The Governance Facilitators, Sidestream, Dewiz, and Phoenix Labs 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:

• ETH-A, ETH-B, ETH-C, WSTETH-A, WSTETH-B, WBTC-A, WBTC-B, WBTC-C Stability Fees will be increased, as detailed below.
• PSM-PAX-A Debt Ceiling (line) will be set to zero and the vault will be removed from the Debt Ceiling Instant Access Module (AutoLine).
• RETH-A offboarding will be finalized by changing some of its vault parameters, as detailed below.
• Smart Burn Engine parameters bump (lot size) and hop (frequency) will be changed, as detailed below.
• A DAO resolution pertaining to the HV Bank vault will be approved to instruct the Director of RWAF to take all required actions to facilitate the return of funds back to Maker, via Galaxy as the exchange agent, as detailed below.
• A total of 208.5 MKR will be distributed to 10 AVC members as part of the Q4 2023 AVC rewards.
• A Spark Protocol proxy spell will be triggered, 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.

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

ETH-A, ETH-B, ETH-C, WSTETH-A, WSTETH-B, WBTC-A, WBTC-B, WBTC-C Stability Fees Increases

Authorization: Ecosystem Approval
Proposal: Forum post "Stability Scope Parameter Changes #8"

If this executive proposal passes, following the recommendation of the Stability Scope Advisory Council Member, BA Labs, the following parameters will be changed:

• The ETH-A Stability Fee will be increased by 1.49%, from 5.25% to 6.74%.
• The ETH-B Stability Fee will be increased by 1.49%, from 5.75% to 7.24%.
• The ETH-C Stability Fee will be increased by 1.49%, from 5.00% to 6.49%.
• The WSTETH-A Stability Fee will be increased by 1.91%, from 5.25% to 7.16%.
• The WSTETH-B Stability Fee will be increased by 1.91%, from 5.00% to 6.91%.
• The WBTC-A Stability Fee will be increased by 0.91%, from 5.79% to 6.70%.
• The WBTC-B Stability Fee will be increased by 0.91%, from 6.29% to 7.20%.
• The WBTC-C Stability Fee will be increased by 0.91%, from 5.54% to 6.45%.

Decrease PSM-PAX-A Debt Ceiling

Authorization: Ecosystem Approval
Proposal: Forum post "Stability Scope Parameter Changes #8"

If this executive proposal passes, in line with the recent removal of PSM-PAX-A from the Cash Stablecoin list in the Stability Scope, the following actions will be performed:

• The Debt Ceiling (line) will be set to 0 DAI.
• The vault will be removed from the Debt Ceiling Instant Access Module (AutoLine).

RETH-A Offboarding Parameters Finalization

Authorization: Ecosystem Approval
Proposal: Forum post "Stability Scope Parameter Changes #8"

The offboarding of RETH-A will be completed by enacting the following parameter changes, if this executive proposal passes:

• Reduce Liquidation Penalty (chop) by 13% from 13% to 0%.
• Reduce Flat Kick Incentive (tip) by 250 DAI from 250 DAI to 0 DAI.
• Reduce Proportional Kick Incentive (chip) by 0.1% from 0.1% to 0%.
• Increase Liquidation Ratio (mat) by 9,850% from 150% to 10,000%.

SBE Parameter Changes

Authorization: Ecosystem Approval
Proposal: Forum post "Smart Burn Engine - Transaction Analysis & Parameter Reconfiguration Update #4"

If this executive proposal passes, following the recommendation of the Stability Scope Advisory Council Member, BA Labs, the following SBE parameters will be changed:

• The bump (lot size) parameter will be increased by 20,000 DAI, from 30,000 DAI to 50,000 DAI.
• The hop (frequency) parameter will be increased by 10,512 seconds , from 15,768 seconds to 26,280 seconds.

Approve HV Bank (RWA009-A) DAO Resolution

Authorization: Ecosystem Approval 1, 2
Proposal: Forum posts 1, 2

If this executive proposal passes, a DAO resolution pertaining to the HV Bank vault will be approved to instruct the Director of RWAF to take all required actions to facilitate the return of $50,395,016.48 or other amount deemed to be excess cash under the MPA back to Maker, via Galaxy as the exchange agent. The Director of RWAF will be instructed to direct Galaxy to, upon receipt of the Return Amount, convert it into USDC and transfer the USDC to the Urn Input Conduit deployed at 0x08012Ec53A7fAbf6F33318dfb93C1289886eBBE1.

To execute this process, the following action will be taken if the executive proposal passes:

• The DAO Resolution with IPFS hash QmVtqkYtx61wEeM5Hb92dGA3TMZ9F1Z5WDSNwcszqxiF1w will be approved.
• RWA009_A_INPUT_CONDUIT_URN_USDC deployed at 0x08012Ec53A7fAbf6F33318dfb93C1289886eBBE1 will be added to the chainlog on Mainnet.

Further, .rely(MCD_ESM) will be called on the SwapInputConduit contracts to allow the ESM module to deny the pause proxy. In the event of a successful governance attack, this prevents funds from being stolen from the SwapInputConduit contracts.

AVC Members Compensation Q4 2023

Authorization: Atlas 2.5.10
Proposal: Forum post "AVC Member Participation Rewards - Q4 2023"

If this executive proposal passes, the following distributions will be made for Q4 AVC member compensation, totaling 208.5 MKR:

Delegate	Address	Amount (MKR)
IamMeeoh	0x47f7A5d8D27f259582097E1eE59a07a816982AE9	20.85 MKR
DAI-Vinci	0x9ee47F0f82F1A6F45C4E1D25Ce95C321D8C8356a	20.85 MKR
opensky	0xf44f97f4113759E0a57756bE49C0655d490Cf19F	20.85 MKR
ACRE DAOs	0xBF9226345F601150F64Ea4fEaAE7E40530763cbd	20.85 MKR
fhomoney.eth	0xdbD5651F71ce83d1f0eD275aC456241890a53C74	20.85 MKR
Res	0x8c5c8d76372954922400e4654AF7694e158AB784	20.85 MKR
Harmony	0xE20A2e231215e9b7Aa308463F1A7490b2ECE55D3	20.85 MKR
Libertas	0xE1eBfFa01883EF2b4A9f59b587fFf1a5B44dbb2f	20.85 MKR
seedlatam.eth	0x0087a081a9b430fd8f688c6ac5dd24421bfb060d	20.85 MKR
0xRoot	0xC74392777443a11Dc26Ce8A3D934370514F38A91	20.85 MKR

Trigger Spark Proxy Spell

Authorization: Ecosystem Approval, Governance Polls 1, 2, 3
Proposal: Forum post "Stability Scope Parameter Changes #8", forum post "[Jan 10, 2024] Proposed Changes to SparkLend for Upcoming Spell"

If this executive proposal passes, the SparkLend Proxy Spell (Ethereum) at 0xa3836fEF1D314d4c081C2707a7664c3375F29b61 will be executed, containing the following major items:

• Increase WBTC Supply Cap to 5,000 WBTC.
• Upgrade DAI, USDC, and USDT IRMs.
• Update USDC and USDT markets to use a fixed price oracle of 1 USD.
• Increase the Spark DAI Effective Borrow APY by 0.93%, from 5.53% to 6.46%.

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.

---

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.