Executive Vote: Onboard YFI and BAL, Debt Ceiling and Stability Fee Adjustments

6 November 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.

Onboard YFI as a new Collateral Type

A new collateral type, YFI (yearn.finance), will be added to the Maker Protocol if this proposal passes. YFI will be added with the following parameters in the YFI-A vault type. These parameters match those in the previous governance poll

  • Stability Fee: 4%
  • Liquidation Ratio: 175%
  • Debt Ceiling: 7 million
  • Auction Lot Size: 50,000 DAI
  • Minimum Bid Increment: 3%
  • Bid Duration: 6 hours
  • Max Auction Duration: 6 hours
  • Liquidation Penalty: 13%
  • Dust: 100 DAI

Please review the following forum threads containing information about YFI (yearn.finance) to inform your position before voting.

Onboard BAL as a new Collateral Type

A new collateral type, BAL (Balancer), will be added to the Maker Protocol if this proposal passes. BAL will be added with the following parameters in the BAL-A vault type. These parameters match those in the previous governance poll

  • Stability Fee: 5%
  • Liquidation Ratio: 175%
  • Debt Ceiling: 4 million
  • Auction Lot Size: 50,000 DAI
  • Minimum Bid Increment: 3%
  • Bid Duration: 6 hours
  • Max Auction Duration: 6 hours
  • Liquidation Penalty: 13%
  • Dust: 100 DAI

Please review the following forum threads containing information about BAL (Balancer) to inform your position before voting.

Reduce the ETH-A Debt Ceiling

As per this governance poll, the ETH-A Debt Ceiling will be reduced from 540 million DAI to 490 million DAI if this proposal passes.

Please review the discussion thread to inform your position on this issue before voting.

Reduce the ETH-B Debt Ceiling

As per this governance poll, the ETH-B Debt Ceiling will be reduced from 20 million DAI to 10 million DAI if this proposal passes.

Please review the discussion thread to inform your position on this issue before voting.

Reduce the MANA-A Debt Ceiling

As per this governance poll, the MANA-A Debt Ceiling will be reduced from 1,000,000 DAI to 250,000 DAI if this proposal passes.

Please review the discussion thread to inform your position on this issue before voting.

Reduce the USDT-A Debt Ceiling

As per this governance poll, the USDT-A Debt Ceiling will be reduced from 10 million DAI to 2.5 million DAI if this proposal passes.

Please review the discussion thread to inform your position on this issue before voting.

Increase the WBTC-A Debt Ceiling

As per this governance poll, the WBTC-A Debt Ceiling will be increased from 120 million DAI to 160 million DAI if this proposal passes.

Please review the discussion thread to inform your position on this issue before voting.

Increase the LINK-A Debt Ceiling

As per this governance poll, the LINK-A Debt Ceiling will be increased from 5 million DAI to 10 million DAI if this proposal passes.

Please review the discussion thread to inform your position on this issue before voting.

Reduce the ETH-B Stability Fee

As per this governance poll, the ETH-B Stability Fee will be reduced from 6% to 4% if this proposal passes.

Please review the rates proposal thread to inform your position on this issue before voting.

Summary

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

Collateral Onboarding

  • The YFI-A vault type will be added using YFI as collateral with the parameters listed above.
  • The BAL-A vault type will be added using BAL as collateral with the parameters listed above.

Debt Ceiling Changes

  • The WBTC-A Debt Ceiling will increase from 120 million DAI to 160 million DAI
  • The LINK-A Debt Ceiling will increase from 5 million DAI to 10 million DAI
  • The ETH-B Debt Ceiling will decrease from 20 million DAI to 10 million DAI
  • The USDT-A Debt Ceiling will decrease from 10 million DAI to 2.5 million DAI
  • The ETH-A Debt Ceiling will decrease from 540 million DAI to 490 million DAI
  • The MANA-A Debt Ceiling will decrease from 1 million DAI to 250 thousand DAI
  • The Global line parameter will decrease from 1,476,000,000 DAI to 1,463,750,000 DAI due to the above changes.

Stability Fee Changes

  • The ETH-B Stability Fee will decrease from 6% to 4%

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

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 16:00 UTC.

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

6 November 2020