Maker Governance - Proposal LITE-PSM-USDC-A Phase 2 Setup

LITE-PSM-USDC-A Phase 2 Setup - August 22, 2024

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 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.

Executive Summary

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

The PSM state variables in the conduit contracts will be updated to MCD_LITE_PSM_USDC_A.
All but 200 million USDC reserves will be migrated from PSM-USDC-A to LITE-PSM-USDC-A.
PSM-USDC-A fees will be updated.
PSM-USDC-A DC-IAM parameters will be updated.
MCD_LITE_PSM_USDC_A buf will be increased.
LITE-PSM-USDC-A DC-IAM parameters will be updated.
The GSM Delay will be increased.
The LitePSM Keeper Network Job will be updated.

Voting for this executive proposal will place your MKR 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 Maker Protocol after the GSM Pause Delay has expired. The GSM Pause Delay is currently set to 16 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.

Proposal Details

Update PSM State Variables in Conduit Contracts

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, then the PSM state variables in the following conduit contracts will be updated to point to MCD_LITE_PSM_USDC_A:

Migrate Reserves from PSM-USDC-A to LITE-PSM-USDC-A

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, all but 200 million USDC reserves from PSM-USDC-A will be migrated to LITE-PSM-USDC-A.

Update PSM-USDC-A Fees

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, then the PSM-USDC-A fees will be updated as follows:

PSM-USDC-A Fee In (tin) will be increased by 0.01 percentage points from 0% to 0.01%.
PSM-USDC-A Fee Out (tout) will be increased by 0.01 percentage points from 0% to 0.01%.

Update PSM-USDC-A DC-IAM Parameters

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, then the PSM-USDC-A DC-IAM parameters below will be updated as follows:

PSM-USDC-A DC-IAM Maximum Debt Ceiling (line) will be decreased by 7,500 million DAI from 10,000 million DAI to 2,500 million DAI.
PSM-USDC-A DC-IAM Target Available Debt (gap) will be decreased by 180 million DAI from 380 million DAI to 200 million DAI.
PSM-USDC-A DC-IAM Ceiling Increase Cooldown (ttl) will remain unchanged at 12 hours.

Update MCD_LITE_PSM_USDC_A `buf`

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, then the MCD_LITE_PSM_USDC_A fixed-sized amount of pre-minted Dai (buf) will be increased as follows:

MCD_LITE_PSM_USDC_A Fixed-sized Amount of Pre-minted Dai (buf) will be increased by 180 million DAI from 20 million DAI to 200 million DAI.

Update LITE-PSM-USDC-A DC-IAM Parameters

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, then the LITE-PSM-USDC-A DC-IAM will be updated as follows:

LITE-PSM-USDC-A DC-IAM Maximum Debt Ceiling (line) will be increased by 7,450 million DAI from 50 million DAI to 7,500 million DAI.
LITE-PSM-USDC-A DC-IAM Target Available Debt (gap) will be increased by 180 million DAI from 20 million DAI to 200 million DAI.
LITE-PSM-USDC-A DC-IAM Ceiling Increase Cooldown (ttl) will remain unchanged at 12 hours.

Update GSM Delay

Authorization: Governance Facilitator Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, the GSM Pause Delay will be updated as follows:

The GSM Pause Delay will be increased by 14 hours from 16 hours to 30 hours.

Update LitePSM Keeper Network Job

Authorization: Ecosystem Approval, Poll 1128
Proposal: Forum Post

If this executive proposal passes, then the LitePSM Keeper Network Job will be updated with the following contract calls and parameters, as a consequence of the LITE-PSM-USDC-A DC-IAM and buf parameter changes described earlier in this document:

The old LitePSM job will be removed from the CronSequencer through contract call sequencer.removejob(0x689cE517a4DfCf0C5eC466F2757D324fc292C8Be).
The new LitePSM job will be added to the CronSequencer through contract call sequencer.addjob(0x0c86162ba3e507592fc8282b07cf18c7f902c401).
fill: The rushThreshold will be set to 20 million DAI.
trim: The gushThreshold will be set to 20 million DAI.
chug: The cutThreshold will remain unchanged at 300,000 DAI.
The chainlog entry for CRON_LITE_PSM_JOB will be updated to 0x0c86162ba3e507592fc8282b07cf18c7f902c401.

The new LitePSM job meets all the requirements outlined in the LitePSM Job Post-Mortem.

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.