The Governance Facilitators, Sidestream, Dewiz, and Phoenix Labs 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 will occur within the Maker Protocol:

• The Dai Savings Rate will be reduced per the latest update to the EDSR, as detailed below.
• Multiple Stability Fee updates will be made, as detailed below.
• The Smart Burn Engine parameters will be updated, as detailed below.
• Vault parameter updates per the Stability Scope will be made, as detailed below.
• CRVV1ETHSTETH-A offboarding will be completed, as detailed below.
• A total of 272.75 MKR will be paid to sixteen Aligned Delegates, as detailed below.
• Housekeeping parameter updates to the old Compound and Aave Direct Deposit Modules will take place, as detailed below.
• Parameter updates to the New Silver (RWA002-A) vault will be made, as detailed below.
• A DAO Resolution for BlockTower Andromeda (RWA015-A) will be approved, as detailed below.
• Admin control over the remaining Spark Protocol contracts will be transferred to the Spark Proxy, as detailed below.
• A proxy spell for Spark Protocol will be triggered, 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.

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

Dai Savings Rate (DSR) Update

As per this successful governance poll, the DSR will be reduced as per the latest updates to the Enhanced Dai Savings Rate (EDSR) in the Stability Scope as follows, if this executive proposal passes.

• Reduce the DSR by 3% from 8% to 5%.

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

EDSR-Related Stability Fee Updates

As per this successful governance poll, the following Stability Fee Updates will be made, as per the instructions for the Enhanced Dai Savings Rate (EDSR) in the Stability Scope, if this executive proposal passes.

• Increase ETH-A Stability Fee by 0.14% from 3.44% to 3.58%.
• Increase ETH-B Stability Fee by 0.14% from 3.94%% to 4.08%.
• Increase ETH-C Stability Fee by 0.14% from 3.19% to 3.33%.
• Increase WSTETH-A Stability Fee by 1.81% from 3.44% to 5.25%.
• Increase WSTETH-B Stability Fee by 1.81% from 3.19% to 5.00%.
• Increase RETH-A Stability Fee by 1.81% from 3.44% to 5.25%.
• Increase WBTC-A Stability Fee by 0.11% from 5.69% to 5.80%.
• Increase WBTC-B Stability Fee by 0.11% from 6.19% to 6.30%.
• Increase WBTC-C Stability Fee by 0.11% from 5.44% to 5.55%.

Note that the ETH-A, ETH-B, and ETH-C Stability Fees are calculated based on the underlying DSR value rather than the EDSR value.

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

Smart Burn Engine Parameter Updates

Per this successful governance poll, the following parameter updates to the Smart Burn Engine will occur if this executive proposal passes.

• Increase Smart Burn Engine Cooldown (hop) by 4,731 seconds from 1,577 seconds to 6,308 seconds.
• Increase Smart Burn Engine Lot Size (bump) by 15,000 DAI from 5,000 DAI to 20,000 DAI.

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

Non-DSR Related Parameter changes

As per this successful governance poll and the Stability Scope the following parameter changes will be made, if this executive proposal passes.

• Increase WSTETH-A Maximum Debt Ceiling (line) by 250 million DAI from 500 million DAI to 750 million DAI.
• Increase WSTETH-B Maximum Debt Ceiling (line) by 500 million DAi from 500 million DAI to 1 billion DAI.
• Increase WSTETH-B Target Available Debt (gap) by 15 million DAI from 30 million DAI to 45 million DAI.
• Reduce WSTETH-B Ceiling Increase Cooldown (ttl) by 14,400 seconds from 57,600 seconds to 43,200 seconds (12 hours).
• Increase RETH-A Maximum Debt Ceiling (line) by 25 million DAI from 50 million DAI to 75 million DAI.

Please review the forum threads (1, 2) to inform your position before voting.

CRVV1ETHSTETH-A Second Stage Offboarding

As per the instructions in the Stability Scope, the offboarding of CRVV1ETHSTETH-A will be completed by enacting the following parameter changes, if this executive proposal passes.

• Reduce Liquidation Penalty (chop) by 13% from 13% to 0%.
• Reduce Flat Kick Incentive (tip) by 250 DAI from 250 DAI to 0 DAI.
• Reduce Proportional Kick Incentive (chip) by 0.1% from 0.1% to 0%.
• Increase Liquidation Ratio (mat) by 9,845% from 155% to 10,000%.
• For completeness, the Global Debt Ceiling (Line) will be reduced by 100 million DAI as part of the offboarding process for this collateral.

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

Aligned Delegate Compensation for July 2023

As per The Atlas and Governance Scope the Governance Facilitators have published the details of delegate compensation for July 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	14.82
PALC	0x78Deac4F87BD8007b9cb56B8d53889ed5374e83A	13.89
Navigator	0x11406a9CC2e37425F15f920F494A51133ac93072	11.24
PBG	0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2	9.92
VoteWizard	0x9E72629dF4fcaA2c2F5813FbbDc55064345431b1	9.92
Libertas	0xE1eBfFa01883EF2b4A9f59b587fFf1a5B44dbb2f	9.92
Harmony	0xF4704Aa4Ad22cAA2A3Dd7A7C529B4C32f7A421F2	8.93
JAG	0x58d1ec57e4294e4fe650d1cb12b96ae34349556f	7.61
Cloaky	0x869b6d5d8FA7f4FFdaCA4D23FFE0735c5eD1F818	4.30
Skynet	0xd4d1A446cD5976a11bd32D3e815A9F85FED2F9F3	3.64

This comes to a total of 272.75 MKR.

Direct Deposit Module (D3M) Parameter Housekeeping

As per this forum post, the following housekeeping changes to the now defunct D3Ms will be made if this executive proposal passes.

Aave D3M

• Remove DIRECT-AAVEV2-DAI from the DC-IAM (autoline).
• Set the DIRECT-AAVEV2-DAI Debt Ceiling to 0 DAI.

Compound D3M

• Remove DIRECT-COMPV2-DAI from the DC-IAM (autoline).
• Set the DIRECT-COMPV2-DAI Debt Ceiling to 0 DAI.

For completeness, the Global Debt Ceiling (Line) will be reduced by as part of this process to account for the removal of the Debt Ceiling of these collaterals.

New Silver (RWA002-A) Parameter Changes

As per this successful governance poll and the execution of the updated doc parameter in the preceding spell, the following parameter changes to the New Silver (RWA002-A) vault will be made, if this executive proposal passes.

• Increase RWA002-A Debt Ceiling by 30 million DAI from 20 million DAI to 50 million DAI.
• Increase RWA002-A Stability Fee by 3.5% from 3.5% to 7%.
• Reduce Liquidation Ratio by 5% from 105% to 100% - the rationale for this change can be seen here.
• Bump the Oracle Price to 92,899,356 DAI (rounded value, see technical note below).

Technical Note: the increase in the Oracle Price is required to account for borrowing and accumulated Stability Fees throughout the loan term. Per the Legal Agreement, the loan term runs until 2032-10-11. At the smart contract level, the Oracle Price will be internally set to 92899355926924134500000000.

Please see the proposal thread before voting.

DAO Resolution for BlockTower Andromeda

As per this forum post and approval by the Responsible Facilitator, the following DAO Resolution concerning BlockTower Andromeda (RWA015-A) will be approved, if this executive proposal passes.

MAKERDAO RESOLUTION

Date: DATED AS OF RELATED EXECUTIVE VOTE ON MAKERDAO

No: 5

Purpose: SETUP ADDITIONAL TRANSACTIONAL THIRD-PARTY RELATIONSHIPS

Reference is made to the Articles of Association (the “Articles”) of TACO Foundation, a Cayman Islands foundation company (“TACO”), dated November 16, 2022, pursuant to which TACO’s operations are governed. Capitalized terms used herein and not otherwise defined shall have the meaning given to them in the Articles.

This resolution sets out the instructions and ratifications duly passed as an executed vote on https://vote.makerdao.com/executive (“Maker Governance Voting Portal”) in accordance with the governance protocols of MakerDAO on the date specified above. In accordance with the governance protocols of MakerDAO on the date specified above and pursuant to clause 4.16 of the Articles, according to which the directors of TACO must implement all DAO Resolutions (subject to applicable law); this DAO Resolution approves and ratifies the following structures and actions to execute on transactions as described by Project Andromeda:

RATIFICATION

Establish, maintain, or enable reporting on the following additional facilities:

1. An agreement with Wintermute Trading Ltd. as Exchange Agent to establish an OTC Account (“Wintermute OTC Account”), whereby:
a. Incoming funds can be deposited into a segregated wallet managed by Exchange Agent, for the express purpose of exchanging Stablecoins into USD. USD exchanged from Stablecoins shall be deposited by Wintermute into one of TACO’s Settlement Accounts.
b. In the event of a disbursement, USD incoming from TACO’s Settlement Account can be deposited into the Wintermute OTC Account for the express purpose of exchanging USD into Stablecoins. Stablecoins exchanged from USD shall be deposited into either RWA015_A_INPUT_CONDUIT_JAR or RWA015_A_INPUT_CONDUIT_URN.

2. A Settlement Account with StoneX Group Inc. (“StoneX Settlement Account”), whereby:
a. Incoming funds from an Exchange Agent may be directed to the purchase of identified assets.
b. Assets purchased shall be custodied with StoneX Group Inc. acting as Broker and Pershing LLC. acting as Custodian.
c. Distribution and proceeds from the sale of any assets shall be settled in the StoneX Settlement Account.

3. A Settlement Account with Computershare Ltd. (“Computershare Settlement Account”), whereby:
a. Incoming funds from an Exchange Agent may be directed to the purchase of identified assets.
b. Assets purchased may be custodied with Computershare Ltd. acting as Custodian.
c. Distribution and proceeds from the sale of any assets shall be settled in the Computershare Settlement Account

The IPFS hash of this DAO Resolution is QmUNrCwKK2iK2ki5Spn97jrTCDKqFjDZWKk3wxQ2psgMP5 and a pinned version can be viewed here.

Transfer Spark Protocol Admin Controls

As per this governance poll, use of a Spark Proxy has been approved by Maker Governance. Admin control over the remaining contracts (listed below) will be transferred to the Spark Proxy if this executive proposal passes.

• treasuryController
• treasury
• daiTreasury
• incentives
• wethGateway
• aclManager
• poolAddressesProvider
• poolAddressesProvierRegistry
• emissionManager

Maker Governance will retain ultimate control over Spark Protocol as the Spark Proxy requires approval from a Maker Core executive spell to interact with any of these contracts.

Please review this forum post for more information about Executive Proxies.

Execute Spark Proxy Spell

The Spark Proxy spell at address 0x60cC45DaB5F0B17789C77d5FE990f1aD80e9DD65 will be executed, if this executive proposal passes.

Spell contents include:

• Upgrade the Pool Implementation to Aave 3.0.2
• Set DAI interest rate strategy to track the DSR rather than ETH-C Stability Fee - this is based on the latest EDSR updates and reflects that the Spark borrow rate should track the EDSR.
• Unfreeze the sDAI market - now that the DAI borrow rate at Spark tracks the DSR, the sDAI market can be unfrozen as there is no longer an arbitrage opportunity.

Further information on these changes can be found from the Phoenix Labs team in this forum post.

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.