MakerDAO Community, 7 Apr 2020

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From YouTube: MakerDAO Community Call April 7th, 2020: Chris Mooney Executive Vote Audit Tutorial

Description

Maker is a Decentralized Autonomous Organization(DAO) that manages the Maker Protocol on the Ethereum blockchain.

This video is a weekly community call that covers all Technical Milestones, Online Events, Partnerships, New Hires, Highlights from the Community, Real-Life Events, and more. Every now and then we even have a guest.

2020 Agenda Archive:
https://docs.google.com/document/d/1B2o4YylOF-neZS-OmvQLEqYboDRixoEEjxhgoS8XIHU/edit?usp=sharing

2019 Agenda Archive: https://docs.google.com/document/d/1X6gNR4PLN7uZhPeZdkXHoGwwexa16vs0Q_cGM__ZNG4/edit#

If you're curious to learn more about MakerDAO explore some of the resources below:

Awesome-MakerDAO Resource Repository: https://awesome.makerdao.com/
Technical Documentation: https://docs.makerdao.com/
Community Portal: https://community-development.makerdao.com/
Governance Forum: https://forum.makerdao.com/
Website: https://makerdao.com
Twitter: https://twitter.com/makerdao
Reddit: https://www.reddit.com/r/MakerDAO/
Chat: https://chat.makerdao.com/home

A

Hey everybody welcome to the April 7th maker Dow community call. My name is David. You trogon I work at the Maker Foundation and I do Community development's, which is a super kind of broad important topic for the MakerBot project, because you know, obviously it's a it's a protocol. That's meant to be run by the community and so I get the pleasure of facilitating these calls every week and if you're new, to the call, we do a couple of things.

A

So we usually go through the week at maker, Dow and sometimes the two weeks at maker Dow. If there's a especially a lot of stuff going on, but today we're just gonna do the week, and we also like to have interesting guests on and do like demos, walkthroughs, just educational stuff, that's valuable to you, guys, the community and gals.

A

So today we had we do have a special guest, one of our very own Christopher Mooney, who who actually came on board to the Maker Foundation, also through the community, just like just the just like a real maker og, and he is one of the sweetest guys at the foundation. But you know everybody at the foundation suite so he's gonna be walking us through an executive vote audit uh and actually I kind of I'm.

A

Just gonna give over the mic to him, and let him talk a bit more about it, because I know him and a few others at the foundation have been working really hard and mindfully about making it a lot more accessible to people that are non-technical, so Chris, if you are on the call I saw that you just rejoined, but I'm.

B

The propels the.

A

Terrell's right yeah.

B

I'm I'm a deeply worried that the normies and their Netflix are gonna knock me off line during.

A

Those well sorry all right, that's right, and- and so if you guys want the agenda in general here it is in the chat, so you guys can follow along, but for the first part of the call it's gonna be all Chris and we're going to walk through an executive vote audit. So yeah man, it's a mics hole. Yours all right, I'm,.

B

Gonna leave my my video off just an effort to maximize not failing here, let's say yeah.

B

And can you guys see my screen? Yes, yes,.

B

All right so I made this blog post a little while back that just tried to walk and in general some some people through well I guess: wasn't a blog post forum post trying to walk clicking into be through how one would audit a spell, and so I'm just gonna sort of walk through this process today and gave everyone a a hands-on idea of what it feels like to actually go through this process.

B

Obviously, the importance of this is that you don't want to just blindly vote on something promote it and have it be become a hat. If that thing has malicious code in it or a bug that would be really bad. You know there's lots of auditing that the engineers at the foundation do on these things, but you also shouldn't trust. The foundation right should trust your own eyes. So.

B

A

Quick really quickly so for the people that are like watching the call that might not be familiar with the terms like spell hat you like. Do you want to give? Maybe, like a super brief explanation of like how voting works? Yes,.

B

Yeah so in in normal parlance I guess you'd say a spell is I, guess a way of defining the types of configuration changes that that governance is going to make to the protocol. So it's like a so.

A

B

Contains yeah I mean so there's there's a proposal that we all vote on and as an executive that that has a bunch of of actual code changes that change configuration parameters in.

A

B

Protocol on maintenance, right and so I know I'm, maybe just digging myself a deeper hole with the jargon, but a spell in is basically just the way that we change. Let's say the stability fee or the debt ceiling or some other aspect or even possibly include a new contract into into the maker protocol. So it's obviously critically important that those be accurate, that they capture the will of governance and that they be, you know, bug free and don't have any malicious code. Otherwise complete protocol failure could ensue.

B

So so, basically what happens is when you get a proposal. We toss that thing into boo, something called the chief and we all vote on it there and when it Garner's enough votes, it can be lifted.

B

To the hat, so the chieftain's hat is what we call it, and that position in the chief has a special privilege in order to effect changes in the maker protocol.

B

So I hope that gives a general idea of how this works, but I think so so yeah and everyone feel free to interrupt me if, if there's a something of questions about as we go along, so I'm gonna go right down the list so that if someone were to pull this list up again or we publish this on the blog that there's a real at least of video, to sort of go along and help him you, you know handhold you through the process.

B

So first we need to find the link to the spell on either scan from the voting portal. So here's the voting portal that you're familiar with at least circa quarter to 2020 and you of two proposals, usually in our voting portal, one is is typically the thing that currently has the Hat that we were just talking about, which means this is the sort of governing proposal. It's the the thing that's either guarding or it was the last sort of state of the system, and we have this new proposal.

B

That's that has been put up and we want to be able to vote on this proposal. But how do we know you know? This is especially good because it just as a just multiple risk parameters adjust multiple risk parameters. So I, don't know these look the same right. So what's the difference? So if you go to this read more link, you will pull up the actual proposal, which has a couple sort of plain English descriptions of what this executive aute should do. So this thing says it should lower the u.s.

B

DC Stability fee from 16 percent to 12 percent. It should raise the size stability fee from seven and a half to eight and we should lower the side to dye migration debt ceiling to zero. This is a special one, because this is the first step in in shutting down single collateral die or at least I would say, Stefan the link between single collateral, multiple collateral by so so. This will be a bit novel to look at, but yeah.

B

Okay, so I know that's what it says, but the foundation is what put this up and I'm supposed to trust them. So how do I verify what this is actually going to do? Well, we've got this link to the source code over here, and so we can click that link and that will bring us to ether scan and this interface is confusing. You know probably harder to figure out.

B

But if you look here, we have a couple things on this contract, so we're looking at the page that either stand presents us for the contract. Each your scan is a block Explorer, so we can view various aspects of of someone's either a dress or a contract and contracts are special because they get this nice little contract tab, and so, if we we can see that there was a transaction here from maker employer that did a contract creation, so that was for four days and one hours ago.

B

So this contract was created four days and one hours yeah. If we click the contract link, we will be brought to this page with read: contract write, contract and code, and so this is the source code that we're going to go through verifying today, let's see so so in this step, we've now, you know, picked the ether scan link from the voting portal. We've gone to bad address on either scan. We've opened the spell by clicking the contract tab, and we can now see the contract code.

B

If you see byte code, you should cry foul in chat and encourage people not to vote on it. That's because you have no idea what that spell does so what that would look like. Is this see I'm here I'm on a contract and I've, you know, I can see the transactions I can see maker, deploy or even deployed this 284 days and 21 hours ago and maker to player failed to validate this particular contract.

B

So we don't know what this thing does and we absolutely should not be voting on anything that isn't completely transparent and viewable. So if you show up on this contracts, tab- and you see just a blob of byte code like this- you need to mention it in chat and try and encourage people not to vote on this thing or at least wait until it's been verified, but a month or two back. We we pushed spell and were struggling with the verification aspect of it.

B

There was a piece in there or that was causing it to be very difficult RFI, and we have this. You know code, blob up and I think that executive vote garnered about 22,000 MKR in support of it before we finally got it verified so 22,000 mkr voted for the thing, without actually knowing what it did so.

A

Chris, can you talk maybe like a little bit more about the verification process? Is it a direct like communications line that we have with ether scan directly or is it something that has to happen through the blockchain? Yes,.

B

So so what happens? Is we compile we compile this code and deploy it with a create contract, transaction or a contract creation, transaction and and that gets deployed out onto the blockchain, but it's just bytecode when it lands there and we don't there's no sort of interface to it, which is in our parlance.

B

Is you know what you'd call the ABI to to understand what functions are available on that contract and there's no sort of deep inspection beyond that of what those functions actually do, and so what we end up having to do is click on this verify and publish link, and this verify and publish brings us to a couple options. So we you know, do solidity single file.

B

You know, go down to, let's say the compiler that we're going to use pick a license and, and then we get brought to this screen and what the foundation can do, or anyone that constructs a spell like this or any contract at all.

B

Is they can paste the source code of the contract inside this box and and then swear that you're, not a robot and hit verify and publish, and this is sort of where the elegance of the you know of all of this works out, that source code will get compiled by ether scan on their servers and compared against the bytecode that landed on chain.

B

So then, there's no other sort of step that that needs to happen there. They know that the source code you provided is with that compiler version at that contract address is indeed the the same thing that you've actually deployed, and so once you've done that you will get this nice little check. Mark that says, contract source code verified exact match and thank you so much yeah cool yeah. So so and then so that's the first step right.

B

So if you don't have you only see that bytecode, it's a big red flag that you shouldn't be voting for that executive and that no one really should be voting for that executive. Unless, if someone comes along and verifies it I.

A

Question how long does it take for the contract to get verified like let's say a maker down, needs to do an emergency executive like as we've done like even just a couple of weeks ago? What's like typically the timeline, is it a very quick process or does it sometimes it's instant okay, I see Brian wrote in the chat rule yeah.

B

So it's it's reasonably instant, so long as there aren't other hang-ups in the verification process that one that we tried to verify that we were having difficult with difficulty with like a month ago that one I were just having a heck of a time with it. It took us a while to yeah.

A

B

Actually, an issue on either scan side like their database shut down or something and.

A

That's what it was.

B

Didn't pick up the transaction, so we had to redeploy nice.

A

Florist Chris I think.

B

Yeah yeah, you know I sorry I went through a bout of lag there and not school perilous times so yeah yeah, that's what it was. We we ended up verifying in other contracts hours later, once their verification system was back up and then ether scan was smart enough to realize that, because we've verified this other deployed contract, it could pull the verification off of that for the one that we had deployed so nice yeah. So now so now we're gonna scroll to the bottom.

B

So if you get to this contract tab, you can scroll to the bottom, there's a light level of sort of syntax highlighting. But this you know and I think this is enough to probably review a spell. You know we certainly do all the time but I've lifted so I've copied and pasted this spell code into remix just so that we have like a little bit better syntax, highlighting if anybody knows how to turn this into dark mode.

B

To let me know so so Oh the instructions are to scroll down to the bottom and the reason we do that is because at the bottom, that's typically where we have our spell. So this entire highlighted block is a contract. So we have a contract Dias spell here and note that this file can contain multiple contracts. So if contract spell action, contract that abstract so most of these abstracts are are just libraries that we use to reference other contracts that we have in the system and down at the bottom.

B

We will see a constructor, which is the thing that's called when the contract is initialized now for the for the most part, this constructor should stay the same and in fact, let's see if, if that's been true, no I bet, this expiration now has been added. But let's, let's see so and in our document it says yes ready this SIG action, bytes action yep. So, let's see if sig action, bytes a dress action, a little bit of assembly for the tag.

B

But now we have this thing called an expiration, and so we've added this new ability to expire spells that we've written on behalf of the foundation. So this means that they can't just sit in the chief and then be promoted at any given time.

B

This is useful because all the all the spells out there, at least that that we've constructed in the past, have had the ability to eventually garner enough votes and become the act of executive and of those were executed. They could change the state like right now. You could change the stability fee in single collateral by two twenty two and a half percent, because there's a spell sitting in the chief. That would do that for you, so this expiration will help us prevent that from happening, so this executive will only be good for 30 days.

B

We also added this new description, which is kind of nice. We can do this kind of cool thing. We went to the contract. Let's say we go back to the contract. We can go to read contract and you can actually see the description here says that this is the executive spell on this particular date. So.

B

So the first thing to check after you've looked at the constructor is that you want to look at the schedule and cast and they're, usually about the same, although they probably change just a little bit, because we added that expiration. So so here's what the schedule should look like, so we're going to require the CTA in this plot, and so, if we look, we have this require for the ETA, the CTA, the ETA assignment and the plot.

B

But we have this new thing, which is the require that's going to prevent the spell from being executed if it's past 30 days. So this is you know, you don't want to gloss over the constructor, because someone could put a malicious action in this constructor and you don't want to gloss over the schedule. In fact, you don't really want a glass over anything but you're. Getting an idea of you know sort of how to read this as you go through, so so in the schedule. This is the first thing.

B

That's going to be called after after that soviet Garner's enough MKR, it can be a function called lift can be called on. The chief, which is going to lift the proposal to the hat, and the first thing that's going to happen- is this schedule is going to be called after it's been lifted, and so that's going to check that now is less than expiration and it will be unless it's beyond the 30 days. Eta is zero, which it will be because ETA started out here.

B

We never assigned anything to it, so so it starts out as zero and we're gonna set ETA to now, plus the pause delay. So this is the the you guys know. This has the governance security module. This is the governance, security modules delay and so we're going to say. Okay, this thing is scheduled: ETA is now set beyond the delay and and then we're going to plot the action in the pause. So this is our way of sort of throwing this into this.

B

The spell queue so so there's a sort of delay, queue that can that exists and where we're throwing actions into that delay, queue, and so now this thing has to wait. Eta amount of time before it's going to be available for execution and and then below here, because single collateral die does not have a governance security module that is as a delay in front of it. Well, oh here we can just make any changes to single collateral die or any or any instant access modules right.

B

So we we have the circuit breaker that we've added recently, so any instant access modules could happen underneath this sort of comment here, for this spell there's none so we're not we're not making changes to Sinclair I'll die and is. Is that true, let's go back to so we're gonna raise the.

A

So we are making a change yeah.

B

Let's say we discovered a mistake, or you might have actually discovered us today.

A

Also make sure that you.

B

Right yeah exactly you should prank and make sure that I grab the right thing here. We might not have that if you change there, I grabbed the right doping. That process again check no check the check.

A

The spell it did, we make the change to the.

B

A

Saw 327 and over here it's saying it started: April, 2nd, but I'm, not sure if April 2nd is talking about when the contract was the poet or something let's say so. You've got this contract code, yeah I, think you're. Looking.

B

B

All right, so that's good though so that's paste this okay, so so here we are again same thing. You know, constructor looks the same. Description still exists, except now.

A

B

Have a single collateral die. This is why you audit stuff right. So so we get to raise the stability fee in single letter by from 8% to seven five and we're gonna use this sigh mom like which is a sort of a special contract that has the ability to change things in single collateral, die to set the fee to this single collateral by a percent fee, and this eight percent fee is over here and why don't we jump right into? How do we verify that?

B

That's eight, so in in this, we talk about the way that we determine what exactly we need to set the rate to for a per second for the rate accumulator. So this would be a rate of 9.5% and it produces this output here. All we do is just take this decimal point off and we toss this entire sorry, we tossed this entire thing in for nine and a half percent stability fee. So the way to validate the stability fees is we will. We will start out with this, so we've got this 8% fee.

B

That's what we're going to set same collateral die to we're. Gonna run this, you see command alright, so this is the same: BC command scaled 27, which is a rad we're going to give it an eight percent fee. Can you guys see that terminal over here.

A

B

If I hit enter on that, we get one points a little blah, so we can actually start to look like two four four zero, four one. So two four four zero four, once every 100 zeros, two four four zero, four one, and since this is actually kind of fun since we're in an editor here. This is a good reason not to do this in.

B

We can just put these right next to each other and let them visually line up so that we can see indeed that they match. So that's an 8% fee ticked every second, so we know that that this configuration line is going to be doing the correct thing: I'm not going to dig into what the sigh mom looks like in the set C.

B

These are well established contracts, but it is worth asking: are we pointed at the right contract right so is Simon, correct and so Simon we see here and that is 0xf to, and so, if we go back to this, there should be a discussion here about so so we're currently on 10.4 for the contracts, and if I open this up, this gives us all of the contracts for.

B

Csi, oh, do we not have a sigh mom in here and we must not so this one's gonna be trickier, yeah.

A

You'd have to go to the changelog for, for whatever the SED contracts are it.

B

Right so so I feel like. Maybe we should try and do that I, don't know if that's just on.

B

Let's see if these are here, I know of another way to do it, but I want to see if we can actually.

B

This is just gonna be for MCD yeah.

A

Yeah Brian posted a link to the github for the current side of Plymouth.

B

So what we can do in this spell is, we can actually take the sigh mom and we can paste this down and eat your scan and validate that it is the sigh mom.

B

So this isn't a perfect validation. Someone can you fake a contract? That's called the sigh mom.

B

Obviously it's pretty big but yeah. This looks like it has the right interfaces and the other aspect is it was. It has.

A

This operably yeah.

B

It's got a transaction history here wow. This is super over 28 days: eternal transactions, here's a contract creation a mere 841 days ago, by an address that actually we don't know if that's owned by the foundation, so yeah so maybe follow Brian's link to determine that the SCI mom is actually the SCI mom. We can put this into the changelog. That can be something that we had so that gets us through to the end of schedule, and so in theory, I should actually mention.

B

These comments are pretty nice too, because this gives a link to the poll that was used for.

B

Determining this, and if you load it, you can kind of validate hold stability fee.

A

And that's only for the short term unless, like we, we take those polls off of off of that URL.

A

It's like because, like, for example, like that's.

B

Right, executive.

A

Votes like they only lost yeah.

B

There's on yeah they're gonna yeah yeah, we should probably have.

A

B

A

B

So see so note that in the spells city changes so so this is sort of discussing the same thing that we just saw. Also the sigh mom here was the sigh mom that we had seen and so now the fun part and we're gonna we're gonna do this, so we're actually going to talk about what happens after that delay. So now that this schedule is done, what happens? Is we have to wait?

B

The governance delay, which, which was 24 hours, is now four hours and we get to this cast call, and so, when we call cast, we check that it hasn't been cast already. If it hasn't, then we sent done the true and we call the pause proxy or the governance delay. This is actually it's. You know it's slight bit different. So if you look at so, this will go to a different contract that has permissions. That's the thing that we actually add as permissions in all of the protocol, so what'll happen is it'll exec.

B

This action tag in ETA, which were some of the definitions up here and you see the action was defined by this new spell action.

B

Spell action is a contract and that contract is up here and so that contract is actually where the meat of the changes for multi collateral die happen, so so, once that is exact, it will execute this contract. So a few things to look for in this contract because of a quirk of how we code things. All of these need to be constant. If there's ever any variables in here, it could be probably at best a bug, but it could actually even be potentially malicious action, so these have to be constant.

B

I probably won't go into the details of that, but it has to do with the fact that when this execute is called, it's not executed in the context of this spell action. It's executed in the context of the Oz proxy that has permissions to make these changes, but but the constants are okay, so we might want validate some of these constants rights. Okay, it's is 438 2020 maker Dow executive spell so here's to that.

B

So just let's see so. Yes, that's the bat. The jug is there and the.

B

Sorry I'm not as good as copy and paste is Justin, so there's the pot so.

B

Then we look at this 12% rate and this is just an example of how you'd get it, but let's, let's go ahead and run our 12%, so it's eight. Let's make that 12.

A

Just go up here, paste.

B

That sure enough, that visually lines up so we've got a 12% rate and we've got a rad which is just one of the sort of largest defined as a WOD times array. But it's what you know. This is just a definition, because rads are how we store a bunch of things in the protocol and then to make things easier. We got sick of counting zeroes whenever we had to validate these things, so we define this thing called million, which is just 10 to the 6 power.

B

So in the executive we have to drip the pot, which is the DSR. So this just makes sure we in this one transaction. We get the sort of rate accumulators set up right at the right time, quantum, and then we have to drip every collateral type that we have there's one collateral type missing here, which is psy, because we have a side collateral type that we don't have to drip that because the collateral is set to have a 1% stability fee I mean a 0% stability fee.

B

So so, there's no no reason to drip it right now. We technically don't have to drip the pot but we're leaving it here for good housekeeping, and so your MCD modifications you. We assign us DC to the 12% rate, so we are to verify that MCD jug was correct right, so MCD jug was here and we file USD CA Duty is the term for our stability fees. It's the Daiwa knees for for that stability feet and we set it to the USD CV, which was filled percent great, so that all checks out.

B

We do the same thing for Sai. Oh, this is a different okay, so Sai line so line is our debt ceiling so easy enough? We set sideline to zero and we're going to set the side line to that zero. So Sai in this case is a proper collateral type like FA bat, a USD CA and we're setting it to zero and anyone who hasn't voted for this executive. Unless you are in staunch opposition to it, you you should, because we cannot shut down single collateral die unless we turn off this bridge.

B

So this makes it so the bridge will no longer work in that direction. I probably shouldn't advocate for weather and Hut. If you want to you want to you know, people should vote how they feel like they should vote, but if your ultimate goal is to shut down single collateral died, this is the first and necessary step.

B

We cannot shut it down and until this happens, so if you haven't voted vote, then your global debt ceiling is set to a hundred and thirteen million, and so this is just taking the 10 from Sai right and moving it down to one hundred and thirteen million right. So we're subtracting the 10 from the 123 down to a hundred and thirteen and line with an uppercase L here is the the entire global debt ceiling.

B

So this is the amount that so right now it's defined as the sort of the sum of all of the debt ceilings of collateral types, but in theory those two things ten diverge and be different. So you know in a hot emergency, we could actually set the global debt ceiling to zero and it would prevent all collateral types from working as well so and that's the end of the spell action. Everything above this is is just sort of the libraries for those sort of core system contracts and that that took me longer to go through.

B

Then I was kind of hoping for words about 10 minutes over where I was targeting. I did have another spell here. I was kind of planning on talking about, but I feel like I should just figure out what people on the call want to do. This is a DEFCON spell it's a basically a break glass in case of emergency spell that we've just recently constructed and deployed in case we see a Black, Swan style event again.

B

I can I can briefly talk about it, because this is its unveiling right now, if you want to be here about it, but yes,.

A

So Chris definitely let's, let's talk about the spell, but I also want to ask after you talk about the spell, can you give us a little bit more detail on what the foundation is planning or, if there's anything else, that's really going into making these like more auditable and more accessible. Just on a like a matter general level, yeah.

B

Why don't I talk about that? First, so so we started working a while back internally on something we're calling. The spell book, which is this was before MCD was, was really like. We saw how governance was going to interact with MCD, and so we started building these sort of this script that could on-the-fly.

B

You would just pass it for parameters and it would construct and well I use the terminology, because it's fun it would pull the spell out of the spell book put it in the cauldron mix the reagents together, which would be the parameters that you passed it.

B

It would compile that entire thing, deploy it to the chain and tuck it into the chief and archive it, and not only would it deploy the spell it would deploy a test that went along with it to make sure it did exactly what it was supposed to do, and the problem is that the construction of that spell book was sort of clumsy 2-z like it was.

B

You know it would do one thing at a time like set the debt ceiling for a particular collateral type, but it wouldn't do everything together and so we're hoping that we can take this spell book and instead of having it let's say, just change the duty for FAA that it would build effectively what you see here, that these sort of chunks would be templated and it would build one giant governance spell and right now, there's a sort of scripting interface to do that.

B

But we may even wrap a web interface around it so that you can kind of just choose what you want your values to be, and it would build this spell for you and it's really I think the verification process. Everything will remain the same, but yeah it should it should.

B

It would be really cool if we could hand this off to governance entirely so that the foundation didn't have to build these each week, and so that we're pretty excited about that. So that is definitely on a road map and part of the sort of self-sustaining maker now initiative. That room was talking about so nice yeah.

B

A

Just the heads of Chris before before you get started, I I do like try to try to aim to only spend. Maybe the next like five to eight minutes. I want to leave the last ten minutes of the call to kind of go over. What's been going on in governance for the week for people who haven't been listening to the calls and like yeah.

B

So I'll go really fast, then, so this is spell that we've just deployed it's intended to to be a break glass in case of emergency levels fell I, don't know if anyone's familiar with the DEFCON levels, but DEFCON one would be like nuclear war is either happening or imminent, and it has a couple.

B

Pre-Canned configuration is from from the risk team that we think would would help us in the case where we saw an approach to say you know low keeper, liquidity or network congestion again, and so the idea here is that this will perform a bunch of actions and I'm not going to go through the deep auditing of it. It will expire at a certain point, so this spell will only last until I think the first of July and it's already on main net now so I. That's this spell rate here. So it's already out there.

B

We just probably have to write up the sort of definition of it's and could toss it in the VOC portal as quickly as we as we can so in the schedule function everything else pretty boilerplate in the schedule function we get down to the first sort of cool thing that we can do, which is.

B

This is the way we trigger the liquidation circuit breaker. So we can instantly as soon as this thing is, it gets the Hat and scheduled we can trigger the liquidation circuit breaker to turn off liquidations for all of these collateral types. So f at a and us and.

A

To clarify e and.

B

Then you're good.

A

Breaker is not subject to the governance delay right, it's like coded to by absolutely.

B

A

B

Why yep that's exactly it yeah, so that's why it's happening in this section right. So this is the schedule everything else. We have to wait for the cast, but you can see that we we can instantly trigger the circuit breaker. As long as governance, you know, promotes this thing out: got it that's and, and- and normal cast is called four hours later at the current time mark, but this could be whatever the delay is.

B

So currently it's four hours and then this set of changes is going to run, let's say so we're going to go into the execute, so you have a 0 and a 50% rate, so we drip all of the stuff again. The first thing we do is set the DSR to zero. It dirty is right now, but what the heck we're going to do it again, just in case it's something else: we'll set the FAA stability fee that a stability fee to zero.

B

This one is interesting. We're going to set this USD a USD, see a stability fee to 50%, and the reasoning here is that that would enable it to be used by keepers. Only no one is gonna want to take out dye against us DC at a 50% rate, unless they're a keeper, that's like actively cycling, what's available to them back into the option system. So this basically says ok, u.s. DC is just a facility. That's gonna be used for or by the keepers. So.

A

It prices out the longer-term borrowers in preference exact order term emergency needs right, yeah. We.

B

Increase the the u.s. DC debt ceiling from 20 million to 40 million and and then we basically, this is a kind of interesting little trick. We we determined what the the debt ceilings for each collateral type are, and we then sort of sum those all together to set our global.

B

In fact, this might actually be the norm that we start doing soon. That way, we don't have nice, do the math in our head. um We then also change the the flips tau, which is the overall auction expiration time to 24 hours. This is not the duration of a bid session. This is how long the overall option can last so that so there is a sort of 6 hour session. This changes it so that it can be extended to 24 hours it used to be 3 days until recently we made them the same.

B

We did the same thing for batei and, and then this is a kind of cool thing. We don't want to activate liquidations on the US DC collateral type, because we don't want look to happen there. We're pretty solid, pretty sure that you SCC is gonna stay the same.

B

So this will then turn on liquidations again for both FA and bad a so that's it so it trips, the circuit breaker, makes a bunch of configuration, changes that should make it easier for keepers to recycle their capital and incentivize users to to sell their die and to print more die based on F and bat, and and then we extend the auctions just in case there's, network congestion and and then we re-enable the circuit breaker.

B

So we you know, we flip it back on, so that liquidations can happen and that's it one spell does all of that. Is there any questions. I'm gonna stop presenting.

A

And if you guys have any questions for for Chris about this whole process, even after the call feel free to reach out to him he's a he is wonderfully responsive in the maker chat.

B

A

B

A

You so much for coming on Chris I, think just watching you talk through the changes and even just highlight the pieces of code in your and your Explorer was just very helpful to me personally because I'm, not a you, know, I, don't code, but seeing you do, it has helped me have a bit more confidence in what's going on behind the scenes there.

A

So thank you, alright, I, barring any questions which doesn't seems like there are any I'm gonna share my screen it for just the last 10 minutes of the call and I'm gonna try to get through the rest of what I have in the agenda. If I don't get through anything in the agenda, the link is public. You guys can go through it yourselves.

A

You don't necessarily need me to present it, but for the last 10 minutes, I want to especially kind of pay pay mind to catching people up in what's been going on in governance, so let me present a window, so it's a little bit more entertaining than watching me speak directly.

A

So I could like also highlight stuff and kind of talk through it. So the TLDR for governance this week there's a few things the as Chris actually mentioned so step. One of SCD shutdown is currently being voted on in the executive, which is the closing of the side, two dynamic migration contract so and then there's also to stability.

A

Few changes, so this is important because it actually closes the ability for people to convert sigh to die one for one, but not the other way around, and- and this is a big important thing for mkr voters, because after the global settlement or emergency shutdown of single collateral die, sigh actually becomes a claim on underlying eath and no longer functions as a stable coin. It functions as eath exposure so from the perspective of the maker protocol.

A

If single collateral die shuts down and we still have psy in our system, it introduces this kind of volatility in the quote: unquote: balance sheet of the protocol so like yeah, all all of that is to say this is a very important vote. Go read about it, there's also a link to forum thread.

A

If you want even more details about it, so check it out, also very important to mention roon presented the self-sustaining maker Dow initiative on last thursday's risk and governance call I highly recommend you guys either read the summary that we produce or actually watch his presentation.

A

It was really well presented and the gist of it, which I'll get into in a bit is that it's kind of three-pronged. The vision for the protocol is to have an entire ecosystem of elected paid contributors of special domain teams that handle like specific functions like the risk, seemed, for example, in the Oracle team that were ratified of late last year and then thirdly, vote delegates, so MKR voters being able to actually give their voting power to either public people or people.

A

They personally trust to make decisions on their behalf in mkr voting by the way. So, if anybody sees anything in the chat, that's worth stopping and mentioning definitely interrupt me because I'm gonna kind of go through this, but yes so feel free to hop on the mic.

A

If there's something that's worth highlighting from the track all right and then the third point from the TLDR is that the governance poll- and this is like slightly concerning- but nevertheless the governance pulled that ran for a week about single collateral, die shutdown was concluded, and the question was whether the system should be shut down on April 24th, which is in a mirror, I think 17 days, and it concluded yes with with something like like 6633 for versus against. That's like percent right. So there is a.

A

There was a significant amount of yeses, but also like a significant amount of nose and and I kind of want to get into a little bit about why the nose were there and yeah just what you should think about. So it has to do with this first step thing that I talked about of sigh actually still being in existence in the maker Dow protocol. So 17 days is like a very short period of time and yeah. That's that's about it!

A

So there there there's a bit of a bit of like contention around this vote, but it's still concluded. Yes. So, if you're at MKR voter keep your eyes glued to this, because this is going to be kind of the defining next step of what's going to be going on for the month of April, so yeah, here's kind of the active votes that are currently happening, I already mentioned and actually Chris audited.

A

This vote so we're lowering the USD, see stability fee from 16 to 12, we're raising the size stability fee from seven and a half to eight and we're lowering the side dye migration debt ceiling to zero I'm, not going to talk much more about this because we've already given it quite a bit of airtime.

A

The usual governance polls are up barring the DSR spread, because that happens bi-weekly now, instead of weekly. Nevertheless, if you're I'm Kara voter go vote, this is gonna inform the next executive vote. That's going to be coming up which which, if, if all as well it's it, should be going up on Friday the 10th.

A

There are two special governance polls that aren't part of kind of this weekly bi-weekly cadence, regular polls. But one is a result of an initiative in the community to ranked to add a ir v ranked choice, voting to governance polls and the idea for this is is just to give a healthier kind of signal for what the executive vote should hold. So, if there's a lot of contention within like let's say a stability fee vote, it's going to be reflected in the final number. That's actually chosen like it's, it's a and also like.

A

If your first choice doesn't get chosen, yeah I actually should probably PETA a little bit differences, so I could explain it better, but nevertheless, there's a forum post in here that's linked in the proposal. I highly recommend you guys read it before you vote yes or no in general, there's probably more pros and cons, but I'll. Let you guys decide that for yourself and typos and then the other special governance poll is the vault compensation poll.

A

So so following March 12th black Thursday's events with the whole zero bid, auctions and people losing collateral that they didn't expect to lose. So so there was a huge cry: public outcry for kind of compensating the vault holders who you know I'm, unjustly and so right now this is going to uphold to MKR voters whether there should be some form of compensation to victims of the zero bid exploit and at the moment, as of like an hour or two ago, there's about 56,000 MKR for yes and about 8,000 mkr for no uh and fun fact.

A

This poll was drafted and set up by the communities. So that's pretty awesome. It's actually done on the forum thread and it's linked to a github that a bunch of people participated in, but nevertheless this is kind of the first step in the in the whole question of compensating these people and I'm actually gonna really quickly, just read off the proposal so that I don't mix up the the details. But if it's yes, the next vote is gonna, be whether they should be reimbursed in eath or in died uh and also yes.

A

So let me just kind of go here. Yes, so if this poll is decided as no then no further yeah effort needs to be spent on a more exact estimate of all holder losses. If this poll has decided yes, then another on chained poll will be held to decide whether the compensation amount to be determined will be denominated and died or the collateral asset that was liquidated.

A

Yeah. There's there's a bit more details here. I'll leave it to you guys to read it, but the general, the general consensus in the community, roughly from what I've been hearing, is that the idea is leaning towards yes, but there still has to be a ton of a ton of analysis done to determine the amount, because there's a lot of nuance right, there's a lot of nuance so yeah leaving leaving that to you guys to read.

A

But this is a good first step for the maker token holder community to decide on this like important public issue. Yes, so moving forward yeah, we produce a weekly summary of the third risking governance call, it's filled with all the slides video anchors, pretty much everything you can and I want to give like us. A huge special shout out to to the community contributors that make this possible so Tim black Igor Tesla, Quan Julian, who actually helped out on his first summary.

A

This is the first one he helped out with this time and and so yeah. These summaries actually want to speak about them. Just very briefly, we're hoping, obviously, to make this kind of standardized and also decentralize the production of these.

A

The risk and governance calls contain tons of interesting insights from people tons of interesting information and, and so it's important to kind of document it, instead of just having it as a call, because obviously, calls are very time-consuming to watch, even if you're watching them at twice speed right and so these these are very important and we actually very recently no I, don't actually have it, but we very recently also launched a governance and risk summary guide, so it outlines the format it outlines all the kind of formatting rules and right now we're looking for more contributors to actually help produce these summaries.

A

So if you're interested reach out to me and I'd love to get you guys on board and obviously it's it's not like volunteer work, I, it's it's compensated work. We have died, grants available for people who are interested in doing these and the best people to do these are people who are well informed about the maker protocol, who are able to kind of check for semantic accuracy and in general, who who probably already watched the governance calls.

A

So if, if you're interested in that hit me up governance at a glance, if you guys don't know already, governance at a glance is, is a community produced thread? It's a long-running thread and it's updated by long for wisdom every week and it contains kind of like all the current events that are going on in the forums. But I wanted to highlight two particular threads that are super interesting. So there is a community driven governance messaging project plan. So it's it's a kind of messy name, but the idea is the communities coming together to discuss.

A

How does the community voice the Dow's opinion on something or the community's opinion on something in a cohesive way, because right now, the maker foundation handles much of the communications in terms of PR, but of course the maker foundation isn't meant to be doing that for the long term.

A

Eventually, that will have to have its own voice, and this is kind of a step one for for specking that out and what that looks like and- and it ties into the this whole idea that represented on Thursday of elected paid contributors and doubt teams, because we very well might see a PR or communications like domain team, and this is kind of the first steps towards that uh and I know we're right at about the hour.

A

So I'm gonna I'm gonna just talk about the nips very briefly, but then I will end the call a little bit early and uh and I could cover the stuff that happened this week in next week's governance called oh yeah.

A

The second thread is a governance initiative being done by Richard color Lopez called the defy consortium on emergency shutdown, and this is an effort to get not just maker Dow maker voters maker community members to better define the details around emergency shutdown, but also to get people in the greater defy space who would be affected by the emergency shut down to come and be part of a working group. Not don't worry about about it, Chris, that's totally fine.

A

So if you are working for a defy project that uses die or intends to use die- or you know, or anything definitely hook up with rich on this thread I, it is just the beginnings of it. So I don't think, there's any meetings or any like actual like serious work produced, but that's the intention of it.

A

The intention is to understand the implications of an emergency shutdown to better define the appropriate time when emergency shutdown should actually happen and to just outline all of the stakeholders involved and to just get a very clear view of this big game, theoretical red button, that we call emergency shutdown right and yeah, and then the last thing that I'm gonna mention and you can- you can definitely check out this blog post and and The Associated forum threads, but the maker foundation just laid a huge bomb down on the community in a great way.

A

We gave the community kind of the first 13 MIT's and if you don't know what a myth is, it's a it's called a maker Improvement proposal, and so this is an attempt to better standardize governance at maker Dow, and so these are not ratified by governments. Yet they are the the first version for the community to look at that establishes this kind of framework for governance that helps everybody be on more of the same page and to get things done hopefully more efficiently, so so, yeah and and yeah, and everything else.

A

I guess I will actually leave for next week because we are at about an hour and four and I know you guys all have stuff to do with your days. So without further ado, I'm gonna just open it up to you guys. If you have any quick questions before we end the call, but otherwise thank you guys for joining I hope, I hope this was educational to you.

A

I hope, I, hope you definitely found value in this call and if you have any feedback on the call reach out to me, if you have any cool ideas for for guests reach out to me for formats reach out to me yeah. So thank you guys for joining thanks, David, a problem Katie all right, I'm hitting stop recording. Now.