base Rate does NOT imply negative Stability Fees.

Whitelist DyDx on ETHUSD Oracle

As per the MIP10c9-SP5 poll that took place under the weekly cycle DyDx will be whitelisted on the ETHUSD Oracle if this proposal passes.

Summary

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

  • The Base Rate meta-parameter will be reduced from 0% to -4%.
  • The WBTC-A Stability Fee parameter will be reduced from 2% to 0%.
  • The KNC-A Stability Fee parameter will be reduced from 4% to 0%.
  • The ZRX-A Stability Fee parameter will be reduced from 4% to 0%.
  • The USDC-A Stability Fee parameter will be reduced from 4% to 0%.
  • The USDC-B Stability Fee parameter will be reduced from 50% to 46%.
  • The MANA-A Stability Fee parameter will be reduced from 12% to 8%.
  • DyDx will be whitelisted on the ETHUSD Oracle.

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

These changes have been discussed over the last week on the Maker governance forum. Relevant threads can be found here and here. Please review these threads 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.

31 July 2020