The Governance Facilitators, Dewiz, and Sidestream have placed an out-of-schedule executive proposal into the voting system. MKR 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 (previously 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 actions will occur within the Sky Protocol in the context of Launch Season:

• The USDS, sUSDS, and SKY tokens will be initialized.
• The Smart Burn Engine (SBE) will be upgraded to support USDS and SKY.
• SKY DssVestMintable will be set up.
• USDS->SKY farming will be set up.
• USDS->01 farming will be set up.
• LitePsmWrapper will be added to the chainlog.
• The GSM Pause Delay will be reduced.

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

To learn more about Launch Season, refer to:

• MakerDAO Endgame: Launch Season (final)
• Sky has arrived!
• Endgame: Announcing the Token and Product Launch forum post

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 30 hours.

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.

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Proposal Clarifications

Execution date restriction

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

This executive proposal has its earliest execution date set to September 17, 2024 at 12:00 UTC. This means that it cannot be executed before that date.

New Contract ESM Exclusion

• Authorization: Ecosystem Approval
• Proposal: Forum Post

The Emergency Shutdown Module (ESM) will not be authorized in any new contracts deployed for this proposal.

For more details on this decision, you can refer to this forum post.

Proposal Details

USDS, sUSDS, and SKY Tokens Initialization

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then the new USDS, sUSDS, and SKY tokens will be initialized by performing the actions detailed below.

USDS

Initialize USDS by calling UsdsInit.Init with the following parameters:

• usds: 0xdC035D45d973E3EC169d2276DDab16f1e407384F
• usdsImp: 0x1923DfeE706A8E78157416C29cBCCFDe7cdF4102
• UsdsJoin: 0x3C0f895007CA717Aa01c8693e59DF1e8C3777FEB
• DaiUsds: 0x3225737a9Bbb6473CB4a45b7244ACa2BeFdB276A

sUSDS

Initialize sUSDS by calling sUsdsInit.Init with the following parameters:

• susds: 0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD
• sUsdsImp: 0x4e7991e5C547ce825BdEb665EE14a3274f9F61e0
• UsdsJoin: 0x3C0f895007CA717Aa01c8693e59DF1e8C3777FEB
• usds: 0xdC035D45d973E3EC169d2276DDab16f1e407384F
• ssr: 6.25%

SKY

Initialize SKY by calling SkyInit.Init with the following parameters:

• sky 0x56072C95FAA701256059aa122697B133aDEd9279
• mkrSky 0xBDcFCA946b6CDd965f99a839e4435Bcdc1bc470B
• rate: 24,000

These functions will also add the following elements to the chainlog:

Init Parameter	Address	Chainlog Key
usds	0xdC035D45d973E3EC169d2276DDab16f1e407384F	USDS
usdsImp	0x1923DfeE706A8E78157416C29cBCCFDe7cdF4102	USDS_IMP
UsdsJoin	0x3C0f895007CA717Aa01c8693e59DF1e8C3777FEB	USDS_JOIN
DaiUsds	0x3225737a9Bbb6473CB4a45b7244ACa2BeFdB276A	DAI_USDS
sUsds	0xa3931d71877C0E7a3148CB7Eb4463524FEc27fbD	SUSDS
sUsdsImp	0x4e7991e5C547ce825BdEb665EE14a3274f9F61e0	SUSDS_IMP
sky	0x56072C95FAA701256059aa122697B133aDEd9279	SKY
mkrSky	0xBDcFCA946b6CDd965f99a839e4435Bcdc1bc470B	MKR_SKY

The following permissions will be granted by the functions mentioned above:

• The usdsJoin Adapter will be authorized in the usds contract by calling rely through the UsdsInit.init function.
• The sUSDS contract will be authorized to access the vat by calling rely through the SUsdsInit.init function.
• The mkrSky contract will be authorized in the sky contract by calling rely through the SkyInit.init function.
• The mkrSky contract will be authorized in the MkrAuthority contract by calling rely through the SkyInit.init function.

Smart Burn Engine (SBE) Upgrade

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then the SBE will be upgraded to support the new USDS and SKY tokens. The upgrade entails the following actions:

UniV2 Pool Migration

The DAI/MKR UniV2 pool funds will be migrated to the USDS/SKY UniV2 pool by executing the UniV2 Pool Migrator script with the following parameters:

• pairDaiMkr: 0x517F9dD285e75b599234F7221227339478d0FcC8
• pairUsdsSky: 0x2621CC0B3F3c079c1Db0E80794AA24976F0b9e3c

DssFlapper Initialization

A new DssFlapper will be initialized. This entails the following actions:

Splitter Initialization

The Splitter will be initialized by calling the FlapperInit.initSplitter function with the following parameters:

• splitter: 0xBF7111F13386d23cb2Fba5A538107A73f6872bCF
• mom: 0xF51a075d468dE7dE3599C1Dc47F5C42d02C9230e
• hump: 55 million DAI
• bump: 65,000 DAI
• hop: 10,249 seconds
• burn: 100% (1 * WAD)
• usdsJoin: 0x3C0f895007CA717Aa01c8693e59DF1e8C3777FEB
• splitterChainlogKey: MCD_SPLIT
• prevMomChainlogKey: FLAPPER_MOM
• momChainlogKey: SPLITTER_MOM

The state variable flapper in the vow will be changed to the splitter address by calling file through the FlapperInit.initSplitter function.

Flapper Initialization

The Flapper will be initialized by calling the FlapperInit.initFlapperUniV2 function with the following parameters:

• flapper_: 0xc5A9CaeBA70D6974cBDFb28120C3611Dd9910355
• want: 98% (98 * WAD / 100)
• pip: 0x38e8c1D443f546Dc014D7756ec63116161CB7B25
• pair: 0x2621CC0B3F3c079c1Db0E80794AA24976F0b9e3c
• usds: 0xdC035D45d973E3EC169d2276DDab16f1e407384F
• splitter: 0xBF7111F13386d23cb2Fba5A538107A73f6872bCF
• prevChainlogKey: MCD_FLAP
• chainlogKey: MCD_FLAP

Oracle Initialization

The Oracle will be initialized by calling the FlapperInit.initOracleWrapper function with the following parameters:

• wrapper_: 0x38e8c1D443f546Dc014D7756ec63116161CB7B25
• divisor: 24,000
• clKey: FLAP_SKY_ORACLE

Wrapper will be authorized to read the MKR oracle price through the FlapperInit.initOracleWrapper function.

SKY DssVestMintable Setup

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then DssVestMintable for SKY will be set up through the following actions:

• Authorize DssVestMintable on SKY by calling DssExecLib.authorize with the following parameters:
  • _base: 0x56072C95FAA701256059aa122697B133aDEd9279
  • _ward: 0xB313Eab3FdE99B2bB4bA9750C2DDFBe2729d1cE9
• Set DssVestMintable max rate (cap) by calling DssExecLib.setValue with the following parameters:
  • _base: 0xB313Eab3FdE99B2bB4bA9750C2DDFBe2729d1cE9
  • _what: "cap"
  • _amt: 799,999,999.999999999985808000 SKY per year (800M * WAD / 365 days )
• Add DssVestMintable to Chainlog by calling DssExecLib.setChangelogAddress with the following parameters:
  • _key: MCD_VEST_SKY
  • _val: 0xB313Eab3FdE99B2bB4bA9750C2DDFBe2729d1cE9

USDS->SKY Farming Setup

• Authorization: Ecosystem Approval 1, Ecosystem Approval 2, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then the USDS->SKY farming setup will be initialized through the following actions:

• Initialize USDS->SKY Token Rewards (STR) by calling UsdsSkyFarmingInit.init with the following parameters:

  • usds: 0xdC035D45d973E3EC169d2276DDab16f1e407384F
  • sky: 0x56072C95FAA701256059aa122697B133aDEd9279
  • rewards: 0x0650CAF159C5A49f711e8169D4336ECB9b950275
  • rewardsKey: REWARDS_USDS_SKY
  • dist: 0x2F0C88e935Db5A60DDA73b0B4EAEef55883896d9
  • distKey: REWARDS_DIST_USDS_SKY
  • vest: 0xB313Eab3FdE99B2bB4bA9750C2DDFBe2729d1cE9
  • vestTot: 600M * WAD
  • vestBgn: block.timestamp - 7 days
  • vestTau: 365 days - 1

• Call distribute() in VestedRewardsDistribution contract in the spell execution.

The following SKY vesting stream will be created for rewards distribution through the UsdsSkyFarmingInit.init function:

SKY Vesting Stream | from 'block.timestamp - 7 days' for '365 days - 1' | 600M * WAD SKY | 0x2F0C88e935Db5A60DDA73b0B4EAEef55883896d9

• Initialize the new cron job by calling VestedRewardsDistributionJobInit.init with the following parameters:
  • job: 0x6464C34A02DD155dd0c630CE233DD6e21C24F9A5
  • cfg.jobKey: CRON_REWARDS_DIST_JOB
• Add VestedRewardsDistribution to the new cron job by calling VestedRewardsDistributionJobInit.setDist with the following parameters:
  • job: 0x6464C34A02DD155dd0c630CE233DD6e21C24F9A5
  • cfg.dist: 0x2F0C88e935Db5A60DDA73b0B4EAEef55883896d9
  • cfg.interval: 7 days - 1 hours

USDS->01 Farming Setup

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then the USDS->01 farming setup will be initialized through the following actions:

• Initialize STR 01 Rewards by calling Usds01PreFarmingInit.init with the following parameters:
  • usds: 0xdC035D45d973E3EC169d2276DDab16f1e407384F
  • rewards: 0x10ab606B067C9C461d8893c47C7512472E19e2Ce
  • rewardsKey: REWARDS_USDS_01

LitePsmWrapper Addition to the Chainlog

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then the LitePsmWrapper will be added to the Chainlog through the following actions:

• Add LitePsmWrapper to the Chainlog by calling DssExecLib.setChangelogAddress with the following parameters:
  • _key: WRAPPER_USDS_LITE_PSM_USDC_A
  • _val: 0xA188EEC8F81263234dA3622A406892F3D630f98c

GSM Pause Delay Update

• Authorization: Ecosystem Approval, Poll 1134
• Proposal: Forum Post

If this executive proposal passes, then the GSM Pause Delay will be decreased by 14 hours, from 30 hours to 16 hours.

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.