The Governance Facilitator(s) and the Protocol Engineering Core Unit 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.

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Executive Summary

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

• The WBTC-A Stability Fee will be increased from 2.5% to 4.0%.
• Local Liquidation Limits (ilk.hole) for ETH-A, ETH-B, ETH-C, WBTC-A, WSTETH-A will be increased.
• P1-DROP (Peoples Company Series 1) covenant will be changed.
• BAL-A, COMP-A, AAVE-A will be offboarded.
• Changes to LRC-A, BAT-A, ZRX-A, UNIV2LINKETH-A for collateral offboarding.

If this executive proposal passes, the following additions will be made to the Maker Protocol:

• WBTC-B will be onboarded as a new vault type.

More details on these changes and additions can be found in the Proposal Details section below.

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.

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Proposal Details

WBTC-A Stability Fee will be increased from 2.5% to 4.0%

As per the outcome of this poll, the following Stability Fee will be increased if this executive proposal passes:

VAULT TYPE	CURRENT SF	PROPOSED SF	SF DIFFERENCE
WBTC-A	2.5%	4%	+1.5%

For more information, please see this thread.

Increases to Local Liquidation Limits (ilk.hole) for ETH-A, ETH-B, ETH-C, WBTC-A, WSTETH-A

As per the outcome of this poll, the following Local Liquidation Limits will be increased if this executive proposal passes:

VAULT TYPE	CURRENT LOCAL LIQUIDATION LIMIT	PROPOSED LOCAL LIQUIDATION LIMIT	LOCAL LIQUIDATION LIMIT DIFFERENCE
ETH-A	40 million DAI	65 million DAI	+25 million DAI
ETH-B	25 million DAI	30 million DAI	+5 million DAI
ETH-C	30 million DAI	35 million DAI	+5 million DAI
WBTC-A	25 million DAI	40 million DAI	+15 million DAI
WSTETH-A	3 million DAI	7 million DAI	+4 million DAI

For more information, please see this post.

A change of Covenants for P1-DROP (Peoples Company Series 1)

As per this poll, the following covenant changes to P1-DROP (Peoples Company Series 1) will occur if this executive proposal passes:

• Increase maximum acquisition price from $1.5 million to $2.85 million.
• Include Arkansas as a possible state.

For more information, please see this signal request thread.

Offboarding Vaults

The following vaults will be offboarded by implementing the following changes if this executive proposal passes. Further context can be found here.

BAL-A

As per this poll, the following parameters changes will occur to offboard BAL-A if this executive proposal passes:

• Lower the Liquidation Penalty (chop) to 0%.
• Lower the Debt Ceiling (line) to 0 DAI.
• Increase the Liquidation Ratio from 165% to 2300% over 30 days using dss-lerp.

COMP-A

As per this poll, the following parameters changes will occur to offboard COMP-A if this executive proposal passes:

• Lower the Liquidation Penalty (chop) to 0%.
• Lower the Debt Ceiling (line) to 0 DAI.
• Increase the Liquidation Ratio from 165% to 2000% over 30 days using dss-lerp.

AAVE-A

As per this poll, the following parameters changes will occur to offboard AAVE-A if this executive proposal passes:

• Lower the Liquidation Penalty (chop) to 0%.
• Lower the Debt Ceiling (line) to 0 DAI.
• Increase the Liquidation Ratio from 165% to 2100% over 30 days using dss-lerp.

Updating dss-lerp Liquidation Ratios

LRC-A

LRC-A has been offboarded via a previous executive proposal. The following parameter changes will increase the Liquidation Ratio for LRC-A if this executive proposal passes. For more information, see this.

• The previous dss-lerp for increasing the Liquidation Ratio of this collateral will be canceled.
• A new dss-lerp contract will be deployed to increase the Liquidation Ratio to 24300% over 30 days.

BAT-A

BAT-A has been offboarded via a previous executive proposal. The following parameter changes will increase the Liquidation Ratio for BAT-A if this executive proposal passes. For more information, see this.

• The previous dss-lerp for increasing the Liquidation Ratio of this collateral will be canceled.
• A new dss-lerp contract will be deployed to increase the Liquidation Ratio to 11200% over 30 days.

ZRX-A

ZRX-A has been offboarded via a previous executive proposal. The following parameter changes will increase the Liquidation Ratio for ZRX-A if this executive proposal passes. For more information, see this.

• The previous dss-lerp for increasing the Liquidation Ratio of this collateral will be canceled.
• A new dss-lerp contract will be deployed to increase the Liquidation Ratio to 5500% over 30 days.

UNIV2LINKETH-A

UNIV2LINKETH-A has been offboarded via a previous executive proposal. The following parameter changes will increase the Liquidation Ratio for UNIV2LINKETH-A if this executive proposal passes. For more information, see this.

• The previous dss-lerp for increasing the Liquidation Ratio of this collateral will be canceled.
• A new dss-lerp contract will be deployed to increase the Liquidation Ratio to 1600% over 30 days.

Adding New WBTC-B Vault Type

As per the outcome of this poll, WBTC (Wrapped Bitcoin) will be onboarded as the vault type WBTC-B with the following parameters if this executive proposal passes:

Initial Collateral Parameters

• Underlying Collateral: WBTC (Wrapped Bitcoin)
• Stability Fee: 7%
• Liquidation Ratio: 130%
• Debt Ceiling (line): 500 million DAI
• Target Available Debt (gap): 30 million DAI
• Ceiling Increase Cooldown (ttl): 8 hours
• Debt Floor (dust): 30,000 DAI

Liquidation Parameters

• Auction Price Function (calc): Stairstep Exponential
• Price Change Multiplier (cut): 0.99
• Price Change Interval (step): 60 seconds
• Auction Price Multiplier (buf): 1.2
• Liquidation Penalty (chop): 13%

Limits

• Local Liquidation Limit (ilk.hole): 25 million DAI
• Maximum Auction Drawdown (cusp): 0.4
• Maximum Auction Duration (tail): 90 minutes
• Breaker Price Tolerance (tolerance): 0.5

Incentives

• Proportional Kick Incentive (chip): 0.1%
• Flat Kick Incentive (tip): 300 DAI

For more information, please see the Risk Core Unit evaluation and this signal request.

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.

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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.