MKR Holder DAI-gest: Week 17, 2020: Action Required: The State of the Peg

Governance Recap April 23, 2020

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MKR Holder DAI-gest is a weekly Maker governance recap that is written by the community for the community. The best source of Maker Community information is through active participation and engagement. This supplemental publication strives to present all relevant facts and remain free of editorial opinion (Big 3 takeaway excepted). The statements made herein are not the opinions or statements of the Maker Foundation.

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Big 3 Take-Aways for the Week:

  • The state of the peg has caused concern within and without the MakerDAO community. Some of the larger Maker holders stepped forward and posted their concerns around the state of the peg directly in the Maker forum. This spurred a lot of momentum in the platform, discussed further in this issue.
  • Intention to implementation. The DAO is getting very busy, and thought needs to be given to determining the feasibility of proposals, getting buy-in, and recruiting the appropriate skill sets in the community. Timing is key. The DAO is in need of a project management framework that is effortless and easily integrated into the current systems.

Dispositioned Governance Agenda


  • Wrapped BTC has been proposed for collateral on-boarding.
  • USDC Risk parameter adjustment and on-boarding additional stable coins such as PAX and TUSD.
  • On-boarding LINK as a new collateral type.
  • Self-sustaining DAO: MIPS 0–12 — Ratification timeline and two additional sub-proposals have been shared in the forum.
  • System Reserves — Deciding a prudent reserve amount of DAI for emergency events. A forum poll is now open.


  • SCD shutdown going to Executive Vote on April 24, 2020, three-week delay to follow for a final shutdown date of May 12, 2020.
  • Zero bid auction post mortem data evaluation — Maker Man currently completing the data analytics from black Thursday. This part is moving behind the scenes. A report is forthcoming in the next several weeks.
  • Public relations consortium — Communication team to create consistent and representative communications on behalf of the DAO and to report meaningful ecosystem sentiment back to the governance community. The team has been having weekly meetings, a first report is due by the end of the month.


  • Compensating Zero Bid Vault Owners. The poll was affirmative to compensate vault holders. Currently waiting on data analytics from Maker Man before restarting in another thread.
  • DeFi Emergency shutdown consortium
  • Dark fix — “
  • Flip / Flop auction usability
  • Maker token authority
  • Precedent for on-chain polling. Signaling started to determine the governance community’s feelings about having foundation member proposals require on-chain polling. The forum thread seems to have died.


  • Ranked-choice polling
  • MKR Debt Auctions — Completed successfully
  • USDC On-boarding
  • Deep dive into collateral on-boarding — Presentation to community completed, see forum for the movement
  • Governance cycle: MIPS 3 Presented in G and R Call — Presentation completed, see forum for the movement

DAI Digits

Governance Polls and Executive Votes

Passed on April 20, 2020: Executive Vote Adjust the USDC, Sai and Dai Stability Fees

  • Raise the Sai Stability Fee from 8% to 8.5%
  • Lower the Dai Stability Fee from 0.5% to 0%
  • Note: This will set the DSR to 0%

Passed on April 25, 2020: Executive Vote Lower USDC SF, Lower USDC LR, Whitelist Oracles, Raise Dai DC, Raise GSM Delay, Deactivate MKR Oracle in SCD

  • Lower the USDC Liquidation Ratio from 125% to 120%
  • Whitelist Set Protocol on ETH/USD Oracle
  • Create BTC/USD Oracle + Whitelist Set Protocol and dYdX
  • Create ETH/BTC Oracle + Whitelist tBTC
  • Deactivate the MKR Oracle in SCD
  • Raise the Governance Security Module delay from 4 hours to 12 hours
  • Raise the DAI Debt Ceiling from 90 Million to 100 Million

All recent polls are closed and represented in the most recent Executive Vote. Further information can be found here.

Governance Hot Topics

State of the Peg

Confidence has not yet fully returned regarding the recent market volatility. Also, people are holding on to stable coins due to market fears. This has caused a serious lack of DAI liquidity, creating high demand, and affecting the peg.

Prices this last week ranged from one to two cents above peg. Paraficapital, a larger corporate Maker holder in the governance community posted their concerns in the forum and related the sentiment of worry in the ecosystem regarding DAI being off the peg. This brought about immediate discussion and action regarding monetary policy and collateral on-boarding. The most recent passed Executive Vote contains monetary policy to make minting DAI more lucrative from USDC. Also, some exciting new collateral types are being considered for use in the MakerDAO platform. More on that next…

WBTC as a new collateral type?

Many players in the DeFi ecosystem are excited about this step. Bitcoin is the most popular and most valuable cryptocurrency. While there is a small amount of WBTC use on current DeFi platforms, it was stated that people have been waiting for Maker to adopt WBTC as a collateral type. It was also said that using WBTC as ERC-20 collateral is the primary use case for ERC-20 Bitcoin. Forum links are listed below for this subject.

Other Collateral Considerations

MIPS 0–12 Due for Initial Polling; if Passed Moving on to Executive Vote

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SCD Shutdown

Stability fees are going to be set to zero to incentivize the closing of vaults. If you are still holding SAI as of the time it shuts down, you should be able to redeem your SAI for ETH via the migration portal at

Forum Activity and Signaling

Trending Issues in the Forum:

Weekly Governance and Risk Meeting

Here is a guide from MakerDAO about becoming involved in Governance. The meeting is held every Thursday, 17:00 UTC. During the postmortem and corrective action phase of the recent crypto market prices and resulting fiasco there has been a daily call. This is expected to drop to two calls over the next week. Please check the forums for information related to ad-hoc governance and risk calls that may be happening.

Governance and Risk Meeting Community Guide

  • Understand the issues that are discussed and governance themes that get explored to build a healthy, secure, Maker Platform.
  • Get info on how to connect by phone or webcam.
  • Explore meeting archives.


  • May 7, 2020 Ethereal Virtual Summit 2020 (virtual)
  • May 11, 2020 Consensus: Distributed (virtual)
  • May 14, 2020 Blockconf (virtual)
  • May 15, 2020 PolyFinTech 100 API Hackathon 2020 (virtual)
  • May 18, 2020 Crypto Asia Summit (Virtual)
  • Sep 22, 2020 Money 20/20 Europe 2020Amsterdam, NL
  • Oct 21, 2020 ANON 2020 Vienna, AT
  • Dec 9, 2020 Paris Blockchain Week Summit Paris, FR
  • MakerDAO Community Events Calendar
  • Weekly Community Development Meeting — Tuesdays 09:00 PST
  • Weekly Governance and Risk Meeting — Thursdays 09:00 PST

Written by

Cryptocurrency enthusiast and student of life, in Portland, OR

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