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Ratification Poll: Update rETH Onboarding Parameters

Created: September 26th, 2022

Passed: Not yet but looking likely,

82K MKR for

What does it do: Updates the rETH Onboarding Parameters found here to the following:

  1. Decrease Stability Fee by 0.75%, from 2.25% to 1.5%.

  2. Decrease Auction Price Multiplier (buf) by 0.1, from 1.2 to 1.1.

  3. Increase Max Auction Drawdown (cusp) by 0.05, from 0.4 to 0.45.

  4. Decrease Max Auction Duration (tail) by 20 minutes, from 140 minutes (8,400 seconds) to 120 minutes (7,200 seconds).

  5. Decrease Flat Kick Incentive (tip) by 50 DAI, from 300 DAI to 250 DAI.

Why: As outlined in the proposal, the changes to the onboarding parameters will allow for more efficient onboarding of the collateral in the protocol. All the updates are done to match WSTETH-A which is a good proxy for figuring out and setting the rETH parameters. 

Explanations for each update are as follows:

  1. The Stability Fee parameter is an annual percentage fee charged on the DAI generated on vaults.

  2. The Auction Price Multiplier parameter is a multiplier that is applied to the starting price of a collateral auction.

  3. The Maximum Auction Drawdown is the maximum percentage drop in collateral price during a collateral auction before the auction is reset.

  4. The Maximum Auction Duration parameter sets the maximum time that can elapse before an auction needs to reset for a particular vault type. 

  5. The Flat Kick Incentive parameter represents a reward in DAI paid to the keepers that trigger collateral liquidation auctions in the Maker Protocol.

Takeaway: The Maker Risk Core Unit appropriately monitors and manages risk when onboarding collateral.

Greenlight Poll: RFA (RFA - Canadian Federally Regulated Mortgage Originator) 

Created: September 19th, 2022

Passed: Not yet,

28K MKR For,
26K MKR Against,
10.5K MKR Abstain

What does it do: Determines if RFA should be a priority for inclusion by Core Units.

Why: Like the successful HVbank RWA arrangement, the greenlight poll establishes a community quorum on the priority of including RFA as a core unit priority. RFA was established in 1996 by real estate and banking professionals. The firm has participated in more than $20 billion in commercial real estate transactions in Canada. The Bank is a strong contender for RWA onboarding given its history of success in the Canadian markets.

Takeaway: While undergoing discussions of structural and focus changes, MakerDAO is continuing to attract RWA applications from top institutions.

Updates on Prior Coverage

  • Ratification Poll:Amend Measurement Period… Delegate - Approved with 91K MKR

  • Ratification Poll:  GovAlpha Core Unit MKR Budget - 150% multiplier with 65K MKR

  • Ratification Poll: MakerDAO Delegates MIP Set - Deferred with 50K MKR

  • Executive Proposal:Multiple updates - Approved with 93K MKR

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Temperature Check: Llama <> Aave

Created: September 23th, 2022

Passed: Yes,

290K AAVE For,
1K AAVE Against

What does it do: Proposes a 12-month workplan with Aave on treasury management, protocol upgrades, growth, and analytics for ~ $1.5MM - 2MM.

Why: Llama is among Aave's most active contributors. In the last year, Aave Grants DAO has awarded grants to Llama for projects including treasury management, protocol updates, DAO-to-DAO alliances, and analytics. Aave Grants suggested that Llama transition from short-term grants to a longer-term work scope financed by governance.

Takeaway: Llama has a good track record with Aave and delivering services to DAOs. This vote further establishes Llama within the ecosystem and provides Aave with quality services.

Updates on Prior Coverage

  • Temperature Check:  Voting with Commonwealth - Deferred with 176K AAVE

  • ARC: Re-enable ETH Borrowing - Approved with 503K AAVE

  • ARC: V3 Retroactive Funding


Sushi Swap

Implementation Vot: Sushi Head Chef Election

Created: September 26th, 2022

Passed: Not Yet,

Andy Forman - 1.3M Sushipowah
Kenneth Hurley - 505K Sushipowah
Jared Grey - 415K Sushipowah
Jared Cohe - 1.6K Sushipowah
Pauly Walton - 199 Sushipowah

What does it do: This proposal's expectation is to produce an implementation and hiring of SushiSwap’s headchef.

Why: Sushi’s head chef role leads development strategy for the protocol. For months, Sushi was looking for head chef candidates. After community calls, video submissions, formal descriptions, and thorough evaluations there are five candidates in the running. Each candidate brings a unique skill set that compliments the Sushi protocol. Read about the candidates here.

Takeaway: Sushi is moving forward with a community based democratic process to hire it’s new Head Chef.

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Implementation Vot: Gauntlet <> Compound Renewal

Created: September 18th, 2022

Passed: Yes,

1M COMP for

What does it do:  Renews Gauntlet’s 12-month engagement with Compound on continuous market risk management to maximize capital efficiency while minimizing risk.

Why: Gauntlet's Risk Management platform measures risk, optimizes parameters, runs economic stress tests, and calibrates parameters in real time. Gauntlet uses advanced simulation models with real market data to identify risk and opportunities for the protocol. 

Takeaway: Compound continues to take risk management serious by leveraging Gauntlets services that have established track record within the ecosystem.

Synthetix Banner

Proposal:Proposal for New Asset Request: Add Synth TRY

Created: September 27th, 2022

Passed: Yes,
0 SNX-SC For,
0 Against

What does it do: Adds a new long Turkish Lira (TRY) synth. 

Why: Crypto in Turkey has been taking off. In 2020 it was the fourth biggest cryptocurrency market and it was the largest in the Middle East last year. For context, there were over a million trades a day at the end of 2021 and 20% of Turkish residents use cryptocurrencies as of 2022. The thinking is that by adding the Turkish Lira synth it could further increase volume on Synthetix’s protocol by creating a bridge between the Turkish Lira and crypto.  

Takeaway: No votes have been made yet and the proposal only closes at the end of the year, so there is a lot of time to mull this one over. Whilst volatility of the Turkish Lira spiked higher than Bitcoin earlier this year it seems to have stabilised, and more options means more users and consequently volume. 

Updates on Prior Coverage

Updates on Prior Coverage


  • TVL in Lido Rises Before Ethereum’s Merge

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Updates on Prior Coverage

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