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Description
Know your MIP KYM#07: Declaration of Intent - eurDai
In the 7th episode of Know Your MIP we discuss subproposal MIP13c-SP10, the declaration of intent that MakerDAO should investigate and build a subprotocol providing a DAI-like stablecoin pegged to the official currency of the European Union.
Agenda and Discussion:
https://forum.makerdao.com/t/know-your-mip-kym-07-declaration-of-intent-eurdai-friday-april-09th-13-00-utc/7362
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
Hi,
everyone
welcome
to
know
your
mip
edition
seven,
so
my
name
is
juan.
I'm
joined
here
by
a
bunch
of
people
interested
about
maker
and
apparently
the
european
economical
system.
So
today
I'm
I'm
joined
by
mr
seb
ventures
and
ultra
shoopy,
both
very
active
members
in
the
forum
and
they're
going
to
be
walking
us
through
the
euro
die
declaration
of
intent.
So
that's
snip,
13
sub
proposal,
number
10.
A
B
B
So,
basically,
since
the
launch
of
multi-correlative
die,
we
have
been
focused
on
growing
the
existing
ecosystem
based
on
the
usd
packed
die,
but
it
has
been
a
long-term
goal,
basically,
since
the
beginning
of
megadow,
to
expand
this
to
offer
something
else
than
something
packed
to
the
us
dollar.
But
for
sure
the
the
pipeline
of
engineering
is
is
pretty
full.
We
have
liquidations
2.0
in
the
pipeline,
we
have
governing
walls,
we
have
more
reward
assets.
B
We
have
a
lot
of
stuff,
so
I
think
it's
pretty
easy
to
explain
why
euro
die
is
totally
not
a
focus
right
now,
but
I
can
remember
that
when
I
was
at
the
consensus
2018
in
new
york,
there
was
this
announcement
of
circle
that
they
are
going
to
release
the
usdc
and
by
the
time
we
already
had
zai.
So
I
said
to
myself:
oh,
let's
see
how
how
we
can
compete
here,
but
at
least
we
are
ahead
in
the
competition.
For
now.
B
I
think
we
can
all
agree
that
things
are
different
now,
despite
being
the
first
mover,
we
are
not
the
biggest
usd
based
stablecoin
in
the
ecosystem
for
the
euro.
It's
actually
even
births.
They
are
already
competitors
on
the
market.
They
are
pretty
small,
but
I
mean
if
we
would
compare
us
just
three
years
ago
we
were
below
100
million
die.
We
are
not
even
the
first
mover
here.
We
are
not
the
first
one
in
the
game.
C
B
There
is
another
fact
to
know
which
is
probably
not
that
pressing,
but
the
relevance
for
the
us
dollar
as
a
reserve
currency
is
declining
over
the
last
years
and,
what's
even
more
important,
I
would
say,
is
that
sapp
already
had
two
real
world
as
a
real
world
asset
prospect.
They
were
basically
asking
for
a
diet
based
on
the
euro,
so
not
on
the
not
on
the
us
dollar,
because
they
are
essentially
targeting
european
markets.
C
A
Tokens
I'm
guessing
that
there's
not,
or
at
least
I
haven't
seen
a
lot
of
composabilities
or
a
lot
of
the
apps
taking
this
euro-based
table
coins
to
actually
I
don't
know
get
interest
or
or
yield
or
whatnot.
I
don't
know.
If
that's,
if
that's
the
case
or
you
have,
you
guys
have
investigated
a
bit
and
and
that's
that's
not
the
case.
D
D
We
have
a
synthetics
euro,
which
is
becoming
significant
as
well,
and
there
is
a
curve
pool
that
that
gives
something.
I
don't
know
how
much,
but
you
are
right.
That's
up
currently,
as
the
other
one
is
not
important.
Yet
now
you
are
right
that
you
cannot
farm
with
your
currently
but
at
the
same
time
the
city's
version
of
euro
is
not
super
super
safe.
It's
not
super
super
clear.
What
is
backing
the
asset,
the
stable
coin
and
on
synthetics?
D
A
D
D
D
Million
alpha
million
in
the
curve
pool-
and
you
can
get
twenty
five
twenty
six
percent
up
to
sixty
percent.
Thanks
to
the
curve
you
are
nice,
euro
l,
which
is
from
lug,
is
stablecon
that
is
on
tesos.
I
spoke
with
them
a
little
bit.
Their
business
model
is
on
transactions,
so
it
will
never
be
big
and
there
is
a
kyc.
So,
let's
remove
all
the
interest
for
defy
and
cellular
euro
is
launching
soon
end
of
the
month
with
eight
million
and
they
are
fully
backed.
So
that
might
be
a
better
competitor.
B
C
B
Some
discussion
going
on
and
I
reached
out
to
sep
and
we
bounced
around
some
ideas
and
yeah.
We
we
all
know
that
the
time
to
market
is
is
pretty
long
that
we,
we
basically
have
to
apply
a
lot
of
strategic
patrons
whenever
we
want
to
bring
something
big
into
the
the
maker
ecosystem.
This
is
not
a
critique.
This
is
just
the
way
it
is,
and
I
think
it's
good.
I
think
we
are.
B
We
are
moving
in
the
in
the
right
speed,
basically,
but
nevertheless,
we
think
that
it
makes
sense
to
think
about
at
least
how
we
could
provide
a
second
stable
coin
within
the
maker
ecosystem
yeah.
So
we
basically
decided
on
a
friday,
just
let's
write
down
a
declaration
of
intent,
bring
it
to
the
forum,
wait
a
month,
put
it
into
the
monthly
cycle
and
basically
find
out
what
the
makers
stakeholders
are
thinking
about
this.
So.
C
B
Is
the
reason
why
it's
going
on
shane?
I
think
next
monday,
I
don't
know
yeah.
Probably
next
week
we
put
in
already
a
couple
of
constraints
into
the
declaration
of
intent,
basically
to
make
sure
that
the
whole
thing
starts
as
an
experiment
and
that
it
does
not
need
to
be
exactly
the
same
does
not
meet
that,
doesn't
need
to
meet
the
exact
same
of
criteria
in
terms
of
quality
and
robustness,
so
one
one
constraint
we
put
in
is
that
this
should
be
tied
to
the
existing
existing
system.
B
This
should
not
be
a
fork,
especially
not
in
terms
of
mkr
governance,
so
we
don't
want
to
have
a
second
governance
token,
or
something
like
this.
This
should
be
just
be
part
of
the
existing
infrastructure,
and
we
also
put
in
this
constraint
and
it's
kind
of
debatable,
but
I
think
even
if
we
just
build
it
this
way
and
then
decide
not
to
do
it
in
the
end,
once
we
deploy
it.
B
I
think
it's
good
to
think
about
this,
basically
making
sure
that
we
are
not
going
to
risk
any
mkr
dilution,
so
that
would
result
into
something
like
euro
die
running
in
some
kind
of
a
sandbox,
and
maybe-
and
this
is
one
of
the
hopes
I'm
having
for
for
the
future
as
well-
that
this
is
not
only
for
eurodye,
but
this
could
also
provide
some
kind
of
template
for
any
future
die
variants.
We
are
going
to
push
out
because.
C
B
Euro
usd
is
all
fun
yeah
great,
but
I
think
there
is
a
lot
of
more
currencies
where
it
would
make
sense
to
have
something
like
this
yeah.
Of
course,
7b
already
bounced
some
ideas
back
and
forth,
so
just
to
have
some
kind
of
inspiration
how
this
could
resolve
or
how
this
could
be
built.
One
possible
approach
where
we
haven't
found
too
many
big
problems.
B
B
So
we
can
make
sure
that
we
keep
the
pack
from
the
very
beginning,
also
sucking
in
some
some
liquidity
from
the
existing
euro-based,
stable
coins
and
then
what's
basically
needed
as
well,
is
that
we
adjust
the
flopping
mechanism
to
not
auction
off
mkr
tokens,
but
it
still
instead
sells
some
kind
of
zero
coupon
bonds
that
basically
mature
on
on
flat.
So.
B
B
Hopefully
we
are
not
going
to
meet
them
at
all,
but
instead
just
filling
the
surplus
buffer
and
then
tokens
yeah,
but
it
would
be
essentially
some
kind
of
mini
version
of
the
existing
protocol,
we're
having
leveraging
the
components
that
we
can
basically
reuse
yeah,
but
there
is
still
a
lot
of
stuff
unclear.
I
mean
this
is
just
one
possible
approach:
do
we
know?
Is
it
the
best?
Are
there
different
approaches.
A
C
B
Well,
yeah
in
case
the
the
volts
goes
under
water
and
the
liquid
in
the
liquidation
process
is
not
going
well,
so
we
essentially
default
on
protocol
level,
so
we
suck
up
all
the
surplus
we
have
in
the
surplus
buffer.
Then
we
essentially
run
in
the
same
situation
as
on
black
tuesday
last
year
that
we
basically
have
to
refinance
ourselves,
and
we
do
this
by
basically
selling
or
auctioning
off
a
euro
bond.
B
Would
just
probably
go
into
a
situation
where
we
would
need
to
emergency
shutdown
or
do
something
else?
Funny
nice?
No,
but
I
mean
essentially
those
euro
bonds
were
probably
being
auctioned
off
with
a
pretty
hefty
discount
in
the
very
beginning,
or
not
I
mean
if
this
is
just
a
small
dip
and
we
I
don't
know,
everybody
is
confident
that
we
are
going
to
running
positive
again
in
the
near
future.
B
And
I
mean
this
would
be
something
that
we
could
also
just
basically
build
and
configure,
and
at
some
point
we
might
decide
that
we
basically
set
the
amount
of
euro
bonds
being
issued
to
zero,
and
then
we
would
go
basically
essentially
with
the
same
way
of
we
are
doing
it
right
now.
So
diluting
mkr
tokens,
which
would
be
probably
the
best
way.
Because
then
everybody
could
be
sure
that
it's
not
something.
B
A
B
We
still
haven't
fixed
the
demand
side,
so
so,
how
would
this
even
help
if
you
would
create
a
second
sable
coin,
yeah
but
yeah?
Nevertheless,
I
think
making
a
plan
is
a
good
idea,
even
if
you
don't
directly
execute
so
this.
This
is
essentially
what
the
declaration
of
intent
is
about,
basically
find
out
how.
How
is
the
sentiment
among
mkr
holders
of
basically
investigating
on
this,
so.
D
B
B
I
mean
I
don't
I
don't
expect
a
lot
of
cannibalism
between
those
two
stable
coins
there
is
for
sure
is,
is
some,
but
I
don't
know
if
you
would
have
something
like
10
billion
die
usd
based
and
another
5
billion
euro
die.
Then
we
would
have
more
revenues,
more
income,
higher
price
for
the
mkr
holders.
I
mean
it's,
it's
also
a
way
of
growing
right.
It's
we
can
grow
just
by
the
usd
and
there's
plenty
of
space
to
grow.
But
this
is
this.
A
Yeah,
I
don't
know
if
there's
some
form
from
the
growth
team
or
business
development,
but
I
can
totally
see
partners
that
are
not
using
die
because
of
the
exposure
that
they
would
get
to
us
dollar
and
potentially
having
a
euro
die,
would
mitigate
that
risk,
that
currency
risk,
and
so
I
I
could
definitely
see,
there's
something
growing.
I
I
do
not
know
how
big
that
market
is
on
the
opposite
side,.
D
The
market
is
smaller.
There
was
a
slide
on
it
that
the
euro
market
is
smaller
than
the
u.s
dollar
market,
but
that
might
evolve
in
the
future.
But
let's
stick
to
what
we
know,
but
the
difference
is
that
we
don't
have
competition
in
europe,
for
one
specific
reason
is
that
you
cannot
make
a
fiat
backed
euro
stable
coin.
It's
just
not
possible
because
the
interest
rates
are
below
zero.
D
So
that
means
that
when
you
deposit,
100
1000
in
your
bank
account
in
europe
at
the
end
of
the
year,
you
have
less
money
than
what
you
started
with,
but
if,
at
the
same
time
you
issue
a
liability
on
the
blockchain
that
is
the
same
all
over
the
year.
So
if
one
euro
stable
coin
is
worth
one
euro
on
january
1st
and
the
same
one,
your
stablecoin
is
still
worse.
Why
one
dollar,
when
you
at
the
end
of
the
year,
someone
has
to
pay
for
the
difference
and
it
will
be
the
stability
issue.
E
D
A
D
E
D
E
Agree,
especially
for
real
world
assets,
it's
really
important,
so
I
think
it's
a
very
valuable
initiative.
The
only
question
is:
is
it
scalable?
Can
we
scale
this
beyond
euro
diet
to
other
currencies
or
perhaps,
as
your
slide
shows,
there's
there's
not
much
point.
There's
the
number
of
quality
currencies.
That
is,
you
know.
E
D
Oh,
it's
not
easier,
I
mean
for
us,
it's
not
a
problem.
The
negative
interest
is
not
a
problem
for
us,
because
when
you
will
deposit
each
year
on,
if
on
the
vault,
you
will
pay
an
interest
rate,
because
there
is
a
risk.
If
liquidation
doesn't
work,
we
lose
money,
so
people
will
pay
to
borrow
europe
just
like
people.
D
B
Yeah
but
but
again
I
mean
the
the
point
is
valid.
I
mean
if
we,
if
you
find
a
way
how
you
could
do
it
basically
as
a
side
system
with
euro
die,
then
you
could
apply
the
same
template
essentially
for
the
british
pound
or
whatever
currency
you
want.
To.
I
mean
what
you
essentially
need
in
the
end
is
some
kind
of
special
oracle
dealing
with
the
euro
price
per
eth
or
the
well.
B
D
Currency,
I
really
think
that
the
technical
part
is
hard,
but
what
will
be
harder?
Is
the
marketing
part
to
have
people
using
it
to
not
to
let
people
know
that
it's
safe
to
use
your
diet
and
that's
more?
There
is
a
lot
of
work
to
be
done,
so
you
can
duplicate
the
smart
contract
but
duplicating
the
marketing
effort
and
duplicating
the
business
development
effort
that
require
a
lot
of
work.
B
B
Of
track
record
on
the
mkl
system,
right
now
we
survived
the
long
beer
market.
We
halfway
survived
the
black
tuesday,
and
it's
adding
up.
I
mean
you
could
say
that
the
sandbox
thing
is
not
as
trust
trustable
as
the
the
main
system,
but
as
soon
as
eurodi
works,
then
the
next
one
like
the
british
pound,
would
be
a
lot
easier
from
the
marketing
perspective,
because
people
would
essentially
trust
in
this.
In
this
mechanism.
B
F
A
F
F
I
mean
if
we
have
like
a
divole
in
like
the
euro
sandbox,
then
that
lets
people
do
like
foreign
exchange
like
that's
right.
They
can
go
along
on
whichever
way
around
is,
but
the
problem
you
have
with
that
is.
You
can
only
go
like
one
way
unless
you
bring
euro
die
back
into
the
the
main
like
make
a
system
right,
it's
like
yeah.
I
don't.
D
Yeah,
so
you
need
a
risk-free
arbitrage
to
keep
the
peg
no
stable
coins
that,
if
you
don't
have
a
risk
free
arbitrage
to
keep
the
peg,
you
don't
keep
the
pack
or
you
keep
somewhat
the
peg
like
die
last
year,
so
we
can
use
a
fiat
backed
collateral,
a
stable
coin,
and
the
market
cap
is
not
an
issue
because
they
can
increase
the
market
cap
quite
easily.
I
mean
you,
just
someone
will
do
the
arbitrage.
D
F
D
F
B
E
B
B
D
D
D
G
C
D
D
A
A
Seven
team-
I
don't
know
if
you
have
done
any
type
of
analysis
yet,
where
you
will
you
check
where
you
check
out
what
needs
to
be
so
what
can
be
used
from
the
things
we
have
like,
potentially
oracle's
is
something
relatively
easy
to
upgrade,
but
which
kind
of
smart
contracts
would
need
to
be
rebuilt
from
scratch
because
of
these
needs
and
and
what
so,
what
can
be
reused
and
what
do
we
need
to
do
from
scratch?
What's
the
effort
of
this
initiative.
B
B
A
B
B
Yeah
but
well
it's
it's
from
my
point
of
view:
it's
not
about
how
we
would
do
this
from
a
technical
perspective.
Of
course
we
could
just
reuse
the
same
implementation
and
you
just
put
50k
mkr
into
the
system
and
then
euro
dies
shut
down
by.
Why
would
you
would
do
that?
There's
no,
essentially
no
incentive
to
do
this
with
this.
With
this
eurobonds
thing,
why
would
anybody
shut
down
euro
die.
D
A
D
C
A
Guys
I
wanted
to
ask
you
about
potential
next
steps.
I
know
that
right
now,
there's
the
declaration
of
intent
that
going
for
some
kind
of
dark
magic
vote
in
the
governance
cycle.
Let's
say
that's
a
positive
and
they
could.
The
community
has
a
positive
response.
What
would
be
the
next
steps?
Are
there
any
plans
or.
B
E
I
don't
see
the
the
passing
as
much
as
a
real
problem.
I
think
everybody
would
love
this
proposal.
The
only
thing
is
that
the
sign
that
you
know
I'm
not
a
macroeconomist,
but
I
think
the
maker
protocol
should
try
to
avoid
making
taking
currency
risk
just
for
the
design.
This,
the
the
cloning
of
the
various
collaterals,
that
sounds
that
sounds
doable
and
I
I
think
we
should
go
for.
D
B
No,
I
also
don't
think
it's
a
problem.
Of
course
it
needs
effort
to
build
if
europe
oracle,
but
I
mean
we
already
have
plenty
of
oracles
and
basically
well,
it's
a
it's
a
question
of
priority,
but
the
the
whole
oracle
system
we
have
in
place
is,
from
my
point
of
view
capable
of
yeah
having
an
additional
oracle
just
for
the
euro
case.
H
Yeah,
so
I
think
for
me
the
main
problem
is
more
like
we're
going
to
duplicate
the
code
and
at
some
point,
if
you
change
something,
for
example,
liquidation
v2,
we
would
have
to
change
it
also
in
on
this
system.
That's
that's
a
main
problem,
but
I
think
it's
a
it's
an
acceptable
problem
anyway,
for
example:
liquidation
v2.
We
will
have
to
change
it
anyway,
so
we
just
have
to
change
the
code
for
everything.
B
Yeah
I
mean
my
my
if
I
if
I
would
well
if
I
would
have
free
time
and
could
do
it,
and
I
would
like
to
approach
this
problem
from
an
engineering
side.
I
would
like
to
try
to
basically
stick
to
as
much
as
possible
to
the
og
system
and
make
sure
you
I
don't.
I
don't
do
too
many
adjustments
and
then
it's
easy
to
upgrade,
because
I
basically
do
it
exactly
the
same
or
we
would
would
have
exactly
the
same
spells
in
the
end
for
the
eu
die
system.
As
for
the
for
the
og
system,.
H
Actually,
I
I
tried
a
long
time
ago
now
I
try
to
do
it
and
it's
relatively
easy:
the
oracle.
It's
relatively
easy.
We
just
take
the
so.
We
just
need
a
euro
oracle,
and
then
you
just
multiply
with
in
the
us
us
eth
for
example,
so
it
will
just
work
as
fine
for
every
every
words.
As
far
as
the
votes
are
the
same
as
one
we
already
have.
H
The
main
problem
is
liquidation.
We
haven't
spoken
about
liquidation,
the
liquidation
is.
If
we
liquidate,
we
will
need
to
liquidate
against
euro
and
that's
that's
going
to
be
a
problem.
What
I
thought
about
is
to
transl
to
basically
liquidate
in
u.s
dollar.
So
if
we
liquidate
in
u.s
dollar,
so
if
we,
if
we
use
a
liquid
the
liquidation
system
of
the
us
dollar
system,
we
are
fine.
The
only
problem
is
we
get
the
dollar
instead
of
euro,
but
it's
just
a
translation.
It's
just.
Basically,
it's
the
same.
H
F
F
H
D
H
H
F
Yeah,
I
think,
basically
you
would
just
you
would
set
up
so
there's,
there's
only
other
one
like
liquidation
set
up
in
like
euro
diet,
which
swaps
which
liquidates
like
which
recovers
your
diet
in
exchange
for
mint
new
dye,
and
then
that
dye
is
passed
well,
that
that
debt
and
the
cholesterol
is
passed
to
the
main
system,
which
would
then
liquidated
through.
I
guess
the
more
commonly
used
things
yeah.
B
H
H
A
A
E
E
D
E
A
H
B
C
C
B
Well
from
the
engineering
side,
I
don't
think
you
need
a
big
team
to
do
this.
Well,
assuming
that
you
can
basically
leverage
the
the
ecosystem
that
we're
having
right
now
but
yeah,
so
half
a
pizza
team,
or
something
like
this
just
from
from
the
engineering
perspective
it
it's
also
a
question
of
when
right,
but
this
is
not
going
to
scale
properly
if
you
just
throw
30
engineers
at
this
problem,
this
is
not
going
to
be
solved
in
three
weeks.