Executive Vote: Raise the PAX Debt Ceiling and Decrease the Base Rate

2 October 2020

The Governance Facilitator 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.

PAX Debt Ceiling Increase

As per this community signal request, the PAX debt ceiling will be increased from 60 million to 100 million if this proposal passes.

Base Rate Decrease

As per the weekly Base Rate poll the Base Rate meta-parameter will be decreased from 0.25% to 0% 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 TUSD Token Contract Upgrade

As per this forum thread and the response from the Smart Contracts Domain Team, the new TUSD Token contract implementation will be whitelisted for use in the Maker Protocol if this proposal passes.

Summary

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

  • The PAXUSD-A Debt Ceiling will increase from 60 million to 100 million.
  • Due to the above debt ceiling change, the global Line parameter will increase from 1,416 million to 1,456 million.
  • The Base Rate Meta-parameter will decrease from 0.25% to 0%
  • The USDC-A Stability Fee will decrease from 4.25% to 4%
  • The ETH-A Stability Fee will decrease from 2.25% to 2%
  • The WBTC-A Stability Fee will decrease from 4.25% to 4%
  • The TUSD-A Stability Fee will decrease from 4.25% to 4%
  • The PAXUSD-A Stability Fee will decrease from 4.25% to 4%
  • The BAT-A Stability Fee will decrease from 4.25% to 4%
  • The LRC-A Stability Fee will decrease from 3.25% to 3%
  • The MANA-A Stability Fee will decrease from 12.25% to 12%
  • The KNC-A Stability Fee will decrease from 4.25% to 4%
  • The ZRX-A Stability Fee will decrease from 4.25% to 4%
  • The LINK-A Stability Fee will decrease from 2.25% to 2%
  • The USDC-B Stability Fee will decrease from 50.25% to 50%
  • The USDT-A Stability Fee will decrease from 8.25% to 8%
  • The COMP-A Stability Fee will decrease from 3.25% to 3%
  • The new TUSD Token Contract implementation will be whitelisted for use in the Maker Protocol.

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 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 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.

2 October 2020