The Governance Facilitator(s), Protocol Engineering Core Unit, Collateral Engineering Services Core Unit, and the Starknet Engineering Core Unit 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, and this wallet setup guide to set up your wallet to vote.

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Executive Summary

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

• The fee mechanism on the Starknet DAI bridge will be enabled, as detailed below.

If this executive proposal passes, the following additions will be made to the Maker Protocol:

• The technical work for onboarding the rETH-A vault type will be completed with the parameters below. Please note the Maximum Debt Ceiling (line) will be set to 0 until the Oracles Core Unit is ready to support the asset.

Voting for this executive proposal will place your MKR in support of the changes 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 which means that it can only be executed between 14:00 and 21:00 UTC, Monday - Friday. This is to ensure that at least some knowledgeable actors are available if issues arise with the new contracts deployed by this spell.

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

Enable Starknet DAI Bridge Fees

As per the successful outcome of this governance poll, the ability to charge fees will be enabled on the Starknet DAI Bridge if this executive proposal passes.

The technical changes to enable this fee have been explained in this post, for more information on the fee mechanism, please see this documentation.

rETH-A Technical Vault Type Onboarding

As per the successful outcome of these governance polls 1, 2, rETH will be onboarded with the parameters listed below if this executive proposal passes. Please note the Maximum Debt Ceiling (line) will be set to 0, and the Debt Ceiling Instant Access Module will be disabled until the Oracles Core Unit is ready to support the asset.

Collateral Parameters

• Underlying Collateral: Rocket Pool ETH (rETH)
• Ilk Name: rETH-A
• Stability Fee: 1.5%
• Liquidation Ratio: 170%
• Debt Floor (dust): 15000 DAI
• Maximum Debt Ceiling (line): 0 DAI

Liquidation Parameters

• Auction Price Function (calc): Stairstep Exponential
• Price Change Multiplier (cut): 0.99
• Price Change Interval (step): 90 seconds
• Auction Price Multiplier (buf): 1.1
• Liquidation Penalty (chop): 13%

Liquidation Limits

• Local Liquidation Limit (ilk.hole): 2 million DAI
• Maximum Auction Drawdown (cusp): 0.45
• Maximum Auction Duration (tail): 120 minutes
• Breaker Price Tolerance (tolerance): 0.5

Liquidation Incentives

• Proportional Kick Incentive (chip): 0.1%
• Flat Kick Incentive (tip): 250 DAI

Please review the following forum threads containing information about rETH to inform your position before voting.

• Proposal Thread
• Risk Core Unit Evaluation
• Updated Risk Core Unit Evaluation
• Smart Contract Technical Assessment
• Oracles Core Unit Evaluation

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.

Additionally, these changes may have been discussed further in recent Governance calls. Video for these calls is available to review.

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Resources

Additional information about the Governance process can be found in the Governance section of the MakerDAO community portal.

To participate in future Governance calls, please join us every Thursday at 17:00 UTC.

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