Stablecoin Vault Liquidation Parameters and Auction Activation - November 14, 2022
The Governance Facilitators have placed a Governance Poll into the voting system on behalf of the Maker Community and the Risk Core Unit. This Governance Poll will be active for three days beginning on Monday, November 14 at 16:00 UTC.
This is a binary vote.
- You may vote for a single option.
- You should vote for the option which you prefer.
- If you would accept either option, you should vote 'Abstain'.
The community can vote in this poll to express support or opposition to the following changes for USDC-A, USDP-A, and GUSD-A:
- Enable Liquidations.
- Use Linear Decrease for Auction Price Function (
- Set Liquidation Penalty (
chop) to 0.
- Set Proportional Kick Incentive (
chip) to 0.
- Set Flat Kick Incentive (
tip) to 0.
- Set Auction Price Multiplier (
buf) to 1.
tauto 4,320,000 seconds (72,000 minutes, or 1,200 hours). This results in an estimated 10bps drop in price every 72 minutes, or 50 days until the price reaches 0.
- Set Max Auction Duration (
tail) to 43,200 secpnds (720 minutes, or 12 hours). This implies a minimum price of 0.99.
- Set Max Auction Drawdown (
cusp) to 0.99.
- Individually set the Local Liquidation Limit (
ilk.hole) for the vault types as follows:
- USDC-A - 20 million DAI
- USDP-A - 3 million DAI
- GUSD-A - 300,000 DAI
Please review the discussion thread to help inform your position before voting.
For more information on the motivation behind these changes, please see the initial signal request from @nonstopTheo.
If the votes for the 'Yes' option exceed the votes for the 'No' option then the following actions will be taken:
- These changes will be included in an upcoming Executive Vote as the Protocol Engineering Core Unit's schedule allows.
- It is expected that this Executive Vote will take place within 30 days of this poll passing, absent external factors.
- If the Executive Vote passes, then these changes will become active in the Maker Protocol after the GSM Pause Delay has expired.
If the votes for the 'No' option equal or exceed the votes for the 'Yes' option then no further action will be taken at this time.
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.