►
From YouTube: Governance and Risk | Ep. 184
Description
▼Chapters:▼
0:00 Introduction and Agenda
0:24 Agenda
0:58 Votes and Polls
2:32 MIPs Update
9:02 Forum Recap
13:40 Discussion: stETH - Market Share & Strategy
45:52 Open Discussion and Conclusion
▼Agenda:▼
https://forum.makerdao.com/t/governance-and-risk-184-thursday-march-31-17-00-utc/14314
▼Governance Round-Up:▼
Votes
MIPs
Forum
▼Discussion Topics: stETH - Market Share & Strategy▼
- What are the current market trends for stETH usage in Defi?
- What are the implications?
- What are actions that Maker should consider?
- What effect will rising ETH/stETH yields have on Stability Fees?
- How can Maker become a more attractive protocol for stETH owners?
▼Posts & Links Relevant to Discussion Topic:▼
https://forum.makerdao.com/t/informal-poll-actions-to-increase-competitiveness-of-eth-steth-collateral/14090
https://forum.makerdao.com/t/quick-comparison-of-steth-lending-markets-maker-vs-aave/14010
https://forum.makerdao.com/t/towards-taking-asset-risks-a-primer/14265
▼Disclaimer:▼
This communication is provided for information purposes only. The views and opinions expressed in this meeting are those of the people involved. They do not reflect the official policy or position of MakerDAO or any of its contributors, Core Units, or affiliates. This communication makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. This content is provided for informational purposes only and should not be relied upon as legal, business, investment, financial, or tax advice. You should consult your own advisers as to those matters. References to any digital assets and finance-related terminology are for illustrative purposes only. They do not constitute any recommendation for any action or an offer to provide investment, financial, or other advisory services.
A
Hello,
everyone
and
welcome
to
the
maker
dao
scientific
governance
and
risk
meeting
number
184
taking
place
on
thursday
march
31st
1700
utc.
My
name
is
long
for
wisdom.
I'm
one
of
the
government's
facilitators
that
make
a
dao
I'll
be
hosting
this
meeting
today,
as
usual,
we've
got
a
bit
of
an
agenda
to
get
through,
and
we've
got
a
few
updates
on
governance.
A
I
think
we've
got
some
some
sort
of
forum
and
mips
updates
as
well.
I
don't
think
we
have
any
initiative
updates
this
week,
we're
going
to
go
into
a
discussion
on
market
trends
around
stick
teeth
specifically
so
usual
reminders
for
the
call.
Well,
obviously,
this
is
being
recorded,
so
try
not
to
talk
over
each
other
too
much.
That
said,
we
sort
of
welcome
questions
and
inputs
so
feel
free
to
either
jump
into
a
quiet
section
or
raise
your
hand.
If
you
want
to
comment.
B
B
We
also
had
nine
nipples
that
finished
this
week
and
they'll
be
covered
in
the
in
the
mip
update
from
gala
in
a
minute.
Moving
on
to
the
executive
proposals,
last
week's
executive,
which
was
to
authorize
the
esm
on
dss
flash
and
add
support
for
the
new
tosd
implementation
prior
to
off-boarding
that
passed
and
executed
in
tomorrow's
exec.
We've
got
a
few
kind
of
continuity
and
things
happening.
A
C
C
So,
let's
see
the
ratification
polls,
the
results
for
that
we
had
nine
ratification
polls
that
entered
the
march
governance
cycle.
They
closed
on
monday
28,
so
they
all
passed
on
this
slide.
You
can
see
you
can
go
back
to
the
yeah
first
one,
the
declaration
of
intent
for
investing
in
short-term
bonds.
C
Then
real-world
finance
budget
passed
as
well
for
gov
alpha.
We
had
two
budgets:
a
die
budget
and
an
mkr
budget
that
includes
a
retroactive
compensation
for
long
for
wisdom,
both
of
them
passed,
and
we
had
also
two
keeper
network
onboardings
for
keeper
and
for
gelato.
Both
passed
as
well
on
the
next
slide,
we
can
see
the
amendment
to
add
a
rapid
payment
mechanism
to
the
back
mounted
program
that
passed
for
the
facilitator
of
boarding
the
maker
dao
shop.
Facilitators
have
stepped
down
on
their
own
awkward.
C
However,
the
poll
has
passed
and
it
has
been
marked
as
accepted
to
formalize
the
core
unit
of
burden
within
the
mip
framework.
And
finally,
we
had
a
mip
61,
which
is
a
recognized
delegate.
Compensation
in
this
particular
call.
The
number
of
abstains
was
a
very
high
due
to
to
the
fact
that
recognized
delegates
chose
to
abstain
next
slide,
please.
C
C
C
C
It
adds
a
description
of
the
role
that
ces
will
play
in
the
collateral
onboarding
workflow.
We
have
two
new
amen
amending
sub-proposals
one,
it's
to
amendment
40.
It
was
submitted
by
strategic
finance
and
it
revises
the
core
unit
budget
framework.
It's
eligible
to
enter
maze
a
cycle
govern
a
governance
cycle
at
the
latest.
C
C
C
C
So,
as
a
reminder,
the
upcoming
formal
submission
window
starts
on
april,
the
4th.
So
next
monday
we
will
be
reaching
out
in
the
following
days
to
authors,
to
confirm
their
formal
submission
and,
as
always,
please
reach
out
to
pablo
cevix
or
me.
If
you
have
any
questions,
so
that's
it
for
today
for
the
mips
update.
Thank
you
very
much.
A
D
Yep
just
managing
multiple
mouses,
but
welcome
everyone
to
the
forum
recap
where
we
review
the
past
week's
announcements,
discussions
and
signal
requests,
and
this
time
we'll
be
going
over
the
week
of
march
24th
to
30th,
which
was
somewhat
relatively
light
on
the
forums.
But
nonetheless
we
will
begin
over
top
announcements
and
just
okay.
D
D
D
And
finally,
collateral
engineering
services,
core
unit
posts,
some
clarity
on
the
initial
collateral
onboarding
process
as
a
whole,
speaking
on
the
process
itself,
collateral
management
and
better
recognizing
green
light
collaterals.
There's
a
bit
more
background
concerning
this,
which
is
also
available
in
the
post
for
additional
details
and
now
we're
moving
on
to
our
signal
requests.
Currently,
we
just
have
the
same
signal
request,
which
is
to
onboard
pax
g
sebastian
from
strategic
finance
core
unit
revisits
the
topic
in
attempts
to
push
pax
g
to
be
onboarded.
D
All
risk
assessments
for
it
have
been
submitted
during
2020
and
paxg
was
previously
approved
for
onboarding
through
a
governance
poll
poll.
Additionally,
both
market
cap
and
liquidity
for
pak
shi
have
significantly
increased
since
the
year
2020
and
the
uni
v2
pool,
although
small
was
recently
handling.
2
million
of
hourly
volume
and
50
million
on
daily
volume
and
proposed
parameters
for
pax
g
are
a
depth
ceiling
of
5
million,
a
liquidation
ratio
of
125
percent,
which
may
be
adjusted
a
a
stability
fee
of
4.
A
Awesome
yeah
thank
you
autumn
yeah.
It
might
have
been
a
little
bit
of
a
quiet
this
week.
It
doesn't
really
feel
like
it
always
feels
really
busy
on
the
forum
all
right.
I
think
it
does
bring
us
to
our
discussion
segments,
perhaps
a
little
earlier
than
usual.
Just
nice
change,
so
yeah
artemis
is
your
thomas
going
to
introduce
this,
or
are
we
sort
of
throwing
it
to
the
crowd.
E
Yeah,
I
can,
I
can
ensure
this
so
yeah.
We
just
wanted
to
discuss
steak
teeth
and
then
kind
of
liquid
staking
more
generally
go
over
some
like
recent
market
trends
and
then
kind
of
discuss
what
that
means
for
maker,
and
I
guess
to
set
the
stage.
Ethe
is
our
kind
of
our
core
collateral
asset,
but
the
the
expectation
is
that
over
time,
a
lot
of
that
is
going
to
move
to
staking
and
particularly
to
liquid,
staking
solutions
that
you
know.
E
Let
you
still
kind
of
transfer
it
or
use
it
in
d5,
while
you're
staked
and
steak
teeth
from
lido
is
the
first
large
scale
solution,
that's
very
liquid
and
has
a
large
supply
so
we're
beginning
to
see
lots
of
defy,
integrations
and
kind
of
the
trends
of
how
that's
being
used
and
yeah.
If
we
can
kind
of
closely
follow
the
trends
and
see,
what's
our
best
move,
I
think
that'll
that'll
set
us
up
for
success
as
we
transition
to
proof
of
stake
so
yeah.
If
we
can
go
to
the
next
slide,.
E
So
I
think
the
sort
of
how
steak
tooth
has
mostly
been
used
until
now.
It's
it's
primarily
been
sitting
in
the
curve
pool
and
then
a
few
months
ago
maker
was
the
first
lender
to
integrate
it.
So
we've
seen
a
decent
amount
of
demand.
You
know
up
to
between,
like
one
to
two
hundred
million
die
generated
from
state
teeth,.
E
These
liquidity
protocols,
like
compound
and
rari,
is
that
the
cost
of
you
know
supplying
ethan,
then
borrowing
stable
coin,
which
is
kind
of
directly
competing
with
us,
is
going
down.
So
that's
that's,
I
think,
maybe
one
of
the
most
immediate
impacts
that
we
need
to
look
out
for
and
then,
if
we
can
go
to
the
next
slide,
so
yeah
higher
ether
rates
on
lending
protocols.
E
You
know
it
offsets
borrowing
costs,
but
on
the
flip
side
it
increases
the
risk
that
you
face
of
having
some
of
your
collateral,
basically
like
decline
in
value.
If
some
of
those
staked
loans
default,
which
is
you
know,
it
seems
unlikely,
but
you
know
lido
could
face
significant
slashing
or
they
could
have
a
technical
issue.
E
E
E
So
I
think
that's
maybe
another
consideration
that
maker
will
have
to
look
to
over
time
and
then
some
ideas
for
you
know
taking
action
that
I
just
wanted
to
kind
of
throw
out
before
we
can
discuss
more
openly.
How
can
we,
you
know
kind
of
best,
take
advantage
of
this?
Staking
leverage
as
well
as
just
overall
stake
death
demand.
E
E
If
we
want
to
go
a
little
bit
heavier
on
the
risk
but
maybe
be
able
to
charge
higher
stability
fees,
we
could
integrate
one
of
those
leverage
tokens
which
is
earning
that
that
sort
of
enhanced
stake
d
field.
So
you
know,
if
you're
earning
extra
yield,
maybe
there's
more
willingness
to
pay
the
higher
rate
on
your
loan.
So
that's
an
idea,
and
then
I
think
you
know
there's
other
liquid
staking
solutions
that
are
coming
up
that
are
becoming
more
liquid
over
time.
E
So
we
have
the
opportunity
of
you
know:
exploring
integration
with
them
as
well,
and
then
another
way
that
we
can
sort
of
roll
with
the
punches
here
is,
you
know
continuing
to
lean
into
our
our
dp
ram
integrations.
They
would
benefit
a
little
bit
from
the
higher
ease
staking
or
e
supply
yield
on
these
lending
markets,
and
then
there's
also
more
differentiation.
A
E
Yeah,
the
the
thesis
is
that,
if
you're,
if
you're
earning
a
yield
on
your
collateral,
it's
sort
of
offsetting
the
cost
of
the
interest
that
you're
paying
on
your
loan.
So
if
people
on
ave
are
you
know
earning
one
or
two
percent
on
their
eth,
you
know
they
might
be
willing
in
equilibrium
to
pay
a
little
bit
higher
of
rates
on
their
stablecoin
loans.
That's
that's
the
theory.
I
suppose
that
it
would
be
beneficial
there,
so
yeah
maker
might
see
strong
demand
for
borrowing
die.
A
F
G
E
E
The
interesting
thing,
though,
is
that
they
paired
it
not
with
eath
directly
but
with
lido's
wrapped
steak.
Beef
and
the
benefit
for
them
is
that
sort
of
the
cost
of
capital
of
putting
money
in
that
pool
is
lower
because
the
entire
amount
of
it
is
earning
staking
returns,
but
it
makes
it
less
reliable
from
a
lender's
perspective
like
okay.
What,
if
the
you
know,
the
lido
staked
market
blew
out
a
little
bit
and
suddenly
there's
like
a
ten
percent
discount
rocket.
Pool's
gonna
eat
a
hundred
percent.
E
E
Seen
a
comment
in
the
chat
about
rocket
pool
having
issues
attracting
node
operators
as
well,
which,
I
think
is
you
know
they
in
a
way,
are
a
very,
very
decentralized
approach,
but
the
limitation
there
is
that
they're
kind
of
almost
limited
on
the
supply
side
like
maker,
where
they
need
to
have
people
willing
to
run
nodes
and
put
up
15
each
of
their
own
and
potentially
have
some
rpl
tokens
as
well
to
stake
on
that
and
yeah.
It's
it's
tough
to
actually
get
a
decentralized
network
of
a
bunch
of
stakers
together.
F
A
H
Yeah,
I
I
have
one:
what
are
the
odds
of
people
class,
closing
their
current
eighth
positions
to
convert
it
to
stake
it
and
borrowing
it
on
an
ave
or
I
don't
know
or
like
even
opening
a
boat
on
on
maker,
but
with
the
stay
kit.
And
if,
if
that's,
if
they're
like
it's
a
possibility,
then
what
we
could
do
to
prevent
that.
I
Yeah,
I
I
think
it's
important
to
distinguish
two
types
of
of
borrowing
against
state
thief:
one
is
borrowing
and
stable
coin
to
leverage
up
against
it
and
whether
people
do
that
at
maker
or
they
do
it
at
ave.
I
think
we
can
benefit
either
way
if
they
do
it
at
maker.
Obviously,
we've
got
a
maker
vault
if
they
want
to
lever
leverage
up
with
stables
on
ave.
I
I
E
J
Yeah
I
can.
I
can
also
say
that
you
know
half
of
our
yielding
clone
book
consists
of
institutions
such
as
nexon
celsius
and
what
they're
doing
they're
basically
refinancing
their
loan
book
right,
so
just
they're,
basically
making
a
spread
on
it
and
they
probably
feel
you
know
safer
here
than
you
know
going
to
away
because
first
they
deal
with
ads
directly
currently.
E
F
Say
this
is
a
less
risk
approach
and
a
reduced
premium
is
totally
acceptable
to
someone
expected.
So
I
I
don't
think
that
that's
going
to
be
a
huge
problem,
just
personally
from
from
my
opinion,
I
can't
really
substantiate
that
much,
but
from
a
market
perspective
it
makes
sense
to
have
a
differentiated
approach
and
from
from
what
other
is
already
doing,.
H
G
Yeah
nadia
there's,
I
think
I
mean
you're
right
there
is
that
that
risk,
but
there's
even
additional
risk,
because
the
state
component
can
get
slashed
right.
So
if
there's,
if
they're
too
heavy
in
one
client
and
it's
a
majority,
client
or
non-majority,
if
they
accidentally
have
configuration
error
on
their
side
like
they
could
instantly
just
lose
like
a
third
of
their
stack
on
like
some
of
their
machines
right.
So
this
the
slashing
is
the
I
think,
one
of
the
more
interesting
like
and
dangerous
components
that
that
adds
risk
here.
G
So
it's
not
just
a
multi-sig.
It's
it's
like
you
know
it's
it's
a
machine
that
has
like
active
keys,
running
on
it.
That
is
staking
and
could
suffer
any
number
of
software
faults
so
and
that's
not
even
to
mention
like
oracle,
pricing
risk
and
other
stuff,
which
is
which
is
all
additional
risk
compared
to
like
wrapped
bitcoin.
E
K
I
F
But
still
like
comparing
stake,
east
solutions,
a
simpler
solution
is
less
risky
than
what
habe
is
doing
well.
The
stake
east
risk
is
then
compounded
by
risk
of
lending
out
defaulting
loans
and
so
on
and
so
forth.
So
I
think
there's
just
keeping
it
simple
and
and
not
multiplying
the
risk
is
a
differentiation
towards
other
protocols.
J
Yeah,
I
I
think
currently
we're
not
as
exposed
really
with
ethereum,
because
the
dye
market
is
pretty
isolated
in
some
way.
All
the
dye
that's
borrowed
is
being
collateralized
by
by
dye
itself.
So
you
have
this.
You
know
huge
percent
of
recursive
leverage
position
and
then
the
other
part
which
is
actually
organically
you
know
being
borrowed
and
collateralized
by
by
crypto
assets.
It's
collateral
consists
mostly
of
regular
heat
and
red
bitcoin,
so
we
we
don't
really.
G
K
A
G
But
yeah
yeah
I
mean,
but
it's
at
some
point
like
we
are
on
a
proof
of
work
model.
It
works
right
now.
We're
moving
to
a
proof
of
stake
model
and
proof
of
stake
alone
is
is
its
own.
That's
like
there's
some
debates
just
between
proof
of
work,
improved
stake,
but
then
there
are
some
implications
of
this
possibly
becoming
more
delegated
proof
of
stake,
client
diversity,
and
we
should
have
an
idea
of
what
those
risks
look
like
for
the
protocol.
E
I
don't
know
we
do
have
some
leverage
like
if
we
think
that
the
development
is
not
going
in
the
right
direction,
so
yeah,
I
think
it's
worth
worth
our
time
to
like
figure
out
what
we
do
think
is
like
the
sustainable
path
for
these
sort
of
systems,
and
then
you
know
maybe
like
yeah,
try
and
align
ourselves
with
that.
Somehow.
G
That's
exactly
where
I
was
headed
with
it
is
that
we
we
do
have
a
little
bit
of
power
to
provide
liquidity,
or
you
know
like
if,
if
we
really
believe
that,
like
the
rocket
pool
left
is
the
better
there's
more
decentralized,
maybe
we
want
to
actually
like
incentivize
liquidity
for
that,
so
there
may
be
some
actions
that
the
protocol
can
take
that
help
make
the
substrate
it's
built.
On
top
of
a
little
bit
more
resilient
against
the
sort
of
failure
cases
of
proof
of
stake.
I
Well
and
for
some
context,
we
had
kind
of
these
same
discussions
around
wrapped
bitcoin
when
we
added
it
like
there
wasn't
enough
liquidity
on
the
market
and
it
didn't
seem
like
it
was
going
to
be
worth
it
to
some
people
and
then
we
added
it
and
then
the
liquidity
just
exploded.
So
like
we
need
to
be
worried
about
the
tailwagging,
the
dog
a
little
bit
with
some
of
these
analyses.
A
E
Yeah,
that
was
that
was
most
of
it,
so
yeah
other
liquid.
Staking
providers
probably
rocket
pools
the
most
notable
using
the
leverage
tokens
themselves,
which
probably
in
equilibrium,
would
have
like
a
six
or
seven
percent
yield
instead
of
sticky
having
like
four
ish
and
I
think,
rocket
pools,
maybe
just
a
tiny
bit
below
that.
E
And
I
guess
the
other
thing
is
that
we
can
have.
We
can
have
multiple
products
for
steak
diet
itself,
so
we
could
have
like
the
c
type
vault
that
has
the
high
liquidation
ratio,
but
relatively
lower
interest
rate.
We
could
have
the
b-type
fault.
That's
kind
of
the
inverse
of
that
we'd
you
know
want
to
like,
hopefully
be
sure
that
we'd
get
enough
demand
to
make
it
worth
our
while,
but
yeah
we
we
have
the
opportunity
to
kind
of
differentiate
our
products.
More
than
most
other
lending
protocols
do.
E
E
I
think
the
onboarding
the
leverage
tokens
like
sounds
nice,
but
it's
probably
not
that
great
of
an
idea.
Just
because
this
sort
of
leverage
is
it's
kind
of
pushing
lotto
further
into
the
lead,
which
you
know
may
or
may
not
be
good,
probably
on
the
leaning
towards
the
knot,
thing
not
side,
and
then
it's
creating
more
risk
of
like
okay.
If
state
death
ever
does
get
back
to
like
a
five
percent
discount.
E
F
A
A
All
right
seems
like
everyone's
happy,
so
yeah
we'll
wrap
up
the
for
this
week
and
we'll
join
you
again
next
week.
I
think
the
hope
is
we're
going
to
have
the
on
chain
collateral
management
initiative
updates
next
week.
You
know
still
is
two
weeks
now
so
hopefully,
next
week
we'll
have
that
and
we'll
be
able
to
stuff.