Maker manages collateral makeup
And Synthetix launches a major upgrade
Messari’s Mainnet Panel:
On the Maker Docket
[Passed] Add USDC-B and TUSD as New Collateral Types - The “B” class for USDC is to make it easier for market makers to provide liquidity in extreme market volatility. It has a 50% stability fee to discourage long-term loans. TUSD, unfortunately, hit a snafu and is “disabled due to unannounced token upgrade” according to Mariano.
[Poll] Raise the ETH debt ceiling by 20 million to 140 million Dai - Dai remains trading above its peg, despite more and more ETH-backed loans. The debt ceiling increase would add downward pressure on the price of Dai but also leave it more susceptible to an ETH crash.
In the Maker forums and call
MIP 13 Declarations of Intent - a step to enable MakerDAO to officially signal the opinion of the DAO. It also would enable the DAO to spend Dai, so it’s being caught up in a larger discussion about bounties.
WBTC stability fee and liquidation - there was a lengthy debate in Maker’s weekly call about the risk of large WBTC liquidations. Given that WBTC loans are concentrated in a few vaults, they would all be liquidated at the same price, and it’s not clear the market would be able to source that much WBTC liquidity. Nexo and other large investors are capitalizing off of the interest rate mismatch. Maker isn’t concerned that someone is taking advantage of a market inefficiency, but MKR holders should be compensated for the added liquidation risk. Expect a WBTC stability fee raise in the next couple of weeks, but Dai still trading at a premium.
On the Synthetix Docket
synthetixDAO is funding a Balancer SNX/USDC liquidity incentive trial
SNX Liquidation mechanism (SIP-15) - a significant change to the protocol that should help maintain the sUSD peg. Last week, I discussed the forum discussion around this SIP.
Differential Fees (SIP-56) - another tool for Synthetix to manage the debt pool and mispriced synths. They could give fee discounts to trade pairs to encourage trading the same way they’re doing that to incentivize liquidity providers.
Permanent read-only proxy for the AddressResolver (SIP-57) - will help 3rd party developers interact with Synthetix contracts.
In the Synthetix forums
Changing incentive rewards for Synthetix liquidity programs, which many of the community
Rethinking frozen iSynths #151 - good discussion on GitHub, perhaps until Synthetix gets a better forum home.
Other Governing Things:
Part II: Cryptospheric Ecotechnics DAOs and the Global Economic Order [Pat Rawson/Curve Labs]
Towards New Risks [Hugh Karp/Nexus Mutual]
DeFi Liquidity Wars and Capital Efficiency [Chris Powers/Dose of DeFi]
Deep Dive: NecDAO [Formal Verification]
MetaCartel Treasury Proposal #2 + Beginning Moloch v2 migration
That’s it! Feedback appreciated. Just hit reply. Abbreviated version this week; lots going on. Hoping for more compassion and understanding. Black Lives Matter. Written in Brooklyn, but hoping for absentee voting for all in Tennessee.
Govern This is written by Chris Powers. Opinions expressed are my own. All content is for informational purposes and is not intended as investment advice.