Spark Lend D3M Onboarding - May 02, 2023
The Arbitration Facilitator(s), Phoenix Labs, PullUp, and dewiz 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 additions will be made to the Maker Protocol:
- A new D3M to Spark Lend will be added to the Maker Protocol, 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.
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. This is to ensure that at least some auction keepers are available to react to unforeseen issues with their bots in the event of early liquidations on new collateral types.
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
Spark Lend D3M Onboarding
As per previous approval in multiple polls (1, 2, 3, 4, 5) and per the Scope Frameworks (Decentralized Collateral Scope, Ecosystem Scope), the D3M to Spark Lend will be activated in this spell using the following parameters:
Vault Parameters
- Ilk Name: DIRECT-SPARK-DAI
- Increase the Maximum Debt Ceiling (
line
) to 5 million DAI. - Set Target Available Debt (
gap
) to 5 million DAI. - Set Ceiling Increase Cooldown (
ttl
) to 8 hours. - Set
tau
to 7 days; this parameter defines the time period required before debt can be written off after a D3M has been caged.
Additional Parameters/Instructions
- Assign
King
to the Pause Proxy with address: 0xBE8E3e3618f7474F8cB1d074A26afFef007E98FB. This address will receive any rewards. - Set Aave Buffer Plan (
buffer
) to 30 million DAI. This ensures a fixed liquidity buffer on the DAI Pool. - Set
baseRateConversion
to 1/90%. This value is multiplied by the DSR to set the DAI market borrow rate. - Set
borrowSpread
to 0. This will keep the borrow rate flat if the D3M Debt Ceiling is above the vault debt. - Set
supplySpread
to 0. - Set
maxRate
to 75%. This is the maximum value for both supply and borrows and is encouraged when vault debt exceeds the Debt Ceiling of the D3M. - Update the DAI Interest Strategy Contract to
0x113dc45c524404F91DcbbAbB103506bABC8Df0FE
, disabling the performance bonus. - Set DAI Reserve Factor to 0% using
poolConfigurator.setReserveFactor(DAI_ADDRESS, 0)
. This means all revenue will be sent to Maker. - Freeze the WBTC market using
poolConfigurator.setReserveFreeze(WBTC_ADDRESS, true)
. This aligns with the Decentralized Collateral Scope Framework.
For more information on Direct Deposit Modules, please see the entry in the Maker Operational Manual here.
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.
Resources
Additional information about the Governance process can be found in the Maker Operational Manual.
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 Governance Calendar.