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:

• A total of 435 MKR will be streamed to the Strategic Finance Core Unit (SF-001), as detailed below.
• Parameter changes from the latest proposal of the MakerDAO Open Market Committee, as detailed below.

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

• Aave v2 DAI Direct Deposit Module (D3M) will be onboarded and activated, as detailed 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

Aave v2 DAI Direct Deposit Module (D3M) Onboarding

As per this poll, the Aave v2 D3M will be onboarded with the following parameters, if this executive proposal passes.

D3M Parameters

• Target Borrow Rate (bar): 2%.
• Maximum Debt Ceiling (line): 5 million DAI.
• Target Available Debt (gap): 5 million DAI.
• Ceiling Increase Cooldown (ttl): 12 hours.
• tau: 7 days.
  • The tau parameter defines the time period that must elapse before debt can be written off after a D3M has been caged.

Note that Governance has approved a line of 20 million DAI but the intial deployment sets the line to 5 million DAI following the advice of the Protocol Engineering Core Unit. The line will be increased to the approved value once the D3M is operational and deemed secure.

For more information on the DAI Direct Deposit Module, see the entry in the Maker Operational Manual here.

Threads and Assessments

Please review the following resources containing information about the Aave V2 D3M to inform your position before voting.

• Proposal Thread
• Initial Risk Core Unit Evaluation
• Initial Protocol Engineering Core Unit Evaluation
• MIP 50: DAI Direct Deposit Module

Strategic Finance Core Unit (SF-001) Contributor MKR Vesting

As per their successful MKR vesting proposal, the following MKR vesting streams will be added for the Strategic Finance Core Unit (SF-001), if this executive proposal passes.

Contributor Stream 1

• Amount to be Streamed: 240 MKR
• Start Date: 2022-03-01
• End Date: 2025-03-01
• Cliff Date: 2023-03-01
• Destination Address: 0x31C01e90Edcf8602C1A18B2aE4e5A72D8DCE76bD

Contributor Stream 2

• Amount to be Streamed: 195 MKR
• Start Date: 2022-03-01
• End Date: 2025-03-01
• Cliff Date: 2023-03-01
• Destination Address: 0x12b19C5857CF92AaE5e5e5ADc6350e25e4C902e9

Note these stream and cliff dates have been backdated to the date that the contributors started work with the Strategic Finance Core Unit.

MOMC Parameter Changes

As per this successful governance poll, the following changes recommended by the MakerDAO Open Market Committee will be made, if this executive proposal passes:

Vault Parameter Changes

Stability Fee changes

• Increase the WSTETH-B Stability Fee by 0.25% from 0.25% to 0.5%.
• Reduce the RETH-A Stability Fee by 1% from 1.5% to 0.5%.
• Reduce the WBTC-A Stability Fee by 0.25% from 2% to 1.75%.
• Reduce the WBTC-B Stability Fee by 0.25% from 3.5% to 3.25%.

Maximum Debt Ceiling (line) increases

• Increase the CRVV1ETHSTETH-A Maximum Debt Ceiling (line) by 80 million DAI from 20 million DAI to 100 million DAI.
• Increase the RETH-A Maximum Debt Ceiling (line) by 5 million DAI from 5 million DAI to 10 million DAI.
• Increase the MATIC-A Maximum Debt Ceiling (line) by 5 million DAI from 10 million DAI to 15 million DAI.
• Increase the Compound v2 D3M Maximum Debt Ceiling (line) by 10 million DAI from 20 million DAI to 30 million DAI.

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

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 Maker Operational Manual.

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 Governance Calendar.