Maker Governance - Proposal ETH and wstETH Oracle Migration, Rate Changes, Smart Burn Engine Parameter Update, Bug Bounty Payout, Aligned Delegate Compensation, Atlas Core Development Payments, Integration Boost Top-up, Spark Proxy Spell

ETH and wstETH Oracle Migration, Rate Changes, Smart Burn Engine Parameter Update, Bug Bounty Payout, Aligned Delegate Compensation, Atlas Core Development Payments, Integration Boost Top-up, Spark Proxy Spell - March 20, 2025

Spell Address

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MKR Support

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Supporters

The Governance Facilitators, Dewiz, and Sidestream have placed an executive proposal into the voting system. MKR/SKY Holders should vote for this proposal if they support the following alterations to the Sky Protocol.

If you are new to voting in the Sky Protocol, please see the voting guide to learn how voting works.

Executive Summary

If this executive proposal passes, the following actions will occur within the Sky Protocol:

Sky's ETH and wstETH oracles will be migrated from the current Median-based design to Chronicle's new Scribe-based design.
Multiple rate changes will be made as described below.
The Smart Burn Engine hop parameter will be updated as described below.
A total of 55,000 USDS for a Bug Bounty payout will be distributed as described below.
A total of 23,613 USDS will be distributed to seven Aligned Delegates as compensation for February 2025.
Atlas Core Development payments totalling 86,639 USDS and 618,000 SKY will be distributed.
3 million USDS for Integration Boost funding will be transferred to 0xD6891d1DFFDA6B0B1aF3524018a1eE2E608785F7.
A Spark proxy spell at 0x1e865856d8F97FB34FBb0EDbF63f53E29a676aB6 will be triggered.

Voting for this executive proposal will place your MKR/SKY in support of the actions outlined above.

Unless otherwise noted, the actions 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 Sky Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 18 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 Sky Protocol.

Proposal Details

ETH and wstETH Oracle Migration

Authorization: Ecosystem Approval, Governance Poll 1207
Proposal: Forum posts 1, 2

If this executive proposal passes, then the following oracle changes will be made as part of the migration process defined in A.3.7.1.1.4, Oracles.

ETH Oracle Migration

The source of ETH/USD pricing for the ETH Oracle Safety Module (OSM) will be updated to 0x46ef0071b1E2fF6B42d36e5A177EA43Ae5917f4E.

The relevant call for this action is:

OsmAbstract(PIP_ETH).change(0x46ef0071b1E2fF6B42d36e5A177EA43Ae5917f4E);

wstETH Oracle Migration

The source of wstETH/USD pricing for the wstETH Oracle Safety Module (OSM) will be updated to 0xA770582353b573CbfdCC948751750EeB3Ccf23CF.

The relevant call for this action is:

OsmAbstract(PIP_WSTETH).change(0xA770582353b573CbfdCC948751750EeB3Ccf23CF);

Rate Changes

Authorization: Ecosystem Approval
Proposal: Forum Post

If this executive proposal passes, then the following rate changes will take place.

Stability Fee Changes

Reduce ETH-A Stability Fee by 1.75 percentage points from 7.75% to 6.00%.
Reduce ETH-B Stability Fee by 1.75 percentage points from 8.25% to 6.50%.
Reduce ETH-C Stability Fee by 1.75 percentage points from 7.50% to 5.75%.
Reduce WSTETH-A Stability Fee by 1.75 percentage points from 8.75% to 7.00%.
Reduce WSTETH-B Stability Fee by 1.75 percentage points from 8.50% to 6.75%.
Reduce WBTC-A Stability Fee by 1.75 percentage points from 12.75% to 11.00%.
Reduce WBTC-B Stability Fee by 1.75 percentage points from 13.25% to 11.50%.
Reduce WBTC-C Stability Fee by 1.75 percentage points from 12.50% to 10.75%.
Reduce ALLOCATOR-SPARK-A Stability Fee by 1.12 percentage points from 3.74% to 2.62%.

Savings Rate Changes

Reduce the DAI Savings Rate (DSR) by 2.00 percentage points from 5.50% to 3.50%.
Reduce the Sky Savings Rate (SSR) by 2.00 percentage points from 6.50% to 4.50%.

Smart Burn Engine `hop` Parameter Update

Authorization: Ecosystem Approval, Governance Poll 1208
Proposal: Forum Post

If this executive proposal passes, then the Smart Burn Engine hop parameter will be updated as follows:

Decrease the hop parameter by 432 seconds from 2,160 seconds to 1,728 seconds.

Bug Bounty Payout

Authorization: Atlas A.2.9.1.1
Proposal: Forum Post

If this executive proposal passes, then the following distributions for Immunefi bug #38567 will be made:

Transfer 50,000 USDS to the whitehat at 0x29d17B5AcB1C68C574712B11F36C859F6FbdBe32.
Transfer 5,000 USDS to Immunefi at 0x7119f398b6C06095c6E8964C1f58e7C1BAa79E18 (immunefi.eth).

Aligned Delegate Compensation for February 2025

Authorization: Atlas A.1.5.6
Proposal: Forum Post

If this executive proposal passes, then a total of 23,613 USDS will be distributed to seven Aligned Delegates and their teams as compensation for February 2025.

Delegate	Amount (USDS)	Address
BLUE	4,000	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Bonapublica	4,000	0x167c1a762B08D7e78dbF8f24e5C3f1Ab415021D3
Cloaky	4,000	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5
JuliaChang	4,000	0x252abAEe2F4f4b8D39E5F12b163eDFb7fac7AED7
WBC	3,613	0xeBcE83e491947aDB1396Ee7E55d3c81414fB0D47
PBG	3,429	0x8D4df847dB7FfE0B46AF084fE031F7691C6478c2
Byteron	571	0xc2982e72D060cab2387Dba96b846acb8c96EfF66

Atlas Core Development Payments

Authorization: Ecosystem Approval, Atlas Axis Approvals 1, 2
Proposal: Forum Post

If this executive proposal passes, then a total of 86,639 USDS and 618,000 SKY will be distributed for Atlas Core Development funding.

USDS Payments

Recipient	Amount (USDS)	Address
BLUE	50,167	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Cloaky	16,417	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5
Ennoia	10,055	0xA7364a1738D0bB7D1911318Ca3FB3779A8A58D7b
Kohla	10,000	0x73dFC091Ad77c03F2809204fCF03C0b9dccf8c7a

SKY Payments

Recipient	Amount (SKY)	Address
BLUE	330,000	0xb6C09680D822F162449cdFB8248a7D3FC26Ec9Bf
Cloaky	288,000	0x9244F47D70587Fa2329B89B6f503022b63Ad54A5

Integration Boost Top-up

Authorization: Atlas A.5.2.1.2
Proposal: Forum Post

If this executive proposal passes, then the following Integration Boost funding distribution will be made:

Transfer 3 million USDS to 0xD6891d1DFFDA6B0B1aF3524018a1eE2E608785F7.

Spark Proxy Spell

If this executive proposal passes, then a Spark Proxy Spell will be executed at 0x1e865856d8F97FB34FBb0EDbF63f53E29a676aB6 with the following contents.

Increase the Spark Effective DAI and USDS Borrow Rate Spread

Authorization: Ecosystem Approval
Proposal: Forum Post
Increase the spread between the SSR and the Spark Effective DAI and USDS borrow rate by ~0.25 percentage points, from ~0.25% to ~0.5%.

This change coupled with the SSR reduction in this spell will result in a net reduction to the Spark Effective Borrow Rate for USDS and DAI of ~1.75 percentage points, from ~6.75% to ~5%.

[Spark Liquidity Layer Base - Spark USDC Morpho] - Increase cbBTC Market Supply Cap

Authorization: Governance Poll 1197
Proposal: Forum Post
Increase the Supply Cap of the cbBTC/USDC market (0x9103c3b4e834476c9a62ea009ba2c884ee42e94e6e314a26f04d312434191836) by 400 million USDC from 100 million USDC to 500 million USDC.