Liquidations 2.0 Contracts, Increase Emergency Shutdown Threshold
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 this executive proposal passes, the following additions will be made to the Maker Protocol:
- The Liquidations 2.0 Contracts will be authorized.
- LINK-A will be moved to the Liquidations 2.0 Framework.
If this executive proposal passes, the following changes will occur within the Maker Protocol:
- The Emergency Shutdown Threshold will increase from 50,000 MKR to 75,000 MKR.
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.
Authorize Liquidations 2.0 Contracts
Given the passing of this executive the following contracts will be authorized to implement Liquidations 2.0 if this executive proposal passes:
- Add contract "MCD_DOG" - The liquidation module contract, a full upgrade to the previous
catcontract for liquidations.
- Replace contract "MCD_END" - Contract for executing a shutdown of the protocol.
- Replace contract "MCD_ESM" - Emergency Shutdown Module contract that enables burning MKR to shut the protocol down.
- Replace contract "ILK_REGISTRY" - Contract defining the different vault types within the protocol.
- Add contract "CLIPPER_MOM" - Contract that enables a "circuit breaker" for Liquidations 2.0 if the price of a collateral drops too severely.
- Add contract "MCD_CLIP_LINK_A" - Contract containing the LINK-A auction module (with the parameters listed below).
- Add contract "MCD_CLIP_CALC_LINK_A" - Contract that contains the Auction Price Function for LINK-A.
- Remove contract "MCD_FLIP_LINK_A" - The previous contract setting the LINK-A liquidation parameters.
Contract addresses and updates may be found in the Collateral Onboarding Updates Rocket.Chat Channel.
Add LINK-A to Liquidations 2.0 Framework
Given the successful outcome of this poll, LINK-A will be added to the Liquidations 2.0 Framework with the following parameters if this executive proposal passes:
- Auction Price Function (
calc): Stairstep Exponential
- Auction Price Multiplier (
- Local Liquidation Limit (
ilk.hole): 6 million DAI
- Maximum Auction Drawdown (
- Maximum Auction Duration (
tail): 8,400 seconds
- Breaker Price Tolerance (
Because this is the first vault type using Liquidations 2.0, the Global Liquidation Limit will also be set:
- Global Liquidation Limit (
Hole): 100 million DAI
Further details and rationale can be found in the following Risk Evaluation.
Increase Emergency Shutdown Threshold
Following this Risk Evaluation and the subsequent decision by the Governance Facilitator(s), the following change will be made to the amount of MKR tokens needed to activate an Emergency Shutdown (call
end.cage) if this executive proposal passes:
- Increase threshold from 50,0000 MKR to 75,000 MKR.
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.
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.