Executive Vote: Liquidations 2.0 Activations, Transfer May Core Unit Budgets

May 7, 2021

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

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.

Executive Summary

If this executive proposal passes, the following changes will occur within the Maker Protocol:

Liquidations 2.0

  • The UNI-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The ZRX-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The AAVE-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The BAT-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The RENBTC-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The LRC-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The MANA-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The COMP-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The KNC-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.
  • The BAL-A vault type will be added to the Liquidations 2.0 framework with the parameters listed below.

Core Unit Budget Distributions - May

  • 40,000 DAI will be distributed to Real World Finance (RWA-001).
  • 100,500 DAI will be distributed to Risk (RISK-001).
  • 80,000 DAI will be distributed to GovAlpha (GOV-001).
  • 126,117 DAI will be distributed to Growth (GRO-001).
  • 44,375 DAI will be distributed to Content Production (MKT-001).

Other

  • The UNIV2DAIUSDC-A Liquidation Ratio will be decreased from 110% to 105%.

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

Unless otherwise noted, the changes and additions listed above are subject to the GSM Pause Delay. This means that if this executive proposal passes, the changes and additions listed above will only become active in the Maker Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 48 hours.

This executive proposal includes an office-hours modifier that means that it can only be executed 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 on new collateral types.

If this executive proposal does not pass within 30 days, then it will expire and can no longer have any effect on the Maker Protocol.

Proposal Details

Liquidations 2.0

Given the successful outcome of this poll, the following vault types will be added to the Liquidations 2.0 framework with the following parameters if this executive proposal passes.

Included Vault Types

  • UNI-A
  • ZRX-A
  • AAVE-A
  • BAT-A
  • RENBTC-A
  • LRC-A
  • MANA-A
  • COMP-A
  • KNC-A
  • BAL-A

Common Parameters
These parameters will be identical for each of the vault types listed above.

Auction Price

Limits

Incentives

Local Liquidation Limits (ilk.hole)
This parameter is different for each vault type.

  • UNI-A Local Liquidation Limit (ilk.hole): 5 million DAI
  • ZRX-A Local Liquidation Limit (ilk.hole): 1 million DAI
  • AAVE-A Local Liquidation Limit (ilk.hole): 5 million DAI
  • BAT-A Local Liquidation Limit (ilk.hole): 1.5 million DAI
  • RENBTC-A Local Liquidation Limit (ilk.hole): 3 million DAI
  • LRC-A Local Liquidation Limit (ilk.hole): 0.5 million DAI
  • MANA-A Local Liquidation Limit (ilk.hole): 1 million DAI
  • COMP-A Local Liquidation Limit (ilk.hole): 2 million DAI
  • KNC-A Local Liquidation Limit (ilk.hole): 0.5 million DAI
  • BAL-A Local Liquidation Limit (ilk.hole): 3 million DAI

Further details and rationale can be found in the following proposal from the Risk Team.

May Core Unit Distributions

Due to the positive outcomes of the March and the April monthly governance cycle executive votes, the following budget allocations will be made to fund operations in the month of May if this executive proposal passes.

Decrease the UNIV2DAIUSDC-A Liquidation Ratio

Due to the positive outcome of this poll, the UNIV2DAIUSDC-A Liquidation Ratio will be decreased from 110% to 105% if this executive proposal passes.

Please review this signal thread to see the rationale and discussion associated with this proposed change.

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.

Resources

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.

May 7, 2021

Read next