The Governance Facilitators and Sidestream, PullUp, and dewiz 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.

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Executive Summary

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

• A new multiswap output conduit for BlockTower Andromeda (RWA015-A) will be deployed, as detailed below.
• The new Smart Burn Engine will be deployed, as detailed below.
• Keeper jobs will be updated, as detailed below.
• Multiple parameter changes per the Stability Scope will be made, as detailed below.
• Delegate compensation for June 2023 will be distributed, as detailed below.
• Funding stream setup, budget distributions, and housekeeping for Ecosystem Actors and Core Units will be carried out, as detailed below.
• A proxy spell for Spark Protocol will be executed, 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.

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

BlockTower Andromeda (RWA015-A) Update

As per the original technical assessment, a multiswap Output Conduit was initially proposed for this vault type. This will allow the operator role to choose which PSM is used to obtain redeemable stablecoins in return for Dai drawn from the vault. Currently, the vault is configured to use the USDP PSM as a compromise while the multiswap tool was developed. The multiswap Output Conduit is now audited and deployed, and the following actions will be carried out, if this executive proposal passes.

• A new Output Conduit at 0x1E86CB085f249772f7e7443631a87c6BDba2aCEb will be authorized, allowing the operator to select which PSM BlockTower Andromeda transactions are routed through. This means that USDC, GUSD, or USDP may be used for drawdowns.
• The relevant Chainlog entry RWA015_A_OUTPUT_CONDUIT will be updated to reflect the change to the Output Conduit.
• The USDP, GUSD, and USDC PSMs will be whitelisted by calling clap.
• The current Output Conduit will be deauthorized.
• The old RWA015_A_OUTPUT_CONDUIT_LEGACY will be removed from the chainlog as it will no longer be used.

Smart Burn Engine Deployment

As per this successful governance poll and the Stability Scope, a new Smart Burn Engine will be deployed along with the following parameters, if this executive proposal passes.

• Deploy the new Smart Burn Engine as MCD_FLAP.
• The Maximum System Surplus (vow.hump) will be reduced by 200 million DAI from 250 million DAI to 50 million DAI.
• The Surplus Auction Lot Size (vow.bump) will be reduced by 25,000 DAI from 30,000 DAI to 5,000 DAI.
• The hop will be set to 1,577 seconds. The hop parameter defines the minimum amount of time that must elapse between kicks, setting the maximum frequency of market actions.
• The want will be set to 0.98. The want parameter defines the relationship between the purchase price of MKR and the price provided by the MKR/USD oracle, i.e., the slippage. A want of 0.98 means that the purchase price of MKR can be up to 2% worse than the oracle price. However, if the price of MKR on Uniswap is better than the Oracle price, the Smart Burn Engine will not be constrained.
• The pip will be set to 0xdbbe5e9b1daa91430cf0772fcebe53f6c6f137df. The pip is the oracle referenced by the Smart Burn Engine.
• The receiver will be set to the Pause Proxy address - 0xBE8E3e3618f7474F8cB1d074A26afFef007E98FB . The receiver is the address that LP tokens will be deposited to after each market action.
• A FlapJob will be added to the chainlog and keeper network sequencer. The address for the FlapJob is 0xc32506E9bB590971671b649d9B8e18CB6260559F. This will allow the Maker Keeper Network to trigger the Smart Burn Engine. This job will only trigger if gas price is below 138 gwei. It will still be able to trigger the Smart Burn Engine manually in this scenario. This restriction is to stop excessive amounts of gas being spent while purchasing relatively small amounts of MKR.

The new Smart Burn Engine will purchase MKR tokens for Dai from the Surplus Buffer. This MKR will then be paired with more Dai from the Surplus Buffer and deposited to UniswapV2's DAI/MKR pool. The LP tokens will be stored in the Pause Proxy.

As only one Flapper can be active in the Maker Protocol, the old MCD_FLAP used for buy-and-burn will be deactivated.

Please review the discussion thread for more information.

Keeper Job Updates

As per this post from the Protocol Scope Facilitators, the following addresses related to the Maker Keeper Network (DssCron) will be added to the Chainlog, if this executive proposal passes.

• Sequencer: 0x238b4E35dAed6100C6162fAE4510261f88996EC9
• AutoLineJob: 0x67AD4000e73579B9725eE3A149F85C4Af0A61361 - with a thi of 1000 bps and a tlo of 5000 bps
• LerpJob: 0x8F8f2FC1F0380B9Ff4fE5c3142d0811aC89E32fB - with a maxDuration of 1 day
• D3MJob: 0x1Bb799509b0B039345f910dfFb71eEfAc7022323 - with a threshold of 500bps and a ttl of 10 minutes.
• ClipperMomJob: 0xc3A76B34CFBdA7A3a5215629a0B937CBDEC7C71a
• OracleJob: 0xe717Ec34b2707fc8c226b34be5eae8482d06ED03

For more information on these keeper jobs and the parameters listed, please refer to the DssCron Github repo.

Scope Defined Parameter changes

As per this post and updated numbers from Block Analitica, the following parameter changes will be made, if this executive proposal passes.

Dai Savings Rate (DSR) Adjustment

• Reduce the DSR by 0.30% from 3.49% to 3.19%.

Liquidation Ratio (mat) Reductions

• Reduce the WSTETH-A Liquidation Ratio by 10% from 160% to 150%.
• Reduce the WSTETH-B Liquidation Ratio by 10% from 185% to 175%.
• Reduce the RETH-A Liquidation Ratio by 20% from 170% to 150%.

Stability Fee Reductions

• Reduce the ETH-A Stability Fee by 0.30% from 3.74% to 3.44%.
• Reduce the ETH-B Stability Fee by 0.30% from 4.24% to 3.94%.
• Reduce the ETH-C Stability Fee by 0.30% from 3.49% to 3.19%.
• Reduce the WSTETH-A Stability Fee by 0.30% from 3.74% to 3.44%.
• Reduce the WSTETH-B Stability Fee by 0.30% from 3.49% to 3.19%.
• Reduce the RETH-A Stability Fee by 0.30% from 3.74% to 3.44%.
• Reduce the WBTC-A Stability Fee by 0.11% from 5.80% to 5.69%.
• Reduce the WBTC-B Stability Fee by 0.11% from 6.30% to 6.19%.
• Reduce the WBTC-C Stability Fee by 0.11% from 5.55% to 5.44%.

Delegate Compensation for June 2023

As per The Atlas and Governance Scope the Governance Facilitators have published the details of delegate compensation for June here. The payments will be distributed if this executive proposal passes.

Delegate	Address	Amount
0xDefensor	0x9542b441d65B6BF4dDdd3d4D2a66D8dCB9EE07a9	29.76
BONAPUBLICA	0x167c1a762B08D7e78dbF8f24e5C3f1Ab415021D3	29.76
QGov	0xB0524D8707F76c681901b782372EbeD2d4bA28a6	29.76
TRUE NAME	0x612f7924c367575a0edf21333d96b15f1b345a5d	29.76
UPMaker	0xbb819df169670dc71a16f58f55956fe642cc6bcd	29.76
vigilant	0x2474937cB55500601BCCE9f4cb0A0A72Dc226F61	29.76
WBC	0xeBcE83e491947aDB1396Ee7E55d3c81414fB0D47	20.16
PBG	0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2	9.92
Bandhar	0xE83B6a503A94a5b764CCF00667689B3a522ABc21	7.68
Libertas	0xE1eBfFa01883EF2b4A9f59b587fFf1a5B44dbb2f	7.04
PALC	0x78Deac4F87BD8007b9cb56B8d53889ed5374e83A	2.24
Harmony	0xF4704Aa4Ad22cAA2A3Dd7A7C529B4C32f7A421F2	1.92
VoteWizard	0x9E72629dF4fcaA2c2F5813FbbDc55064345431b1	1.6
Navigator	0x11406a9CC2e37425F15f920F494A51133ac93072	0.32

This is a total of 229.44 MKR.

First Stage of CRVV1ETHSTETH-A Offboarding

As per this post from Block Analitica, CRVV1ETHSTETH-A meets the criteria for offboarding detailed in the Stability Scope. The following initial actions will be taken if this executive proposal passes.

• Remove CRVV1ETHSTETH-A from the DC-IAM (autoline).
• Set the CRVV1ETHSTETH-A Debt Ceiling to 0 DAI.

Following discussion among the spell team the Global Debt Ceiling is not being reduced at this time. Due to each vault type having an individual Debt Ceiling this does not have any substantive effect on the operation of the Maker Protocol. For more information on the Global Debt Ceiling see here.

Ecosystem Actor Funding

Ecosystem Actor Dai Budget Streams

Per the Support Scope and the Accessibility Scope the following Dai Budget Streams will be set up, if this executive proposal passes.

Destination	Start Date	End Date	Address	Amount (DAI)
Chronicle Labs Auditor Wallet	2023-07-01	2024-06-30	0x68D0ca2d5Ac777F6A9b0d1be44332BB3d5981C2f	3,721,800
Jetstream Auditor Wallet	2023-07-01	2024-12-31	0xF478A08C41ad06E8D957d5e6B6Bcde7452cEE962	2,964,006

Note that the stream to Jetstream is part of the Launch Project and is further described in this forum post.

Ecosystem Actor MKR Budget Streams

Per the Support Scope and the Accessibility Scope the following MKR Budget Streams will be set up, if this executive proposal passes.

Destination	Start Date	End Date	Cliff Date	Address	Amount (MKR)
Chronicle Labs Auditor Wallet	2023-07-01	2024-06-30	2023-07-01	0x68D0ca2d5Ac777F6A9b0d1be44332BB3d5981C2f	2,216.4
Jetstream Auditor Wallet	2023-06-26	2024-12-31	2023-06-26	0xF478A08C41ad06E8D957d5e6B6Bcde7452cEE962	1,619.93

Note: to accommodate the stream for Chronicle Labs, this executive proposal will raise the cap on the maximum annual MKR that can be vested through DssVest.

Ecosystem Actor Dai Transfer

As part of the Launch Project, the following Dai transfer will be made if this executive proposal passes.

• Transfer 494,001 DAI to the Jetstream Auditor Wallet at 0xF478A08C41ad06E8D957d5e6B6Bcde7452cEE962.

Note that the transfer to Jetstream is part of the Launch Project and is further described in this forum post.

Core Unit MKR Vesting Transfers

DECO-001

As per their successful MKR budget proposal, 125 MKR will be transferred to the DECO Core Unit Auditor Wallet at 0xF482D1031E5b172D42B2DAA1b6e5Cbf6519596f7 if this executive proposal passes.

DUX-001

As part of their voluntary offboarding, 56.48 MKR will be transferred to the DUX Core Unit Auditor Wallet at 0x5A994D8428CCEbCC153863CCdA9D2Be6352f89ad if this executive proposal passes.

This is the remainder of the MKR due to the DUX Core Unit under that agreement. The original MKR budget may be seen here.

Cancel Core Unit Dai stream

As part of their voluntary offboarding, Dai stream ID 14 to DUX-001 will be canceled if this executive proposal passes.

Spark Proxy Spell Execution

The Spark Protocol Proxy Spell at 0x843A0539Ca7466Abcb769f1c1d30C8423e13A297 will be executed if this executive proposal passes.

This spell will freeze the sDAI market on Spark Protocol in anticipation of further upgrades.

Further information may be found on the forum here.

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.

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Resources

Additional information about the Governance process can be found in the Maker Operational Manual.

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