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Description
Know your MIP KYM#08: MIP50: Direct Deposit Module
For the 8th episode of Know Your MIP we’re be talking about MIP50: Direct Deposit Module 5 with Stani (@ethwarrior) and ours truly Sam MacPherson (@hexonaut).
Agenda: https://forum.makerdao.com/t/know-your-mip-kym-08-mip50-direct-deposit-module-monday-april-26th-17-00-utc/7566
Governance Forum:
https://forum.makerdao.com/
Disclaimer: These calls and the summaries are produced and hosted by MakerDAO community members. Content produced by the community are not the statements or views of the Maker Foundation.
A
Okay,
hi,
everyone
welcome
to
know
your
mip
number
eight.
Today
we're
going
to
be
discussing
nip
number
50,
which
is
the
well
this
direct
deposit
module.
So
it's
an
integration
with
other
and
I'm
here
joined
with
our
sam
mcpherson
at
hexanote,
in
our
forums
and
stanley
from
from
avi.
So
thanks
a
lot
for
for
joining
us
danny.
A
B
Yeah,
so
definitely
so
so
practically
obvi
is
a
vertical
where
you
can
deposit
assets,
cryptographic,
assets
and
and
on
ethereum
and
and
pretty
much
earn
yield
on
those
assets.
And
of
course
those
has
become
also
a
collateral,
and
you
can
practically
borrow
so
where
maker,
for
example,
is
a
is
a
kind
of
like
a
protocol
facility
where
you
could
actually
self
lend
to
yourselves
create,
create
an
issue
die.
Stablecoin
ava
is
more
of
a
secular
market.
B
B
B
We
have
formal
verification
done
by
sartora
and
we
recently
also
received
a
report
from
gauntlet
about
actually
the
the
market
risk
of
the
other
protocol,
liquidity
risk
and
also
the
so-called
safety
module,
which
we
will
probably
cover
a
bit
during
the
session
and
and
how.
Let's
say
if
the
defy
space
or
general
cryptocurrency
space
decreases.
Assets
decreases
in
value.
Liquidity
decreases
the
value
how
the
protocol
itself
will
be
solvent
in
those
cases
and
how
the
collaterals
itself
will
will
sustain
their
and
liquidations
and
how
they
function.
B
B
Actually,
in
the
next
hour,
the
the
iap
starts
in
in
terms
of
like
on-chain
execution,
which
means
there
will
be
liquidity
mining
also
in
the
other
protocol,
which
then
actually
distributes
more
governance
power
to
the
users
of
ave
and
by
this
particular
mip
that
we
have
here.
It
also
means
that
the
maker
dial
community
becomes
part
of
the
other
stakeholders
and
and
have
governance
power,
and
that's
a
kind
of
like
a
separate
topic
issue
we
can
discuss
also
in
in
the
future
and
so
yeah.
B
B
Definitely
so
8,
I
is,
is
very
fascinating
function
in
in
the
other
protocol.
So
when
you
deposit
into
ave,
let's
say
die
you
get
in
return
a
die.
So
aidai
is
a
claim
on
your
deposit
into
the
protocol
and
it's
one-on-one
changeable
to
to
what
you
actually
the
deposited
and
the
interest
rate.
That
is
credited.
So
we
innovated
a
year
ago
the
a
tokens
in
a
way
that
they
change
their
balance.
Algorithmically.
B
So
the
first
year
is
actually
the
globalization.
The
over
catalyzation
of
the
whole
of
a
protocol
system
so
in
in
typically
the
overclockization
in
in
learning
protocols
might
be
two
to
three
or
or
or
four,
depending,
of
course,
on
the
on
the
markets
and
and
and
the
current
collateral
compositions,
so
that
we,
which
basically
means
that,
if
those
collaterals
decreases
of
value
similar
liquidation
system
is
in
place
such
as
in
maker,
where
those
unhealthy
positions
are
liquidated
and
and
swapped
by
the
open
liquidator
network.
B
And
then
there
is
a
next
year
of
of
kind
of
a
backing
where
there
is
a
safety
module
which
practically
means
that
there
is
a
roughly
one
billion
port
of
above
one
billion
worth
of
ave
in
so-called
safety
module,
which
is
used
to
cover
any
kind
of
a
deficit
in
the
protocol.
That
could
be.
For
example,
a
smart
contract
exploits
failed
degradation
or
any
kind
of
a
scenario
where
the
protocol
itself
is
left
into
deficit,
and
when
that
happens,
there
is
so-called
slashing
event
where
part
of
that
safety
module
funds.
B
Other
tokens
are
used
to
to
slash
and
compensate
the
the
protocol
exposure
and
making
the
protocol
whole
again
and,
and
then
we
have
the
last
step,
which
is
the
so-called
minting
protocol
recovery
issuance,
which
is
inspired
by
the
maker
dial
system,
where
mkr
was
minted
to
to
to
basically
cover
the
black
thursday
cost
liquidations
last
year.
So
it's
kind
of
a
multi-step
backing
system.
B
What
we
have
in
in
ada
in
the
aa
tokens,
and
the
idea
here
has
been
actually
that
when
we
built
the
system,
we
tried
to
take
as
much
as
inspiration
of
what
we
already
had
and
the
older
protocols
mainly
make
it
out
and
and
maker
downs
model
of
getting
the
protocols
back
into
the
solvency
and
and
that's
pretty
much
what
what?
What
what
is
backing
8i
and
and
how
it
works.
C
C
D
Yeah
sure
so
I'm
sam
I'm
with
the
maker
smart
contracts
team
I
joined
back
in
september.
I
believe
it
was
yeah
and
so
I've
been
working
in
kind
of
a
unique
position
because
I'm
working
under
the
dow,
as
opposed
to
under
the
foundation,
so
I've
been
able
to
do
some
more
unique
stuff,
such
as
the
psm
and
whatnot.
D
So
this
idea
was
proposed
to
me
by
stanley
a
couple
weeks
ago
and
I
just
thought
it
was
a
great
idea.
So
I
decided
to
build
out
sort
of
a
proof
of
concept,
and
you
know
lo
and
behold,
it
wasn't
actually
too
difficult
to
build
this
thing
out
and
we
can
kind
of
do
it
in
a
nice
permissionless
way
by
adding
a
special
kind
of
vault
onto
the
maker
protocol,
which
will
just
deposit
newly
minted
dye
against
adi
into
the
ave
protocol
and
sort
of
stop
up
any
extra
demand.
A
D
Sure
I
can
give
like
a
technical,
quick
overview
and
then
maybe
stanley
you
want
to
like
sort
of
go
over
the
implications
of
that
so
yeah.
The
module
that
I
built
out
50
will
essentially
look
at
whatever
the
variable
borrow
rate
on
ave
is
for
dye,
and
if
it's
above
the
set
threshold,
it
will
mint
die
against
the
just
returned
a
die
in
order
to
lower
that
variable,
borrow
rate
down
to
our
desired
rate.
D
So
let's
say
we
want
to
target
sort
of
an
eight
percent
variable,
borrow
rate
on
ave
and
currently
it's
at
a
ten
percent
there's
an
excess
of
demand
for
borrowing.
So
the
module
would
look
at
that
and
calculate
how
much
more
dye
needs
to
go
into
the
ave
market
in
order
to
hit
that
eight
percent
mark,
and
it
would
just
mint
whatever
that
difference
is
against
the
a
die
and
the
nice
part
is
because
the
a
die
is
returned.
D
A
D
Yeah,
it's
a
little
bit
weird,
so
normally
yeah,
you
think
of
a
collateral,
vault
and
you're,
like
you
put
the
collateral
in
and
then
you
mint
some
dye
and
do
whatever
you
want
with
it,
this
one's
a
little
reverse,
but
because
it
happens
all
in
one
transaction,
it
doesn't
really
matter.
So
you
are
minting
the
die,
then
getting
the
a
die
in
return
and
then
backing
that
newly
minted
die
with
it.
It's
it's
sort
of
a
technical
thing.
B
And
yeah,
and
what's
interesting
here,
is
actually
kind
of
in
in
one
way.
If
you
think
about
the
the
vision.
Is
that
because
there's
the
the
minting
capability
that
the
maker
does
system
has
over
over
die,
it
actually
kind
of
creates
this
direct
deposit
seam
into
the
landing
protocols,
essentially
meaning
that
naked
out
kind
of
becomes
the
the
central
bank
like
of
issuance
facility.
B
So
it's
a
practically
a
way
to
use
of
as
a
distribu
distribution
general
for
die
for
cross
chain
lending
and
borrowing
markets.
And
that
gives
very
interesting
kind
of
like
a
competitive
advantage
to
to
other
stable
coins,
especially
those
stable
coins
and
those
lending
protocols
that
are
actually
now
looking
into
creating
some
sort
of
cross
chain,
interoperability
and
liquidity.
B
And,
interestingly,
as
ava
is
a
protocol,
it
means
that
we
have
multiple
markets,
also
in
player
one.
So
currently
we
have
the
main
market
where
there
is
the
main
collateral
assets
there.
We
recently
created
a
new
market
amm
market,
where
you
can
use
your
uni-swap
liquidity
provider,
tokens
and
balancer
lp
tokens
and
and
in
the
future,
sushi
and
and
curve
tokens
little
cases
a
collateral
and
get
more
liquidity,
so
actually
in
the
future.
B
This
module
in
particularly
sets
sets
this
kind
of
like
a,
I
would
say,
gateway
not
just
into
the
other
market
but
other
other
markets
and
across
d5
to
provide
liquidity
on
on
dye,
which
gives
very
interesting
competitive
advantage
to
to
other
stable
coins.
So
that's
that's
kind
of
like
a
vision
for
us
and
for
ave.
It
means
that
other
could
get
as
a
community.
B
C
B
A
Yeah,
it
makes
sense
it's
it's
kind
of
easy
to
see
the
synergies.
What
I'm
trying
to
wrap
my
head
around
this.
If
I,
the
ada,
is
backing
the
die
and
I
is
backing
the
a
die
basically
we're
trusting
that
both
protocols
won't
fail.
So
I'm
wondering
how
that
would
have
an
impact
if
both
start
going
down,
but
maybe
it's
a
more
of
a
philosophical
question
at
this
point.
E
D
E
F
D
Right
so
for
winding
up
it's
it's
immediate,
you
can.
I
mean
as
long
as
you're
under
the
debt
ceiling
limit.
You
can
just
call
it
every
block
if
you
want
to,
and
it
will
just
continuously
set
that
exact
rate
I
mean
there
are
so
on
the
way
down.
There
are
limitations.
There
needs
to
be
liquidity
in
the
pool,
so
we
have
when
we
pull
it.
D
A
Regarding
well
going
back
to
your
example,
maybe
some
in
the
in
the
case
it
was,
I
think,
eight
percent
for
the
borrow
rate,
so
maybe
the
the
deposit
rates
it's
at
five
percent.
I
don't
know,
I
don't
know
what
what
a
good
guess
is,
but
in
this
in
this
case,
would
make
her
be
getting
this
five
percent.
C
G
D
Yeah,
so
that
would
that
would
be
constrained
by
the
amount
of
collateral
people
are
putting
in
ave.
Essentially,
if
we
just
set
it
to
like
zero
or
one
or
something
like
sort
of
take
as
much
liquidity
as
you
want.
Basically,
they
would
just
be
kind
of
like
maker.
They
would
be
able
to
just
like
as
much
borrowing
as
you
want
just
keep
throwing
collateral
and
you
can
borrow
as
much
dye
as
you
want.
That's
how
maker
works
basically,.
G
B
F
D
A
D
A
E
D
E
D
Yeah,
so
there
is
likely
going
to
be
some
sort
of
back
end
controller.
That's
sort
of
periodically
calling
this
like
a
keeper,
basically
and
as
part
of
the
unwinding
process,
which
will
just
probably
naturally
occur
every
now,
and
then
it
will
actually
pull
out
the
fees
as
well.
So
just
naturally
we're
just
gonna
have
a
trickle
of
fees
coming
in
likely.
D
A
B
So
the
other
risk
framework.
We
have
different
kinds
of
loan
to
value
ratios
depending
on
the
assets
and
also
we
have
this
kind
of
a
buffer
before
you
can
before
you
get
actually
that
you
can
get
liquidated
before
you
reach
your
whole
loan
to
value
ratio.
So
the
idea
is
that
even
there
is
a
wide
range
of
different
kinds
of
assets
in
in
the
other
protocol.
B
The
risk
parameters
are
fairly
conservative
compared
to
the
rest
of
the
dfi,
even
compared
to
protocols
that
have
less
assets
such
as
compound
at
the
moment-
and
this
has
been
very
good
thing
because
it
allows
us
to
actually
have
higher
collateralization
ratios
across
the
the
whole
protocol
and
and
also
kind
of
beyond
that
it
protects
the
borrowers.
So
the
the
borrowers
cannot
take
the
excessive
leverage
in
the
of
protocol,
which
means
that
there
is
less
collateral
calls
and
better
use
experience
as
well
and
actually
ava
has
it.
B
It
differentiates,
for
example,
from
what
else
is
in
the
market,
because
you
don't
always
need
to
liquidate
yourself,
but
you
can
actually
swap
your
collateral
assets
from
whatever
you
have
into
a
stable
asset
or
to
something
that
is
less
volatile
over
a
period
of
time.
So
this
is
the
collateral
swap
and
deposit.
Stop
functionality
that
the
the
protocol
itself
has
safety.
B
Module
has
been
quite
funded
at
the
moment,
so
it's
been
over
one
billion
worth
of
ave
currently
and
and
if
there
is
some
sort
of
failure
in
the
protocol
itself,
30
can
be
slashed
from
the
from
the
safety
module
to
cover
that
deficit
and,
of
course,
it's
constant.
So
there
might
be,
even
if
there
is
another
kind
of
a
failure.
C
B
B
B
Maybe
that's
it
yeah!
That's
that's
an
interesting
one
for
us.
We
kind
of
like
we
try
not
to
have
like
issuance
at
all
because
for
us,
like
ave,
seems
like
the
opposite
positions,
very
well
as
as
more
of
a
like
a
marketplace
for
let's
say
stable
coins,
liquidity
and
and
then
being
able
to
to
cross-bridge
the
liquidity
between
different
cross-chain
solutions.
B
But
I
would
say
that
the
euro,
stable,
stable
coin
of
dye
could
be
something
that
the
maker
dow
can
indeed
should
at
some
point
start
to
progress
with,
because
that's
definitely
like
an
interesting
involvement
and,
of
course,
like
now,
there's
just
fairly
more
demand
on
on
us
dollars.
So
I
guess
that's
not
the
the
highest
priority,
but
still
very
interesting
ones.
E
D
Yeah,
so
this
sort
of
design
can
definitely
work
in
a
generalized
way,
so
yeah
we
could
certainly
use
it
for
other
protocols,
but
like
something
to
keep
in
mind
is
like
ave,
is
beyond
just
sort
of
giving
us
extra
sort
of
route
to
mint
dye.
Obvious
sort
of
marketing
die
on
within
their
entire
network.
So
we
kind
of
get
this
win-win
situation,
so
I
mean,
if
other
protocols
want
to
offer
similar
sort
of
promotion
of
dye,
we
could
definitely
offer
it
to
them
as
well.
B
I
I
personally
think
that's
a
good
idea,
because
that
way,
kind
of,
like
you
can
price
the
in
different
markets,
set
a
floor
of
the
pricing
and
then
rest
of
the
die
gets
priced
depending
on
what
is
the
supply
and
demand?
I
think
that's
a
very
interesting
idea
and
and
that's
strengthened
the
position
of
the
maker
dial
ecosystem,
as
as
issue
of
of
the
the
stable
point
to
these
markets.
A
I'm
not
sure
how
you
well,
how
it
calculates
the
the
spread
between
the
the
borrowing
and
the
on
the
landing,
but
potentially
what
what
I
find
a
little
bit
weird
or
what
I
did
in
the
beginning
is
that
we
are
not
deciding
how
much
fees
we
are
earning
we're
just
deciding
on
the
target
landing.
I
guess
so
this
this
gives
us
a
little
bit
less
control,
so
we
kind
of
need
to
be
guessing
what
the
the
rate
would
be.
B
A
Yeah,
one
of
the
things
we
were
discussing
is
to
like
have
a
group
determine
this?
Well,
the
stability
fees
and
the,
and
so
anything
that
has
to
do
with
these
parameters,
have
a
group
that
can
decide
them
and
then
governance
vote
on
this
group
and
have
like
a
reporting
system
to
avoid
voting
so
much
and
to
reduce
the
governance
overhead.
But
I'm
not
sure
where
we
arrive
with
that.
H
Yeah,
I
have
a
question
for
stani:
hey
it's
donnie,
it's
actually
a
two-part
question,
the
first
part.
How
do
you
think
this
could
help
out
with
real
world
assets?
As
far
as
you
know,
new
protocol,
not
new
protocols,
but
new
opportunities
from
the
real
world
coming
into
the
blockchain?
That's
the
first.
H
In
your
piece
that
you
wrote
on
the
forum
talk
about
saying
that
ave
is
going
to
be
interacting
with
every
single
layer
or
two,
and
I
was
just
wondering
so
far-
we
only
heard
you
guys
are.
You
know
working
on
matic,
polygon
and
wondering
if
I
guess
does
this
mean
you're
going
to
be
also
an
optimism,
and
you
know
any
other
kind
of
ck
roll
up.
B
Okay,
yeah,
I
think,
or
I'll
definitely
like
thesis-
is
that
I
mean
you
overall
like
how
we
think
about
web3
is:
is
that
it's
it's
set
up
also
like
cultures
and
ecosystems,
so
we
have
a
particular
ecosystem
and
culture
in
layer
one
we
have
things
happening
in
matic,
for
example,
the
nfd
economy
is
very
vibrant.
There
we
also
have
there
are
a
lot
of
gaming
activity
and
we'll
see
different
kinds
of
economies
and
and
cultures
form
in
other
blockchains
and
layer.
B
Twos,
and
especially
here
is
interesting
part
is
that
ethereum
layer,
one
becomes
very
massive,
like
very
high
gas,
intense
place
to
to
interact,
and
then
trans
transact.
So
probably
we'll
see
this
kind
of
like
a
behavior,
where
larger
amounts
will
move
in
layer
one
and
then
on
layer.
Twos
we'll
see
like
smaller
deposits,
for
example.
We
we
deployed
matic
market
three
weeks
ago,
and
we
have
more
users
in
matic
that
we
have
in
the
layer
one,
but
those
deposits
are
way
more
smaller.
B
So
it's
more
inclusive
way
to
import
more
more
users
into
the
decentralized
finance.
We
would
actually
deploy
even
more
markets
in
different
lyrius,
but
the
the
the
kind
of
like
a
truth
is
that
none
of
them
are
actually
at
the
moment
in
a
capability
of
actually
being
production
ready.
So
there's
still
kind
of
we're
still
in
the
time
period,
where
we're
waiting
optimism
to
work
arbitration
to
work,
the
z
casing
kind
of
like
a
to
to
work
as
well
and
and
we're
still
very
early.
B
But
currently
it's
not
our
main
scope
and
I
would
say
that
make
a
dial
as
a
system
how,
how
it's
been
built
as
a
protocol
reward
board
assets
work
pretty
well,
because
you
can
cap
the
walls
with
borrowing,
borrowing
and
limits
and
how
much
you
can
actually
create
die
from
from
particular
depth.
Types
in
our
case,
like
abe,
wants
to
focus
more
where
you
could
actually
land
currencies
against
collaterals
that
are
emerging
in
the
the
the
efi
ecosystem
that
passes
to
the
other
risk
framework.
B
So
that's
the
kind
of
a
current
focus,
but
real
world
assets
will
be
a
very
big
value
proposition
for
the
whole
decentralized
finance,
because
most
of
the
value
is
implying
in
actual
currencies
or
tangible
fungible
assets,
but
they're
actually
in
non-fungible
assets,
properties,
art,
anything,
anything
that
even
could
not
be
calculated
quantified
previously
and
and
now
because
of
the
blockchain,
can
be
done.
That
will
become
an
asset
and
will
have
value.
It
will
be
a
non-fungible
representation
which
could
be
used
as
a
collateral.
So
I
definitely
think
in
the
future.
F
Awesome,
I
know
in
your
posts
talking
about
the
module
stating
you
mentioned,
the
kind
of
l2
lending
markets.
So
circling
back
to
that,
I
guess
I
was
kind
of
missing
the
link
in
terms
of
like
how
this
helps
support
lending
on
on
l2
as
well.
I
don't
know
if
you
could
go
over
that
with
the
kind
of
direct
deposit
module.
B
B
Yeah,
I
think
in
the
future,
even
like
it's
it's
pretty
much
like.
I
would
think
that
so
you
can,
you
can
use
the
matic
bridge.
You
can
build
on
bridges.
I
saw
in
optimism.
There
probably
optimism
wants
to,
for
example,
have
like
of
so-called
official
bridges
that
there
is
official
diabetes
official.
I
used
to
see
bridge
pneumatic,
there's
like
multiple
types
of
bridging,
so
anyone
can
practically
create
a
create
a
bridge,
but
it's
end
up.
B
The
kind
of
like
decisive
thing
is
the
the
security
of
the
bridge,
who
is
actually
governing
that
particular
bridge.
Is
it
immutable
how
it
works?
Those
kind
of
questions
in
the
future-
and
I
think
the
the
layer,
one
bootstrapping
and
and
distributing
the
the
die
eventually
is
something
kind
of
like
a
that.
A
D
B
B
The
interesting
part
is
that
maker
dow
will,
a
period
of
time
have
like
protocol
controlled
the
governance
power,
so
it
just
strengthens
the
relationship
over
time
that
becomes
very
valuable
because
obviously,
ave
is
a
secondary
landing
market.
Having
governance
over
that
is
is
very
strategically
good
and
that
also
has
upside
or
actually
make
a
dog
community
to
to
do
more
things
with
ava
in
the
future.
So
I'm
very
excited
about
this.
C
H
H
B
Yeah,
so
the
risk
team,
which
is
led
by
by
actuary
that
has
been
working
in
the
central
bank
of
france
and
in
practically
the
the
risk
framework,
consists
of
different
kinds
of
details,
such
as
the
methodology
methodology.
We
are
using
to
assess
different
kinds
of
risks.
Typical
risks
are,
for
example,
technical
risk,
liquidity,
risk
market
risk
and,
and
also
other
kind
of
risk,
related
more
of
a
economical
risk,
but
technical
risk
as
well.
B
The
content
report-
it's
very
long
report,
but
it
has
very
fascinating
information
on
how
what
what's
the
kind
of
like
a
risk
levels
at
other
currently
compared
to,
for
example,
compound
how
our
safety
module
actually
helps
to
mitigate
the
risk
and
what
kind
of
further
things
we
could
do
to
me
to
get
the
risk
further.
And
these
are
kind
of
like
the
things
that
we
are
constantly
working
upon
so
risk
as
that's.
Why,
for
example,
maker
naked
has
a
this
claim.
Other
has
a
risk.
B
Team
is
because
risk
is
something
it's
constant
work,
because
you
also
need
to
monitor
assets,
not
in
the
listing
phase,
but
also
constantly
and
and
looking
whether
those
assets
still
have
the
capability
of
being
as
a
collateral.
Or
is
it
something
that
should
be
turned
off
and
that's
something
that
can
be
done
by
the
governance
and
over
a
period
of
time.
Since
the
maker
dial
governance
is
getting.