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From YouTube: Governance and Risk Meeting: Ep. 9
Description
In this Governance and Risk meeting, Steven Becker, President and COO of MakerDAO, will continue guiding us through his Governance Risk Framework document.
We speak about correlation risk and collateral book building. Soren Peter talks a bit about the new launch of our voting dashboard.
Governance and Risk Framework - Part 1: https://medium.com/makerdao/makerdao-governance-risk-framework-38625f514101
Governance and Risk Framework - Part 2: https://medium.com/makerdao/makerdao-governance-risk-framework-fc8939f3d4e9
Foundation Proposal: https://medium.com/makerdao/foundatio...
Website: https://makerdao.com
Twitter: https://twitter.com/makerdao
Reddit: https://www.reddit.com/r/MakerDAO/
Chat: https://chat.makerdao.com/home
Email: info@makerdao.com
A
No
and
that's
a
huge
thing.
It's
a
lot
of
shared
moment
in
in
the
history
of
maker
doubt,
and
so
in
anticipation
of
some
questions
we're
going
to
start
getting
around.
How
does
a
voting
mechanism
work?
What
kind
of
votes
are
we
having?
What's
the
implication
of
these
votes?
Can
we
debate
some
of
these
votes?
I
think
those
are.
Those
are
things
that
are
going
to
start
to
arise
more
and
more
in
these
meetings.
I
think
that
Soren
and
members
of
his
team
are
going
to
be
joining
us.
A
So
if
anyone
has
any
questions
about
how
the
vote
went
or
some
mechanisms
of
the
new
voting
UI
or
something
keep
those
in
mind,
maybe
collect
them
and
towards
the
end
of
the
meeting,
we
can
get
Soren
to
do
a
little
talk.
Very
brief
talk
about
how
the
vote
went
and
maybe
answer
some
of
the
outstanding
questions.
A
B
B
That
was
something
we
we
just
simply
couldn't
avoid,
but
to
to
recap
from
you
know
where
we
previously
left
off
the
one
thing
that
we
we
have
done
up
to
this
point
is:
we've
defined
all
the
first
principle,
risks
that
are
in
the
system
and
we've
also
had
a
look
at
how
each
of
the
parameters
that
are
set
in
a
system
look
after
those
particular
risks.
So
what
are
those
parameters?
Those
parameters,
as
everyone
knows,
liquidation
ratio,
the
debt
ceiling,
the
stability
fee,
the
one
thing
we
haven't
gotten
to
yet
is
the
stability
fee.
B
But
before
we
get
onto
that,
I
want
to
talk
about
correlation
risk,
and
this
is
something
I
brought
up
in
the
the
last
community
call
we
had,
but
I
think
it's
very
important
in
terms
of
understanding,
not
only
the
simple
aspect
of
what
diversification
brings
to
a
portfolio,
but
also
how
you
go
about
building
this
collateral
book.
It's
very
easy
to
simply
say
something
along
the
lines
of
well
go
and
get
all
the
collateral
types
that
have
very
low
diversification
to
each
other.
Stick
it
into
a
portfolio
and
you
should
be
fine.
B
It
really
doesn't
work
like
that.
There
are
so
many
constraints.
The
first
one
is
obvious:
is
a
business
constraint?
What
is
actually
available
in?
What
can
you
include
what
is
good
for
the
blockchain
economy?
What
actually
will
help
facilitate
growth
on
the
blockchain
economy,
and
that
is
important
to
understand
because
effectively
that's
what
we
do.
That's
what
make
a
token
governor's.
Do
they
facilitate
the
economic
growth
on
the
blockchain,
so
it
is
extraordinarily
important.
B
We
understand
how
are
we
building
our
collateral
portfolio
with
that
in
mind,
as
well
as
looking
at
the
overall
risk
of
the
portfolios,
so
are
the
overall
risk
of
the
portfolio
and
how
that
extends
to
protecting
the
integrity
and
stability
of
the
of
the
system.
So
that
being
said,
a
very
simple
thing
is:
let's
have
a
look
at
correlation,
so
everyone
has
a
very
good
idea
that
if
you've
got
a
couple
of
assets
that
are
not
correlated
to
each
other,
you'll
have
a
bit
of
a
diversification
benefit.
B
Now
in
your
general
investment
world
in
your
traditional
investment
world,
folks
would
look
at
this
and
say:
well.
If
you've
got
a
diversification
benefit,
we
can
increase
the
exposure
in
order
to
increase
the
return
in
the
in
the
book
for
the
portfolio.
We
don't
do
that.
What
we
are
doing
is,
firstly,
looking
after
the
safety
of
the
system
through
the
book
building
of
that
collateral
portfolio,
it's
very
important
to
understand
it's
very
important
to
understand
that
that
is
the
target,
not
maximizing
return
max
sorry
minimizing
risk,
because
that
translates
into
stability
and
integrity.
B
B
Liquidity,
that's
one.
The
nice
thing
about
the
quiddity
and
what
is
so
important
about
liquidity
is
that
it
actually
has
far-reaching
consequences.
Liquidity
is
a
result
of
two
things:
one
you
need
to
have
the
liquidity
and
their
uterus
is
liquidity
of
nan
correlation.
That's
also
important,
but
the
nice
thing
about
that
is
that
you
guys
are
thinking
very
much
in
terms
of
the
traditional
investment
management
role.
Those
are
the
things
that
you
really
do
need
to
consider
only
after
understanding,
one
very
important
premise:
that
is
what
is
the
token?
What
does
it
do?
B
Why
are
we
even
worried
about
it?
What
happens
if
we
have
cost
you
mind
back
to
to
EOS,
we
could
have
included
AOS
as
a
collateral
type,
but
what
was
the
consequence
of
it?
Well,
ARS
is
a
network
of
itself
that
eventually
went
off
ethereum
and
is
operating
on
its
own
network.
So,
for
intents
and
purposes
that
was
a
short
term
collateral
type.
We're
going
to
think
now
in
terms
of
what
are
the
grand
amount
of
tokens
out
there
and
how
do
we
categorize
them?
B
Why
do
we
need
to
categorize
them,
because,
in
order
to
understand
what
those
guys
do
in
those
categories
will
give
us
a
very
good,
a
clear
picture
of
the
longevity
on
the
blockchain?
Further
to
that,
and
this
one
basically
adds
into
the
idea
of
of
liquidity,
which
is
really
primary.
Is
how
big
are
they?
What
is
the
market
cap?
This
is
essential,
because
liquidity
of
market
cap
gives
you
a
very
good
idea
about
how
daily
volume
really
represents
the
true
trading
that
goes
on
with
that
particular
asset.
B
In
other
words,
the
price
discovery
that
you
see
in
the
exchanges
has
to
be
either
valid,
or
they
might
be
a
component
of
it.
That
is
a
bit
of
a
wash
trade
and
we
got
to
figure
out
which
is
which
so
that
liquidity
that
is
represented
to
us.
We
have
to
be
very
careful
and
we
have
to
be
very
particular
on
which
collateral
types
we
do
want
to
include.
So
as
a
as
an
example
of
this,
you
may
have
a
collateral
type
with
a
market
cap
of
let's
say
250
million
dollars,
but
it's
daily
liquidity.
B
Oh
sorry,
daily
value
traded
might
be
in
the
region
of
half
a
million
dollars.
What
does
it
say
about
that
particular
asset
type?
It
seems
that
the
the
organization
has
a
lot
of
value,
but
that
value
has
not
yet
translated
into
a
fluid
price
discovery
mechanism.
That
means
that
this
potential
there
there's
a
possibility
of
looking
at
this
particular
as
a
collateral
type
and
saying
this
is
definitely
something
we
might
want
to
include
in
our
portfolio.
B
But
what
is
effectively
holding
it
back
and
what's
holding
it
back
is
understanding
why
that
market
cap
hasn't
translated
into
a
fluid
sense
of
liquidity,
and
that
might
be
rooted
in
understanding,
primarily
what
that
organization
does?
What
that
organization's
goals
are
what
there's
like
what
that
organizations?
Fundamental
aspects
are
as
soon
as
you
know
that
you
can
categorize
the
token
or
categorize
the
asset
clearly,
and
it
might
give
you
much
better
concept
of
why
the
liquidity
looks
the
way
it
does.
B
On
the
flip
side,
you
might
find
there's
a
collateral
type
that
has
50
million
dollar
market
cap,
but
it's
daily
value
that
is
traded
is
in
the
proportion
of
something
like
25
or
30
million
dollars.
Now
that
immediately
should
bringing
some
alarm
bells.
How
does
15
million
in
issue
translate
into
the
superfluid
liquidity
of
50
to
60
percent
of
its
own
issue
per
day
now
out
intimate
reasons?
Why
now
it
would
be
the
case.
Well,
this
is
the
thing.
The
first
thing
you
need
to
first.
B
The
first
thing
you
need
to
look
at
is
what
type
of
organization
is.
What
type
of
token
is
it
if
you
find
that
it
is
primarily
a
currency
token,
then
it
is
feasible,
it's
possible
to
have
that
amount
to
turn
or
turnover
per
day,
but
if
it's
not,
then
immediately,
they
should
be
alarm
bells.
So
again
we
go
back
to
the
very
important
part
of
saying.
Well,
what
is
this
token
that
we're,
including?
B
What's
going
on
there,
a
little
bit
of
a
deep
dive
helps
I
mean
you're
not
going
to
go
all
the
way
down
to
to
understanding
the
first
principles
of
the
organization,
but
just
a
general
sense
of
what
that
organization
does
we'll
put
the
liquidity
in
perspective
now,
given
you
have
that
liquidity?
The
next
thing
as
to
what
David
obviously
I
mentioned,
is
liquidity
and
non
correlation.
Now
we
are
in
an
industry
that
is
effectively
still
in
its
infancy.
I
mean
it
is
nascent
so
to
expect
you
have
these
wonderfully
huge
under
versified
asset
types
out.
B
There
is
a
little
bit
of
an
ask.
Everything
is
fundamentally
rooted
to
the
underlying
native
token
that
governs
the
network
that
they
operate
on
so
consequently,
everyone
seen
what's
happened
with
with
eath
and
you've
seen
what
happens
with
all
the
tokens
that
are,
you
know,
presently
traded
and
are
operating
on
if
they're
in
blockchain.
A
B
Well,
when
we
include
that
when
we
include
the
collection
type
into
the
portfolio,
the
first
thing
you
need
to
look
at
is
understanding
what
it
is,
including
and
having
a
very
good,
at
least
as
far
as
possible,
a
very
good
representation
of
its
trading
profile,
because
the
system
uses
price
discovery
as
a
point
of
recourse,
so
in
other
words,
exchanges
secondary
markets,
price
discovery.
Therefore,
liquidity
is
where
the
recourse
of
the
system
comes
in.
So
that
is
of
primary
concern.
B
So
you
could
have
something
that
is
extraordinarily
volatile,
but
has
very
good
recourse
and
you
might
want
to
include
it.
So
how
do
you?
How
do
you
counter
for
that
extraordinary
volatility?
Will
you
do
so
through
the
liquidation
ratio?
So
you
would
want
to
include
it,
but
a
liquidation
ratio
might
be
250%
and
you
find
that
if
you've
got
high
volatility
and
ample
liquidity,
you
might
have
a
high
liquidation
ratio
and
a
high
debt
ceiling.
B
But
if
that
high
volatility,
which
is
usually
the
case,
is
associated
with
a
lower
market
cap,
a
smaller
amount
of
liquidity
actually
traded,
then
you'd
have
a
much
lower
debt
ceiling,
but
an
increased
liquidation
ratio.
So
you
can
start
seeing
how
all
these
parameters
start
working
for
each
other
and
and
against
each
other
in
order
to
represents
that
collateral
type
that
we've
included
into
the
portfolio
so
I'll
take
a
break
there
for
a
second
to
see.
If
there's
any
questions
or
any
statements,
I.
A
Think
most
of
the
questions
we
have
are
for
later
on
in
the
meeting,
so,
okay.
So
to
live
back
to
the
question
that
you
presented
to
the
everybody
who's
watching
what
what
collateral
types
do
we
suggest
or
what
would
we
like
to
see
and
I
think
that
the
obvious
one
that
people
generally
leaved
here
is
precious
metal
back
tokens
mm-hmm.
B
Well,
in
the
broader
aspect,
you
want
to
have
a
look
at
asset
back
tokens.
I
mean
that's
effectively
where
your
lower
correlations,
high
diversification
effects
would
be
able
to
really
come
into
play.
So
consequently,
what
you
know
we
are
doing
is
trying
to
facilitate
as
much
as
possible
the
advent
of
these
type
of
tokens.
We
are
helping,
we
are
partnering
and
we
are
really
trying
to
source
those
organizations
who
primarily
would
like
to
issue
acid
back
tokens
because,
as
we
mentioned
before,
as
you
know,
rich
just
pointed
out
the
the
non
correlation.
B
There
is
a
lot
more
evidence
and
the
inclusion
of
that
into
the
correlate
into
the
collector
portfolio
would
be
obviously
much
better
an
inclusion,
but
keep
in
mind
that
the
way
that
you
build
this
portfolio
is
not
by
just
stipulating
some
massive
debt
ceilings
and
decide:
ok,
go
for
it.
Let's
see
what
happens,
you
actually
have
to
build
this
thing
in
a
lockstep
motion.
B
So
if
we
do
add
a
gold
back
to
couldn't
like
there's
a
couple
out,
there
is
Lester
hello,
gold
and
and
lyrics
everyone
I
think
is
more
of
favor
with
digits,
including
that
into
the
collateral
portfolio.
One
would
assume
that
the
underlying
spark
portfolio
is
really
where
youth
the
spot
gold
market
would
be
where
you'd
find
your
risk
parameters,
but
unfortunately,
that's
not
the
case.
What
is
the
case
is
that
you
have
to
take
into
consideration
organization
that
translates
the
spark
market
into
the
crypto
market
that
we
use
as
a
source
of
recourse.
B
B
If
that
fails,
you
can
actually
follow
the
recourse
path
all
the
way
to
the
actual
online
gold,
but
even
though
their
gold
is
available
to
you,
it
still
does
not
represent
the
spot
markets,
a
risk
profile,
because
you
still
have
to
go
through
the
actual
organization
and
how
much
the
organization
actually
has
available
to
you
at
the
moment.
If
we
put
in
some
massive
amount
for
for
gold,
it
will
not
be
reflective
of
the
organization's
we
have
in
the
collateral
portfolio,
it's
just
more
reflective
of
the
underlying
spot
market.
C
A
C
B
The
well
one
thing
that
you
just
mentioned
right
now
about
the
arbitrage
opportunity,
and
if
you,
if
you
do
a
little
bit
of
homework,
you
can
have
a
look
at
the
the
gold
futures
market
and
how
it
works
against
the
retail
gold
market,
which
digits
basically
represents,
and
there
you've
got
something
called
basis,
risk
and
basis.
Risk
is
where
you
actually
will
find
your
arbitrage
opportunities.
B
You
will
find
a
difference
in
price,
because
obviously,
the
spot
gold
that
the
the
gold
contract
on
the
simi
represents
is
completely
different
to
the
online
gold
that
you
know
digits
holds
and
the
X
difference
has
its
own
distributional
qualities
and
those
that
spread
which
is
effectively
the
basis,
expands
and
contracts.
And,
ultimately,
you
can
find
your
arbitrage
opportunities.
If
you
wish
the
anyone
can
do
an
arbitrage.
B
If
you
take
into
consideration
the
costs
involved
and
once
those
costs
have
been
taken
to
consideration
and
you
have
a
net
profit
but
there's
something
available
for
you,
it
really
is
going
about.
It
really
is
all
about
going
through
the
process
and
setting
up
the
operational
infrastructure
to
allow
you
to
do
this.
So
all
of
that
is
is
really
available,
but
you
know
going
back
to
the
likes
of
digits.
They've
got
such
potential.
It
just
really
is
a
case
of
like
any
other
organization,
getting
adoption
getting
traction.
B
People
seen
the
value,
getting
more
sense
of
how
the
the
underlying
process
works.
How
do
you
get
proof
of
asset?
How
is
that
justified?
You
do
need
a
pioneer
to
show
the
way
forward
and
then
once
it
becomes
clear
how
it
works,
everybody
will
will
be.
You
know,
jump
on
board
at
this
point
in
time.
There
are
a
lots
of
guys
out
there
wishing
to
to
issue
asset
back
tokens.
B
They
don't
have
a
massive
market
cap
and
you
know
consequently,
I
would
include
them
in
the
portfolio,
but
I
would
include
them
with
very
low
debt
ceilings
to
be
representative
of
the
issue
that
they
have
and
once
the
adoption
and
the
traction
all
that
soakin
takes
place,
it
will
be
reflected
in
the
debt
ceiling,
but
reflected
to
the
extent
that
it
doesn't
hurt
the
collateral
portfolio
as
a
whole.
Those.
A
C
A
B
B
Now
the
reason
that
that
is
so
important
that
little
instruction,
because
if
you
don't
tell
the
broker
that
you
wish
to
settle
in
gold,
he
will
close
out
he
or
she
will
close
out
your
contract.
But
if
you
do
wish
to,
you
are
then
part
of
the
integrity
process.
You've
got
to
figure
out
clearly
how
you're
going
to
take
delivery
of
this
gold.
In
other
words,
it's
going
to
be
in
a
warehouse
somewhere
you're
going
to
get
a
receipt.
You're
gonna
go
to
the
warehouse
with
the
receipt
and
say
that's
my
gold.
B
Even
that's
not
going
to
be
enough
for
you
to
take
the
gold
out
put
in
your
pocket
and
walk
out
the
door.
You
need
to
have
this
whole
transportation
insurance
all
this
infrastructure
around
it,
because
as
soon
as
you
take
that
gold
and
put
it
in
your
pocket,
theoretically
speaking,
it
is
out
of
the
integrity
process.
You
cannot
put
it
back
in
again.
It
has
to
go
all
the
way
back
to
the
beginning,
the
same
thing.
B
I
am
a
firm
believer
in
that
at
the
moment,
when
you
transfer
money
from
your
phone
to
someone
else's
phone,
it
seems
like
it's
a
simple
thing,
but
I
assure
you
if
you've
ever
looked
at
the
operational
processes
of
just
a
basic
back,
the
books
on
those
processes
are
so
thick.
It's
crazy.
It's
just
been
habituated
out
of
your
view,
it's
in
the
background
and
it's
taken
hundreds
of
years
to
iterate
into
what
it
looks.
B
Consequently,
asset
back
tokens
are
going
to
be.
You
know,
incredibly
important
and
I
think
they're
going
to
come
in
on
mass
you're
gonna
find
an
inflection
point.
It's
not
going
to
be
this
this.
This
transition
of
you
know
small
amounts
of
guys
trying
to
dominate
the
market
you're
going
to
find
a
a
critical
point,
a
tipping
point
where
the
realization
is
there.
The
infrastructure
is
in
place
and
they're
all
going
to
be.
B
A
Maker
require
some
more
sophisticated
intermediaries
when
so
looking
at
a
year
to
five
years
in
the
future,
where
potentially
there's
whatever
it
was
called
five
hundred
gold
back
tokens
out
there,
it
will
it
be.
Are
we
hoping
that
there
will
be
some
kind
of
a
clearinghouse
mechanism
or
some
kind
of
standards,
bodies
that
arise
where
they
sort
of
obvious
get
these
tokens
away
from
the
individual
capacities
of
usually
those
or
is
it
realistic
that
we
create
relationships
with
each
one
of
the
asset-backed
opens
I?
Think.
B
Will
be
creating
relationships
with
each
of
the
asset,
back
tokens
and
all
of
the
individuals
in
their
supply
chain.
It's
going
to
be
important
to
realize
that
you
know
previously,
you
might
have
had
would
say
I'm
just
going
to
exaggerate
for
a
moment
here.
You
know
150
steps
in
the
process
in
the
background.
Blockchain
should
reduce
that
down
to
a
case
of
being
30
steps
and
fewer
people
involved,
as
well
fewer
organizations
and
if
those
organizations
you
know
I
use
the
blockchain
to
its
full
capacity.
B
You're
gonna
find
that
not
only
is
it
efficient,
but
the
it's
gonna
be
efficient
transfer
of
information
as
well,
where
you
going
to
have
a
balance
of
so
many
items
that
beforehand
have
been
inefficient
and
I've
now
been
unlocked
and
you're
going
to
find
that
from
a
collateral
portfolio.
Point
of
view.
The
inclusion
of
those
particular
tokens
as
back
tokens
will
be
the
advent
of
something
new.
It
will
be
the
initiation,
the
catalyst
behind
the
tsunami
that
we
expect.
B
It
just
needs
to
go
to
show
that
one
works
efficiently
enough
and
proficiently
enough
with
enough
transparency
to
allow
the
rest
of
the
folks
out.
There
who
are
already
working
on
it,
they
also
don't
don't
get
me
wrong.
There
are
so
many
folks
working
on
this
and
they're
ready.
They
just
need
to
find
that
little
signal
that
will
sign
the
little
ability
all
that
platform
to
say.
C
B
Recourse
is
going
to
be
a
little
industry
all
by
itself.
There
is
I
in
my
one
of
my
previous
lives.
One
thing
I
like
to
do
was
combine
capital
market
and
insurance
market
together
collectively
it's
called
alternative
risk
transfer
and
what
you
do
is
you
try
to
find
that
wonderful
spectrum
of
possible
for
people
to
interact
with
things
that
are
very
difficult
to
to
employ.
B
So
here
the
first
step
we've
taken
is
we've
seen
that
secondary
markets
price
discovery
is
going
to
be
the
root
of
our
recourse,
but
that
doesn't
mean
that's
going
to
be
the
only
route
of
recourse.
You
can
use
a
an
entire
sub
industry
just
to
talk
about
what
recourse
means,
in
other
words,
there's
an
insurance
aspect.
There
there's
a
risk
transfer
aspect
there.
You
could
create
tokens
that
actually
take
on
that
risk,
transfer
and
then
deliver
itself
to
the
blockchain
for
people
to
actually
participate
in
that
risk
transfer
process.
B
So
I'll
give
you
a
simple
case.
You
might
find
that
there's
certain
tokens
that
have
insurance
baked
into
their
token
now
that
insurance
might
be
initially
from
the
traditional
space,
but
eventually
you'll
find
that
the
insurance
will
be
on
the
blockchain
as
well.
So
you
will
find
that
there
are
organizations
that
represent
backing.
That
represents
you
now
last
line
of
defense
and
being
available
to
to
folks
to
add
into
the
portfolio.
Take
exposure
to
this
also
goes
back
to
looking
at
you
know.
B
A
Dao
Dao,
for
all
intents
and
purposes,
may
be
a
new
legal
representation,
which
means
that
capital
structure
is
going
to
be
so
granular
that
it
will
represent
so
many
things.
One
aspect
of
it
might
actually
be
the
ability
to
ensure
itself
to
look
after
itself
and
that
can
be
stripped
out
and
obviously
put
onto
onto
an
exchange
or
made
available
to
folks
to
you
to
participate
in
the
point
I'm
trying
to
make
here
is
that
Rico's
by
itself
could
actually
be
an
entire
sub
ministry.
B
Very
much
like
you
know,
data
provision,
data
provision
and
cleaning
is
already
a
we'll,
be
out
of
small,
but
it
is
a
sub
industry.
How
do
you
go
about
making
sure
that
you
have
representative
data
so
all
of
these
aspects
that
we're
talking
about
ultimately
are
going
to
to
form
new
verticals
that
people
can
participate
in,
but
what
is
so
exciting
about
this
is
that
the
granularity
of
these
verticals
are
going
to
be.
Such
that's
never
been
seen
before.
B
That's
what
that's!
What
is
inspiring
me
about
the
blockchain
everywhere
I.
Look
where
you
try
to
create
these
wonderfully
and
what
they
used
to
call
exotic
derivative
structures
are
going
to
be
just
very
basic
and
very
clear
and
very
well
understood
structures
on
the
blockchain,
because
everyone's
going
to
be
able
to
see
what's
going
on
as
opposed
to
exotic
derivative
structures
which,
by
its
name
defines
you
know,
you
know
how
scary
they
some
exotic
means
that
combine
a
whole
bunch
of
things
together.
B
You
don't
understand
derivatives,
let's
not
go
there,
but
in
this
space
you
can
actually
say:
do
you
just
want
to
participate
in
the
vote?
There's
a
token
for
you.
Do
you
want
to
participate
in
an
insurance
that
backs
a
certain
product?
Here's
the
token
for
you.
It
becomes
very
specific
and
very
simple
if
you
think
about
it.
Naked
owl
has
one
very
simple:
objective
supply
a
stable
coin,
nothing
else,
but
if
you
have
a
look
at
all
the
things
that
go
around
it
in
order
to
make
it
work,
you
know.
B
A
Sorry,
I
won't
cut
you
off
here
before
you
this.
That
was
like
the
one
mind-blowing
takeaway
this
meeting,
I
guess
I'm
gonna
have
to
ruminate
on
that
one
for
a
bit.
That's
really
cool
work,
we're
coming
up
at
the
halfway
mark
and
I
wanted
before
we
hand
it
over
to
Sauron
I,
want
to
ask
you
a
question
about
a
collateral
type.
A
That's
that
sort
of
been
we
coyly
talked
about
in
a
quarry
manner,
every
once
in
a
while,
but
I
want
to
see
what
your
thoughts
are
on
this
like
a
collateral
type,
that's
simply
a
Fiat
based
token.
So,
when
nice
table
coins
come
along,
make
sure
USB
or
the
new
Winklevoss
versions,
we
tend
to
say
well,
that's
great,
with
that's
more
fuel
for
the
the
maker
Doubtfire
and
we
could
use
that
as
a
collateral
type.
A
B
Is
always
the
critical
component?
The
reason
that
we
don't
we
wouldn't
want
to
use
certain
stable
coins
is
because
the
recourse
mechanism
in
the
fine
print
says
we
may
not
be
willing
to
pay
you
the
amount
on
delivery
of
a
token
that
by
itself
just
says
there
is
no
recourse,
but
there
are
certain
stable
coins
that
we
would
want
to
use,
because
there
is
very
clear
recourse
into
the
underlying
funds
or
the
underlying
construct
they've
used,
so
that
is
important
would
I
use
stable
coins
that
are
on
the
blockchain
that
one?
B
In
other
words,
if
there
was
another
decentralized,
stable
coin,
if
there
was
a
an
algorithmic
as
also
decentralized
a
stable
coin,
I
would
be
hesitant
to
use
that
one.
The
reason
being
is
that
there
is
an
unfortunate
unfortunate
systemic
risk
where
we
could
inadvertently
use
something
from
their
construct
and
they
could
use
something
from
ours.
So
what
we're
doing
is
we
created
in
this
feedback?
Loop
and
everybody
knows
what
happens
when
you
bring
a
microphone
too
close
to
a
speaker.
B
Everything
starts
really
waiting
loud
and
things
break,
and
it
doesn't
happen
because
you
expected
that
happens
because
of
your
proximity.
A
very
simple
example
of
this
would
be,
let's
pretend,
there's
a
a
new
decentralized,
stable
coin
out
there.
Let's
call
it
coin,
a
and
coin
a
takes
the
same
thing
as
we
do
they
take
collateral
and
they
supply
their
their
coin.
Now,
what
happens
if
we
just
cut
out
all
the
collection
and
just
say
what
it?
B
What
happens
if
we
take
a
and
put
it
into
our
collection
portfolio,
and
then
we
supply
dial
and
then
diag
is
placed
into
their
collateral
portfolio
and
they
supply
a
and
this
virtuous
circle
carries
on
until
obviously
the
limits
are
reached
now,
that's
not
too
bad
but
effectively.
What
that
does
is
that
it
breaks
your.
B
B
The
user
carries
that
risk,
but,
to
a
certain
extent,
what
you've
got
is
an
overexposure
like
I'll.
Give
you
a
very
simple
example.
Let's
say
we
you
know
say
between
a
and
ourselves.
We
both
like
digits
right.
We
only
use
digits
in
our
in
our
portfolio
in
our
collection
portfolio,
not
digits
at
the
moment
is
got
a
I
stand
to
be
corrected.
Let's
say
a
three
million
market
cap
right
now,
I'm
moved
opinion.
B
You
shouldn't
be
more
than
20%
of
that
that
issued
market
cap,
so
I
would
have
a
debt
ceiling
of
600,000
but
Turk
but
stable
coin
a
they
decide
that
you
know
they
don't
like
that
sort
of
premise
they
like
to
just
use
the
full.
You
know
market
cap,
they
decide
if
their
debt
ceiling
is
3
million.
So
what
actually
happens
is
that
if
dittrick's
is
used,
we
might
get
to
our
debt
ceiling
of
six
hundred,
but
you
might
find
it
through
the
use
of
the
other
guys.
B
We
inadvertently
are
including
digits
exposure
into
our
collection
portfolio
throughout
the
collateral
types.
So
there's
a
little
bit
of
a
systemic
risk
that
you've
now
over.
You
exposed
yourself
to
a
particular
collateral
type
that
was
outside
of
your
control,
and
you
couldn't
see
it
because
you
don't
know
where
else
it
was
used
as
a
collateral
type.
So,
for
intents
and
purposes,
if
we
are
using
20%
of
digits
and
stable
coinage
is
using
the
remaining
80
percent.
B
So
this
is
a
very
it's
an
extreme
edge
case,
but
it's
just
Isle
I,
don't
expect
anything
else
that
you
could
have
this
sort
of
systemic
process
that
could
you
know
and
Julie
effect,
your
your
own
portfolio.
So
it
is
important
to
be
very
clear
about
who
you
want
to
include
into
your
portfolio,
either
directly
or
indirectly.
I
think
the
simplest
case
right
now
is
to
say
directly.
B
I,
wouldn't
include
certain
folks
that
are
very
much
representative
on
the
on
the
blockchain
that
are
stable
coins,
but,
ironically,
the
ones
that
representative
off
are
effectively
asked
back,
talk
suppose
once
I'll
be,
you
know,
happy
to
include
not
just
say
I'm
ruling
it
all
out.
That
really
just
boils
down
to
further
understanding
what
the
other
stable
coin
is
doing.
B
If
you
get
a
very
good
sense
of
what
they're
doing,
and
you
can
see
it's
orthogonal
to
what
you're
doing
it's
a
very
good
thing
to
include,
but
if
you
find
that
it's
very
much
parallel
to
what
you're
doing
you're
just
sort
of
doubling
down
your
exposure-
and
you
got
to
be
a
little
bit
careful
of
that.
Okay.
A
That's
that's
interesting!
We're
coming
up
on
the
45
minute
mark,
so
one
last
question
for
you,
Stephen
and
I
think
that
will
get
Soren
to
talk
a
bit
about
the
the
governance
UI
Jordan
asked.
Does
the
risk
team
have
preferred,
suggested
risk
parameters
ready
to
discuss
or
vote
on
for
multi
collateral
die?
Have
you
guys
thought
that
far
ahead?
Yet
we've.
B
Got
a
list
of
collateral
and
obviously
I
need
to
make
sure
that
we
are
we
we
give
those
organizations
heads
up
first
as
to
the
fact
that
we
would
like
to
include
them
before
we
tell
everyone
else,
because
you
know
it
really
boils
down
to
just
a
sense
of
protocol,
good
manners
and
decorum
that
makes
for
a
much
better
industry.
So
we
in
that
process
right
now
in
terms
of
risk
parameters,
are
pretty
much
are
attached.
B
B
Okay,
you
can't
just
guess
stuff,
you
go
one
three,
but
the
point
being
here
is
that
if
you
think
about
it
carefully,
you
actually
have
to
start
with
a
fixed
point,
and
that
fixed
point
has
to
be
your
liquidation
ratio.
You
actually
have
to
say,
given
the
liquidation
ratio,
what
are
the
other
two
look
like
most
people
would
think
you
know
given
the
debt
ceiling,
or
why
can't
you
do
it
separately
independently?
B
Well,
in
order
to
understand
what
we're
doing
you
need
to
see
it
independently
as
on
a
per
token
basis,
but
as
soon
as
you
starting
to
it
into
a
collateral
portfolio,
you
need
to
actually
start
thinking
about
it
in
terms
of
how
the
whole
thing
needs
to
be
constructed,
so
that
you're
not
over
exposing
your
up
to
any
one
particular
concentration
of
risk.
That's.
A
B
A
D
Anyone
first
of
all,
want
the
world
being,
is
still
open
for
another
two
days,
so
all
of
you
out
there
who,
as
mkn,
hasn't
voted,
go
on
and
and
cast
your
vote
because,
as
you
said,
which
this
this
is
a
really
a
big
moment
for
for
the
governance
of
of
maker
and
we
we
are
fully
committed
to
move
toward
decentralized
governance,
and
this
this
is
kind
of
a
way
that
nobody
as
far
as
I'm
aware
you
have
threat
before.
So
we
have
to
learn
along
the
way.
D
We
kind
of
we
are
aware
we're
not
here
with
this
version
of
it,
and
there
are
a
lot
of
things
to
take
into
consideration
for
the
first
one.
Here
we
really
kind
of
focused
on
making
sure
that
that
people
shouldn't
have,
they
are
a
wallet
where
they
keep
the
MK
are
exposed
more
than
then
for
a
minimum
time.
So
so
we
introduced
what
we
call
a
voting
proxy
contract
where
you
actually
can
specify
a
hot
wallet
to
use
for
voting.
D
So
you
only
need
to
have
your
code
wallet
connected
when
you
create
the
link
to
the
this
hot
wallet
in
this
hard
wallet.
All
it
can
do
is
it
can
move
the
maker
in
through
the
voting
contract
and
lock
it
up,
because
you
need
to
have
it
locked
up
to
be
in
the
world
and
it
can
move
it
back
through
the
code
wallet.
It
cannot
pull
it
back
to
itself.
It
cannot
send
it
anywhere,
so
you
simply
need
to
take
your
code
wallet
and
and
connect
it.
D
When
you
set
up
this,
the
cost
is
that
the
first
time
you
come
into
the
system
you
to
go
through
this
for
transactions
set
up
process
to
have
all
of
this
set
up,
but
the
act
they
also
in
people's
who
kind
support
to
kind
of
world
systems
because,
as
even
has
talked
about
in
the
prior
EP
fins.
Here
we
have
those
what
we
call
governance
worlds,
which
is
to
get
resolution
or
symbolic
words.
D
So
you
just
vote
for
keeping
the
system
as
it
is.
But
again
it's
two
different
voting
systems
and
to
be
able
to
have
your
make
account
in
both
wording
systems.
We
actually
then
use
the
the
voting
proxy
to
support
that
as
well.
So
now
we
have
kind
of
a
concept
for
this.
There
are
obviously
ways
we
can
improve
it.
D
For
example,
even
though
it
improves
security,
some
people
simply
want
to
use
the
same
wallet
that
they
keep
their
maker
in
for
voting,
and
we
will
extend
the
support,
so
that's
also
possible
going
forward,
and
obviously
we
want
to
kind
of
at
a
lot
of
additional
features
going
forward
based
on
the
feedback
with
from
you
notice.
There
was
this
question
at
one.
That
is
it
really
true
that
it's
only
three
hundred
and
fifty
maker
that
has
been
casts
vote
for
so
far
yeah.
That's
true.
D
I
certainly
hope
that
will
get
a
lot
more
people
out
there,
but
you
know
at
least
this
is
the
chance
for
people
that
disagree
with
the
foundation
of
principles
to
get
out
there
and
vote
against
them.
And
you
know,
if
you
don't
do
anything.
That's
also
from
my
point
of
view,
a
way
to
support
the
principles
so.
A
There's
a
lot
of
interesting
signaling
happening
right
now,
we're
learning
some
things
about
how
voters
behave
and
I
think
it's
it's
early
days
to
come
to
any
conclusions,
but
I
think
it's
interesting
to
watch
how
many
people
wait
and
see
how
many
people
do
last-minute
votes,
the
behavior
of
the
large
holders,
because
I
don't
think
we've
seen
any
large
holders
interact
with
the
system
yet
either.
Well,.
D
I
also
I
have
to
actually
say
that
there
is
a
buck
in
the
system,
so
we
should
try
to
transform
all
and
999
maker
into
the
voting
proxy.
There
actually
is
a
part
that
obviously
is
fixed,
but
if
you're
one
of
those
out
there
with
more
than
that,
you
can
simply
take
them
in
chunks
and
just
transfer
999
and
then
top
up
with
at
Eastern
Illinois
199.
Then
it
will
just
take
a
little
bit
more,
but
you
know
don't
let
that
keep
you
back.
I'm.
A
D
So
what
you
see
here
is
really
down
in
the
lower
right
corner.
There
is
what
we
call
the
chief,
which
is
the
approval
voting
system,
and
then
there
is,
is
the
polling
system
and
and
to
have
your
vote
count
you
have
to
to
lock
the
mayor
up
in
the
chief,
which
then
will
provide
IOU
tokens
that
are
being
locked
up
in
the
polling
system.
So
so
that's
it's.
It's
just
to
make
sure
that
that
you
I
don't
misrepresent
anything.
D
C
C
D
I
I
think
that
that
needs
another
solution,
because
your
your
your
body
really
needs
to
trust
you,
if
you
just
it,
just
gives
that
otherwise
we
would
not
need
to
have
some
kind
of
bookkeeping
system
for
what
wallets
you
should
transfer
that
back
to
so
so
I,
don't
think!
That's
the
way
forward.
Is
that
something
bad
on
the
roadmap
or
is
delegation.
D
Definitely
it
has
been
discussed
quite
a
while
this
just
different
ways
of
delegation.
There's
the
simple
delegation
where
people
simply
let
others
vote
on
their
behalf,
and
the
next
thing
is
actually
more
like
yeah
voting
for
somebody
through
to
make
certain
decisions
on
your
behalf
right.
So
you
know,
and
and
again
all
of
this
is
something
that
this
community
need
to
chime
in
on
and
we
need
to
to
find
out
what's
needed
and
when
to
do
it.
So
it's
it's
not
like
it's
coming
this
year,
I,
don't
foresee
that
I
think.
A
A
D
You
know
we
I
will
just
say
we
have
tasted
what
we
have
now
good
uses
and-
and
we
certainly
are
aware
that
that
there's
a
lot
of
usability
things
that
some
of
them
are
just
really
hard
to
do
something
about.
As
long
as
you
have
to
have
transactions,
let's
go
through
it,
but
you
know
even
longer
term.
Obviously
we
could
also
think
about
solutions
where
you
don't
have
to
have
each
and
everything
go
through
it
down
to
the
transaction
on
the
main
net.
So
again
lots
of
things
we
need
need
to
think
about.
D
We
also
need
to
understand
a
lot
more
about
mki
owners.
What
kind
of
Wallis
do
they
use?
Do?
They
have
other
needs
like
do
they
trade
off?
Nor
do
they
just
stick.
It
stick
all
their
maker
into
a
safe
and,
and
we
want
we
will
go
out
and
try
to
ascertain
the
formation,
the
more
systemic
manner
going
cold.
A
Right,
it's
been
I
think
well
from
my
limited
perspective
of
me
on
the
internet.
It
looks
like
it's
been
a
great
success
so
far,
so
congratulations
to
team
for
pulling
that
together,
it's
a
first
representation
of
sort
of
a
real
version:
2
app,
that's
coming
out
of
the
maker
data
ecosystem
as
well,
something
with
the
real
UI,
real
workflow,
real
explanations
and
videos
and
all
the
rest.
So
it's
very
exciting
to
see
this
thing
in
action.
B
D
A
A
D
It's
it's
certainly
on
the
roadmap
and-
and
you
know
again,
this
thing
is,
you
know
easy
to
miss.
You
know
meeting
users
where
they
are
or
try
to
move
their
mobile.
You
know
and
and
I
don't
have
the
answer,
but
it's
certainly
on
the
roadmap,
so
we
can
have
also.
There
was
somebody
on
rocket
chat
that
mentioned.
You
know
when
people
won't
know
it
would
be
really
nice
to
know
what
they
object
to
and
I
fully
agree.
So
so
that's
that
certainly
I
thought
but
again.
A
I
think
from
the
community
perspective,
I
shared
the
same
opinions
or
and
I
think
that
creating
a
venue
and
then
pushing
people
into
that
venue
has
very
mixed
success
in
might
in
my
experience,
so
we
kind
of
have
to
follow
the
crowd
on
this
one.
So
we
can
make
some
suggestions,
but
we'll
go
where
the
people
are
at
and
once
we
reach
a
certain
level
of
interaction,
then
we
can
start
thinking
about
specific
forums
for
debate.
A
I'd
like
to
turn
this
forum
into
one
of
the
top
level
locations
where
we
can
discuss
issues
read
it
obviously
is
going
to
be
secondary,
will
have
a
specific
chat,
a
channel
in
our
rocket
chat
to
discuss
governance
soon,
once
we
reach
a
volume
of
activity
and
I.
Think
that
after
that,
we'll
start
thinking
of
next
steps,
but
creating
a
forum
from
scratch,
I
think
is
I.
Have
it
having
gone
down
this
horrible
road
in
the
past?
A
C
C
That
that
was
actually
part
of
the
conversation
I
was
having
in
the
chat.
I
was
trying
to
understand
whether
so
so
the
emcee
told
me
that
I
need
it's
only
one
hot
wallet
per
one
cold
wallet.
So
if
I
was
to
be
delegated
my
friend's
maker,
the
way
he
would
do
that
currently
is
that
he
would
give
me
access
to
only
the
hot
wallet,
so
he'd
set
up
the
voting
proxy
himself.
Then
he
could.
Just
simply,
you
know,
give
me
the
feed
phrase
for
like
is
hot.
C
A
Yeah
I
think
we're
gonna
be
discovering
that
people
are
coming
up
with
some
edge
cases
that
we
didn't
consider,
because
the
opportunity
to
use
a
hot
wallet
and
trading
of
moving
around
at
the
IOU
tokens
and
then
I
think
that
opens
up
the
door
to
some
things
we
haven't
anticipated.
Yet
so
I
think
there
might
be
some
some
definitely.
A
Precisely
like
there's
an
opportunity
for
gaps
to
actually
abstract
away
the
voting
mechanism,
so
it's
it's
terrifying
and
interesting
to
see
what
people
might
come
up
with
all
right,
I
think
what
we're
down
to
one
minute.
So
that
was
perfectly
timed.
So
thanks
everybody
for
coming
to
the
call
I
think
it
was
enormously
successful,
Stephen
great
stuff
as
usual,
a
lot
to
think
about
I,
don't
think
I've
quite
figured
it
all
though
yeah
it's
more
questions
for
next
week,
thanks
Sauron
for
the
update
on
the
voting
mechanism
as
well.
I
think
that's
it
for
us.