Laurence Smith

On-chain Vote: Risk Parameter Updates for Aave V2 ETH

Created: October 20^th, 2022

Passed: Yes
508K AAVE For,

What does it do: Updates parameters on six (6) Aave V2 assets: 

• Balancer
  • Pause Borrowing
• DPI
  • Pause Borrowing
• REN
  • Pause Borrowing
• BAT
  • Changes LT from 80% to 70%
  • Changes LTV from 75% to 65%
• CVX
  • Changes LT from 60% to 45%
  • Changes LTV from 45% to 35%
• ZRX
  • Changes LT from 75% to 65%
  • Changes LTV from 65% to 55%

Why: Under current market conditions, these parameter changes for Aave are precautionary measures that mitigate lending risk for users.

Takeaway: Aave continues to modify Risk Parameters to match market conditions and protocol demand. 

Proposal: Raising the target c-ratio to 400%

Created: October 26^th, 2022

Passed: Not yet but looking likely,
4 SNC-SC For,
0 Against

What does it do: Adjusts the target collateral ratio risk parameter for Ethereum and Optimism markets from 350% to 400%. 

Why: The tweak aims to optimise risk and capital efficiency on Synthetix, based on recommendations from Gauntlet, whose methodology you can find here. Modelling showed that an increase in the collateral ratio to this level decreased insolvencies by 28% and liquidations by 86%. 

Takeaway: SCCP-232 lowered the collateral ratio from 400% to 350% temporarily, and it was intended to return to 400% two weeks after SIP-252 was implemented (due 4th November). Due to the insolvency risk this change is being pushed for sooner. 

Proposal: Pay DAOs from inflation

Created: October 26^th, 2022

Passed: Not yet but looking likely,
2 SNX-SC For,
1 Against

What does it do: Changes the way the DAO’s monthly stipend is paid. If passed, it will be paid using inflation rather than from the Treasury Council’s assets. If passed, inflation payments will start from the first week of November. 

Why: The change hopes to increase self-sufficiency for the DAO, specifically with regards to the operating costs, and to help align stakeholders as the Treasury Council currently manages 47k SNX each month as DAO stipends. This gives the Treasury Council more influence relative to other councils and reduces protocol autonomy. 

Takeaway: Increased efficiency and decentralisation of influence is the order of the day.  

Proposal: [RCC-3] October 1, 2022 – October 31, 2022 Budget Request

Created: October 17^th, 2022

Passed: Yes,
64M LDO For,
11k Against

What does it do:  Provides funding for the Resourcing and Recompensation Committee (RCC) (details of the RCC and its responsibilities can be found here). This is the final period for RCC funding, with the committees being funded from a holistic perspective by the Core Contributors Provisional Budget going forward. Total funds to be provided are 50k LDO.

Why: The 50k LDO is larger than previous budgets. The budget covers overdue LDO compensation for September, in addition to October compensation, and the following:

• Higher marketing expenses than usual
• Audit and bug bounties from LEGO to RCC
• GCP and Github funding
• Operating expenses contingency funding

Takeaway: This is the final RCC budget request before Lido moves to a continuous funding model on November 1st 2022. 

• Sushiswap
• Uniswap
• Compound
• Maker

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Found this research useful? Connect with the ConsenSys Cryptoeconomic Research team at [email protected]

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Disclaimer: ConsenSys Software Inc. is not a registered or licensed advisor or broker. This report is for general informational purposes only.  It does not constitute or contain any individual investment advice and is made without any regard to the recipient’s objectives, financial situation, or means.  It is not an offer to buy or sell, or a solicitation of any offer to buy, any token or other investment, nor is it intended to be used for marketing purposes to anyone in any jurisdiction. ConsenSys does not intend for any person or entity to rely on any facts, opinions, or ideas, and any financial or economic commentary expressed in this report may not be relied upon. ConsenSys makes no representations as to the accuracy, completeness, or timeliness of the information or opinions in this report and, along with its employees, does not assume any responsibility for any loss to any person or entity that may result from any act or omission based upon this report. This report is subject to correction, completion, and amendment without notice; however, ConsenSys has no obligation to do so.

Ratification Poll: Endgame Prelaunch MIP Set

Created: October 10^th, 2022

Passed: Not yet but looking likely,
88K MKR for

What does it do:  Establishes community support for 2 MIPs and 6 sub-proposals.

1. MIP83: Recognized launch MetaDAO clusters
   • What does it do: This enables groups within the core units to begin preparations to restructure as MetaDAOs. 
   • Why: A MetaDAO is an operating function in the protocol that operates with a degree of autonomy. Referred to in the Endgame plan as a de-risked form of scaling the Decentralized Workforce.
2. MIP84: Activate Protocol-Owned Vault Emulation
   • What does it do: Activates the preliminary implementation of the Protocol-Owned Vault, using the Protocol-Owned Vault Emulation (POVE) approach which uses a non-standard configuration of the existing Maker Protocol to achieve the effects of a Protocol-Owned Vault.
   • Why: The Protocol-Owned Vault is a key element of the Endgame Plan that is described as a tool to achieve real resilience and decentralization by increasing the amount of Dai backed by staked ETH.
3. MIP1c4-SP1: Subproposal for changing the problem space
   • What does it do: The updated mandate is written with a new approach where the critical element of the mandate explicitly and directly impacts Facilitator Governance Powers provided upfront. 
   • Why: Provides clarity around when Maker Governance starts slowing down and not inviting proposals.
4. MIP4c2-SP27: MIP16 amendment subproposal
   • What does it do: Amends the MIP to become compatible with the Endgame.
   • Why: Prevents Signal Requests (non-standard weekly polls) from dominating the governance landscape.
5. MIP39c2-SP35:  Modifying risk core unit mandate – RISK-001
   • What does it do: The updated mandate is written with a new approach where the critical element of the mandate explicitly and directly impacts Facilitator Governance Powers.
   • Why: Clears up governance privileges the core unit facilitator will have regarding proposing non-standard weekly polls as defined in MIP16.
6. MIP39c2-SP36: Modifying strategic finance core unit mandate (SF-001)
   • What does it do: The updated mandate is written with a new approach where the critical element of the mandate explicitly and directly impacts Facilitator Governance Powers.
   • Why: Clears up governance privileges the core unit facilitator will have regarding proposing non-standard weekly polls as defined in MIP16.
7. MIP39c2-SP37: Modifying collateral engineering services core unit mandate
   • What does it do: The updated mandate is written with a new approach where the critical element of the mandate explicitly and directly impacts Facilitator Governance Powers.
   • Why: Clears up governance privileges the core unit facilitator will have regarding proposing non-standard weekly polls as defined in MIP16.

Takeaway: MakerDAO is moving forward with preparation for the Endgame plan. This MIP set is the first of many to introduce a more decentralized structure to the protocol.

Ratification Poll: Coinbase USDC Institutional Rewards

Created: October 10^th, 2022

Passed: Not yet but looking likely,
53K MKR for

What does it do: Outlines the terms for reward calculation and the process for payment to MakerDAO through 2022.

Why: MakerDAO requested that collateral assets be deployed that incorporate safety, cost structure, and flexibility. This includes Maker paying zero custody fees, reward schedules, and basis points collected on the arrangement.

Takeaway: Maker continues to work on MIP 81 with Coinbase to ensure community benefit.

Updates on Prior Coverage

• Ratification Poll: PPG – Open Market Committee Proposal Approved with 88K MKR
• Executive Proposal: Monetalis Clydesdale (RWA007-A) Onboarding, Funding Ambassador Program SPF, Core Unit MKR Streams Approved with 52K MRK

On-chain Vote: Aave Governance. Adjust Level 2 requirements (long-executor)

Created: October 7^th, 2022

Passed: Not yet but looking likely
2.77K AAVE For,

What does it do: Updates voting thresholds and requirements for Level 2 governance decisions. The changes include: 

• Quorum of Level 2 Executor changes from 20% to 6.5%
• Vote differential of Level 2 Executor changes from 15% to 6.5%
• Proposition power required for Level 2 proposal changes from 2% to 1.25%.
• A delay of 7200 blocks is added between proposal creation and vote start. 1 day considering 12 seconds/block.

Why: Level 2 decisions are considered critical to maintaining the operational safety of the protocol and include decisions on the AAVE token, safety module, and governance. Currently, Level 2 passing requirements take a material amount of time and total voting-eligible tokens to pass. Strict guidelines can limit protocol growth as development continues.

Takeaway: Even Aave companies have come forth in support, and it is widely understood that Level 2 governance requirements need to be updated. 

Updates on Prior Coverage

Updates on Prior Coverage

Updates on Prior Coverage

• Proposal: Increase BTC Futures Market Max Open Interest Approved with 7/7 SNX-SCT

• Sushiswap
• Uniswap
• Compound
• Synthetix
• Lido

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Found this research useful? Connect with the ConsenSys Cryptoeconomic Research team at [email protected]

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Disclaimer: ConsenSys Software Inc. is not a registered or licensed advisor or broker. This report is for general informational purposes only.  It does not constitute or contain any individual investment advice and is made without any regard to the recipient’s objectives, financial situation, or means.  It is not an offer to buy or sell, or a solicitation of any offer to buy, any token or other investment, nor is it intended to be used for marketing purposes to anyone in any jurisdiction. ConsenSys does not intend for any person or entity to rely on any facts, opinions, or ideas, and any financial or economic commentary expressed in this report may not be relied upon. ConsenSys makes no representations as to the accuracy, completeness, or timeliness of the information or opinions in this report and, along with its employees, does not assume any responsibility for any loss to any person or entity that may result from any act or omission based upon this report. This report is subject to correction, completion, and amendment without notice; however, ConsenSys has no obligation to do so.

Ratification Poll: PPG – Open Market Committee Proposal

Created: October 3^rd, 2022

Passed: Yes,
88K MKR For

What does it do: Updates the following:

1. Decrease the CRVV1ETHSTETH, a stability fee, from 2% to 1.5%.
2. Decrease the YFI, a maximum debt ceiling, from 25M DAI to 10M DAI.

Why: As outlined in the proposal, the changes to the parameters are to minimize risk and maximize capital efficiency. Explanations for each update are as follows:

1. Lowering stability fees to parity with the WSTETH-A vault type may stimulate demand and allow this vault to reach sustainable levels of exposure.
2. Considering that YFI has not seen significant minting in the past few months, this change is unlikely to limit organic vault usage.

Takeaway: The Maker Open Market Committee is appropriately managing risks under current market conditions.

Executive Proposal: Monetalis Clydesdale (RWA007-A) Onboarding, Funding Ambassador Program SPF, Core Unit MKR Streams and Transfers

Created: October 5^th, 2022

Passed: Yes,
81K MKR For

What does it do: The aggregated vote will execute: (1)Monetalis Clydesdale [MIP65] onboarding as a new vault type, (2) Core Units MKR Distribution and (3 ) the funding of a special purpose fund.

1. Monetalis Clydesdale [MIP65] 
   • Initial onboarding will have a debt ceiling of 1M DAI. A subsequent spell will increase the debt ceiling to 250M DAI if successful.
2. Core Units MKR Distribution

• Streams 787 MKR to the GovAlpha and StarkNet engineering core unit.

1. Funding of a Special Purpose Fund
   • This proposal will stream 81,000 DAI to the Ambassador Program special purpose fund.

Why:

1. Monetalis Clydesdale [MIP65] 
   • Execution of MIP65 with the following parameters:
     1. Stability fee: 0%.
     2. Debt ceiling: 1M DAI.
     3. Liquidation ratio: 100%.
2. Core Units MKR Distribution
   • Standard execution of previously approved budgets, salaries, and contributor pay.
      
3. Funding of a Special Purpose Fund
   • Based on the accepted Ambassador Program’s special purpose fund request, 81,000 DAI will be transferred to the program’s multi-sig.

Takeaway: Maker continues to finalize executive votes that streamline RWA arrangements and general operations.

Updates on Prior Coverage

Temperature Check: Chaos Labs <> Aave

Created: October 3^rd, 2022

Passed: Yes
169K AAVE For

What does it do: Proposes a 12-month work plan with Aave to focus on risk management and parameter recommendations for all v3 markets.

Why: Chaos Labs’ industry-leading simulation platform and environment are designed to mimic mainnet. This proposal intends to maximize the Aave protocol’s return on investment and give Chaos the chance to put its best foot forward in delivering long-term value to the community.

Takeaway: Chaos Labs’ is well known within the ecosystem and Aave is supporting the long-term viability of Aave V3 by engaging in simulation testing.

Updates on Prior Coverage

Temperature Check: Improve Governance and Voting Processes with Commonwealth

Created: September 20^th, 2022

Passed: Yes
100K Comp For

What does it do: Proposes the use of Commonwealth for community governance management and discussion.

Why: Commonwealth is a platform for DAOs to discuss and vote on proposals. The platform is already used in 900+ DAOs including dYdX and Axie. The platform boasts ease of use and organization as key differentiations. Integration with snapshot also allows for voting within the platform. The community is proposing the tool to increase governance efficiency. 

Takeaway: The Compound community is exploring how to improve the efficiency and organization of its governance processes.

Updates on Prior Coverage

Implementation Vote: Gauntlet <> Compound Renewal – Passed with 1M COMP

Proposal:Increase BTC Futures Market Max Open Interest

Created: October 5^th, 2022

Passed: Not yet but looking very likely,
7 SNX-SC For,
0 Against

What does it do: Increases the maxMarketValueUSD, the maximum amount of open interest allowed on each side of a market, on the BTC Futures market to 10M sUSD from 5M sUSD. 

Why: The motivation here is to increase open interest utilisation, which is currently at 90%.   

Takeaway: Full steam ahead with 10M sUSD.  

Updates on Prior Coverage

Proposal:Proposal to diversify LEGO budget for Q4 ’22 and moving further

Created: October 6^th, 2022

Passed: Yes,
2.5K LDO For,
518 Against

What does it do: LEGO (Lido Ecosystem Grants Organisation) is looking to make three key changes for Q4: (1) change the grants budget to 60% stablecoin and 40% LDO, (2) set the budget at $500K, and (3) assesses a LEGO members wallet before providing individual allowances and refills accordingly (so as not to exceed the allowance). 

Why: Analysis of historical data identified that 60% of grantees requested stablecoin payments. In response to their requests Lido are looking to give grantees what they want, which should have the added benefit of reducing selling pressure on LDO. 

Budget is set at $500K as that was the average historical spending over the past nine months. 

Individual allowance recalculations are designed to improve efficiency within council and nominee allowances. 

Takeaway: LEGO is getting more efficient and making their grants better suited for grantees – all good changes at first glance. 

Updates on Prior Coverage

Updates on Prior Coverage

Implementation Vote: Sushi Head Chef Election – Jared Grey with 11M SUSHIPOWAH 

• Sushiswap
• Uniswap

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Found this research useful? Connect with the ConsenSys Cryptoeconomic Research team at [email protected]

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Disclaimer: ConsenSys Software Inc. is not a registered or licensed advisor or broker. This report is for general informational purposes only.  It does not constitute or contain any individual investment advice and is made without any regard to the recipient’s objectives, financial situation, or means.  It is not an offer to buy or sell, or a solicitation of any offer to buy, any token or other investment, nor is it intended to be used for marketing purposes to anyone in any jurisdiction. ConsenSys does not intend for any person or entity to rely on any facts, opinions, or ideas, and any financial or economic commentary expressed in this report may not be relied upon. ConsenSys makes no representations as to the accuracy, completeness, or timeliness of the information or opinions in this report and, along with its employees, does not assume any responsibility for any loss to any person or entity that may result from any act or omission based upon this report. This report is subject to correction, completion, and amendment without notice; however, ConsenSys has no obligation to do so.

Ratification Poll: Update rETH Onboarding Parameters

Created: September 26^th, 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 19^th, 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

Temperature Check: Llama <> Aave

Created: September 23^th, 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

 News

Implementation Vot: Sushi Head Chef Election

Created: September 26^th, 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.

Implementation Vot: Gauntlet <> Compound Renewal

Created: September 18^th, 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.

Proposal:Proposal for New Asset Request: Add Synth TRY

Created: September 27^th, 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

 News

• Bitcoin.com: TVL in Lido Rises Before Ethereum’s Merge

Updates on Prior Coverage

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Found this research useful? Connect with the ConsenSys Cryptoeconomic Research team at [email protected]

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Disclaimer: ConsenSys Software Inc. is not a registered or licensed advisor or broker. This report is for general informational purposes only.  It does not constitute or contain any individual investment advice and is made without any regard to the recipient’s objectives, financial situation, or means.  It is not an offer to buy or sell, or a solicitation of any offer to buy, any token or other investment, nor is it intended to be used for marketing purposes to anyone in any jurisdiction. ConsenSys does not intend for any person or entity to rely on any facts, opinions, or ideas, and any financial or economic commentary expressed in this report may not be relied upon. ConsenSys makes no representations as to the accuracy, completeness, or timeliness of the information or opinions in this report and, along with its employees, does not assume any responsibility for any loss to any person or entity that may result from any act or omission based upon this report. This report is subject to correction, completion, and amendment without notice; however, ConsenSys has no obligation to do so.

Ratification Poll: Ratification Poll for Amend Measurement Period For Delegate Participation Metrics

Created: September 12^th, 2022

Passed: Not yet but looking likely,

59K MKR for

What does it do: This poll changes the tracking timeframe for recognised Delegate participation from a lifetime basis to a rolling 120-day window. 

Why: As outlined in the proposal, the scoring of participation metrics for recognised delegation is on a lifetime basis. This can disincentivise participation depending on the historic delegate participation rate. The 120-day rolling window for tracked participation can encourage increased participation amongst delegates.

Takeaway: Maker recognised delegation started in 2021, and the community is proactively working to improve the delegation process.

Ratification Poll:  Modify GovAlpha Core Unit MKR Budget

Created: September 12^th, 2022

Passed: Not yet,

25K MKR for 100% multiplier,
34K MKR for 150% multiplier,
0K MKR for 200% multiplier

What does it do: Proposes a Governance facilitator vested bonus based on the current pay structure. This is a ranked-choice poll and has the following five options.

1. 100% multiplier
2. 150% multiplier
3. 200% multiplier
4. Abstain
5. Reject

Why: Governance Facilitators are critical to the success of the Maker. As mentioned in the forum, the community is seeking to reward this core unit with a bonus that vests yearly. 

Takeaway: Maker continues to recognise the hard work of Governance Facilitators.

Ratification Poll: MakerDAO Delegates MIP Set

Created: September 12^th, 2022

Passed: Not looking likely,

22K MKR Against,
16K MKR For,
14K MKR Abstain

What does it do: establishes community support for 3 MIP proposals.

The following MIP set changes the compensation model for Maker Delegates. With a total possible increase of 400% compensation if all recognized delegate metrics are maxxed out.

1. MIP77
   • Outlines the fundamental role of delegates inside the Maker Protocol. In addition, it clarifies the essential differences between a Shadow Delegate and a Recognized Delegate.
2. MIP78
   • Outlines the method through which the Maker Protocol compensates Recognized Delegates with DAI. Governance Facilitators shall compute and deliver quarterly payments to Recognized Delegates beginning on the date of MIP approval. These payments will be covered by designated Executive Votes.
3. MIP79
   • Explains the calculation and execution of MKR vesting streams for Recognized Delegates.

Why: The MIP set aims to better align delegation incentives with Maker. The proposed increase of incentives include streams of MKR that are vested over a period of time. This can align the participation of delegates with the success of the protocol. Also, this can encourage larger groups of delegates with specialized knowledge to participate in governance.

Takeaway: Maker continues to define and work toward improving Governance delegation.

Executive Proposal: Core Unit Budget Streams, SPF Funding, HVBank Legal Update, MKR Stream Accounting Cleanup

Created: September 14^th, 2022

Passed: Yes,

91K MKR For

What does it do: The aggregated vote will execute: (1) Core Units DAI Distribution, (2) the funding of two special purpose fund multisig wallets, (3) MKR vesting stream clean-up, and (4) the HVBank legal agreement.

1. Core Unit DAI Distribution
   • This executive proposal will stream 3,004,859 DAI to the DAO Foundation and Oracle Core Units.
2. Funding of two special purpose fund multisig wallets
   • This proposal will stream 80,000 DAI to special purpose fund multisig addresses.
3. MKR vesting stream clean-up
   • As outlined in the forum, this vote will vest the remaining unused balance of the Growth Core Unit MKR stream to the Maker Pause Proxy contract.
4. Legal Agreement Update
   • Updates the IPFS Hash for the HVBank legal agreement.

Why:

1. Core Unit DAI Distribution
   • Per the ratification poll covered here, Maker is streaming updated DAI distributions to the DAI foundation and Oracle Core Units. Given recent market conditions, the Dai Foundation and Oracle Core Unit’s yearly budget streams are decreasing ~10%.
2. Funding of two special purpose fund multisig wallets
   • Special purposes funds are used to pay for third-party services contributing to Maker. The first special purpose fund will be provided 50,000 DAI for legal research regarding the greenlighted bIBTA application. The second special purpose fund will provide a 30,000 DAI reimbursement to the Strategic Core Unit team for advancing the cost of legal work on MIP65.
3. MKR vesting stream clean-up
   • The Growth Core Unit has claimed 738 MKR from the established 803 MKR stream, with no further MKR required. Current accounting practices do not accurately reflect the excess MKR. For accounting purposes, Maker will vest the remaining MKR from the precious stream in the Pause Proxy Contract. 
   • The advantage of this operation is that any front-ends that monitor MKR streams will be able to detect and accurately display the remaining MKR that cannot be claimed. This ensures that any accounting is as precise as possible.
4. Legal Agreement Update
   • The HVBank legal agreement change includes Updating the HVB Master Participation Agreement (MPA) as shown with indicated edits in red here.

Takeaway: Maker continues to propose executive votes that streamline RWA arrangements and general operations.

Updates on Prior Coverage

 News

• Decrypt:  Coinbase’s Proposal Expected to Earn MakerDAO $24M Annually
• Defiant: Christensen Calls For MakerDAO to Float Stablecoin
• Global Newswire:  HVbankParticipates in Commercial Loan with DAI Stable Coin

Temperature Check: Improve Governance and Voting Processes with Commonwealth

Created: September 20^th, 2022

Passed: Not looking likely,

14K AAVE For,
173K AAVE Against

What does it do: Proposes the use of Commonwealth for community governance management and discussion.

Why: Commonwealth is a platform for DAOs to discuss and vote on proposals. The platform is already used in 900+ DAOs including DYDX and Axie. The platform boasts ease of use and organization as key differentiations. Integration with snapshot also allows for voting within the platform. The community is proposing the tool to increase governance efficiency. 

Takeaway: The Aave community is exploring how to improve the efficiency and organization of its governance processes.

Proposal: Re-enable ETH Borrowing

Created: September 13^th, 2022

Passed: Not yet but looking likely,

500K AAVE For,

What does it do: This proposal re-enables ETH borrowing to revert the Aave market back to normal conditions.

Why: AIP-97 paused ETH borrowing on the Aave V2 Ethereum market to mitigate the risk of high utilisation ahead of the Ethereum Merge. Now that the Ethereum Merge has passed and markets are returning to normal, this enables all ETH-based borrowing.

Takeaway: The Aave community exercised proper risk management before the Ethereum merge and can now return to normal operating conditions.

Proposal: V3 Retroactive Funding

Created: September 9^th, 2022

Passed: Yes

670K AAVE for,

What does it do: Provides $16.28M in retroactive funding to Aave Companies for developing Aave Protocol V3.

Why:  Aave V3 added additional capabilities to the Aave Protocol based on community feedback, addressing shortcomings in V2. New features include High-Efficiency Mode and Isolation Mode that boosts capital efficiency and reduces procedure hazards. Thus, the proposal seeks to distribute $16.28 million retroactively for incurred labor and audit services.

Takeaway: The Aave community is rewarding core team members for the successful launch of Aave V3.

Updates on Prior Coverage

• Proposal: Risk Parameter Updates for Aave V2
• Proposal: Add LUSD to Aave V2
• ARC: Aave DAO Stance on Ethereum POW Fork

 News

• Defiant:  All The ETH On Aave Has Been Borrowed Ahead Of The Merge
• Coindesk: DeFi Giant Aave Stops Loaning Ether Ahead of the Merge

Proposal: Enable nominations during voting period

Created: September 20th, 2022

Passed: Not yet but looking likely, 
7 SNC-SC For, 
0 Against

What does it do: Changes the governnce model to allow users to nominate themselves for a council election during the voting period, rather than solely in the nomination period. 

Why: Legitimate candidates are missing out on the chance to run due to missing the nomination period. This reduces the candidate pool and cuts out potentially good participants. In turn, this could have an impact on Treasury Council activities, meta-governance votes conducted by the Spartan Council and other important decisions!  

Takeaway: Whilst the nomination periods were initially implemented due to concerns around spam applicatons, the introduction of the gas fee for nominations has drastically reduced this risk (as evidenced by no spamming incidents).

Proposal: Lower Target Collateralization Ratio 350% from 400% temporarily

Created: September 13^th, 2022

Passed: Yes,
7 SNC-SC For,
0 Against

What does it do: Decreases target collateralisation ratio for SNX stakers to 350% from 400$ for the 2 weeks after the initial round of escrow liquidations or if SNX price reaches $3.50 or higher. 

Why: There are three key motivations for this decision: (1) active collateralisation ratio on L2 is currently under 350%, (2) stakers will have to take on increased debt as a result of escrow liquidations and (3) SNX price has been weak of late. By lowering the collateralisation ratio it allows more stakers to continue to claim rewards, which will help them pay down debt and maintain their positions. Additionally, it helps reduce pressure on the sUSD peg caused by stakers buying additional sUSD on the market to pay their debt. 

Takeaway: Temporary measures to protect stakers on the platform and ensure that sUSD keeps its peg. 

Proposal: Addressing an Issue in SNX Inflation Released on 07/09/2022

Created: September 16^th, 2022

Passed: Yes,
6 SNX-SC For,
1 Against

What does it do: Temporarily cuts SNX issued as inflation on the L2, with it being redirected to the L1, due to over-issuance on the L2 that occurred at the end of the fee period on 07/09/2022.  

Why: The previous proposal for turning off the money printer has increased the possibility of SNX inflation going to zero. Spreading these emissions evenly will help give time to stakeholders to observe the effects of the inflation reduction. 

Takeaway: Synthetix is on its way to zero inflation, and by reducing L2 inflation it helps reach the 300,000,000 total supply in a fai way. 

Updates on Prior Coverage

 News

• CoinDesk: Synthetic Founder Proposes Capping Token Supply at 300M

Proposal: Should the Lido DAO add 2 shortlisted Solana operators

Created: September 9^th, 2022

Passed: Yes,
55M LDO For,
18k Against

What does it do: Add 2 of the 21 shortlisted Solana operators to the Solana Node Operator Set, as an output of the evaluation meeting on September 6^th.  The operators are H2O Nodes and Kukis-Global. 

Why: Lido is looking to diversify validators for the protocols they operate on.

Takeaway: Diversifying validators means greater decentralisation – if Lido are to remain the leading staking service then this is a crucial component of their value proposition and marketing. Interestingly, public perception seems to think Lido has predominantly US-based validators, but the data suggests only 10% is actually in the US.

Updates on Prior Coverage

• Proposal: Vote to engage a Head of Legal & General Counsel

 News

• Bitcoin.com: TVL in Lido Rises Before Ethereum’s Merge

Consensus Check: Deploy Uniswap V3 to zkSync

Created: September 13^th, 2022

Passed: Yes

15M UNI For

What does it do: Consensus check to deploy Uniswap V3 on zkSync. 

Why: Matter Labs leads the development of zkSync, an EVM-compatible layer2 zkRollup. Because zkSync is EVM-compatible, Ethereum Dapps can be deployed seamlessly on the network. Matter Labs intends to be the first to market with zkSync in October and the approval for V3 deployment is in anticipation of a successful mainnet launch.

Takeaway: Uniswap continues to work towards a multi-chain future, allowing the community to vet deployments with the top layer2 deployments. 

Temperature Check: Should we deploy Uniswap v3 on Aurora?

Created: September 12^th, 2022

Passed: Yes

19M UNI For

What does it do: Temperature check to deploy Uniswap V3 on Aurora.

Why: Aurora is the EVM-compatible solution deployed on the near blockchain.  Near is a layer 1 blockchain that intends to solve transaction scaling through sharding. The proposal includes receiving $5M for incentives and ensures bridge security using Near’s rainbow bridge.

Takeaway: Uniswap continues to work towards a multi-chain future, allowing the community to vet deployments with top EVM-compatible bloockchains. 

• Sushiswap
• Compound
• Rari Capital

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