The MakerDAO Governance Facilitator has placed a governance poll into the voting system on behalf of the Maker Governance community which gives Maker Governance the chance to signal their support or opposition for the implementation of the Rates V2 plan.

This non-standard weekly Governance Poll (FAQ) will be active for 3 days beginning on Monday, October 12 at 16:00 UTC.

Review

Please refer to the Signal Request for a detailed outline of the proposal.

Plan:

• Scrap the current Stability Fee formula involving the Base Rate. The Base Rate will no longer be voted on after this proposal passes, and a MIP18 vote will be added to deprecate it formally.
• Formation of the Rates Working Group. A somewhat loosely defined group consisting of Domain Team Facilitators and community members. Initial members being @hexonaut, @Primoz, @LongForWisdom, @monet-supply, @SebVentures and @Akiva.
• Introduction of the Competitive Rate: A rate which is based on the competitive landscape. For example if our competition is offering borrowing at 5% for a particular asset, we may decide to offer that same asset for 4%.
• The Rates Working Group will keep track of governance directives, risk premiums and competitive rates to produce a set of stability fees for each vault type. Mostly this will involve setting the rates by competitive analysis coming from risk.
• The Risk Team will start producing Risk Premium / Competitive Rates on a monthly basis which get handed off to the Rates Working Group who will propose the Stability Fee rate changes.
• Dai Savings Rate will remain at 0% until governance signals otherwise.
• Development of a more formal MIP as this process is smoothed out.

Next Steps

If this proposal passes then:

• The plan described above will be implemented.
• There will be no base rate votes starting the week of October 19th.
• The Risk team will produce numbers starting week of October 19th.
• The Rates group will make their first proposal in the forums starting the week of October 19th.
• The Rates group will create a governance poll for October 26th which, pending success, will go into the Friday executive.

If this proposal fails to pass then:

• The status quo will remain.
• The Rates group will work to produce an alternative proposal based on feedback.

Resources

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.

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 16:00 UTC.

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