►
From YouTube: Governance and Risk Meeting: Ep. 58
Description
# Governance
- LongForWisdom: Governance at a Glance
# Risk
- Cyrus Younesssi: Pre-Launch Governance Migration Cycle
- Vishesh Choudry: State of the Peg
# Smart Contracts
Wouter Kampmann: Governance Contracts and Security Roadmap
We'll then spend the rest of the time in a general Q&A session.
Discussion Threads: https://forum.makerdao.com/t/686
Podcast version: https://feeds.soundcloud.com/playlists/soundcloud:playlists:623643288/sounds.rss
Summaries: https://community-development.makerdao.com/governance/governance-and-risk-meetings/summaries
Transcripts (Delayed by 48 hours): https://community-development.makerdao.com/governance/governance-and-risk-meetings/transcripts
Foundation Proposal: https://community-development.makerdao.com/governance/core-principles
Governance and Risk Framework - Part 1: https://community-development.makerdao.com/governance/governance-risk-framework/part-one
Website: https://makerdao.com
Twitter: https://twitter.com/makerdao
Forum: https://forum.makerdao.com/
Chat: https://chat.makerdao.com/home
Email: info@makerdao.com
A
Well,
everyone
welcome
to
the
October
24th
edition
of
the
Scientific
governance
and
risk
me.
In
a
maker
day,
my
name
is
Richard
Brown
on
the
head
at
Community
development's,
we
have
a
few
guests
today.
Well,
services,
less
of
a
guest
and
more
of
a
fixture.
Sorry
CNSE,
head
of
risk
will
be
discussing
the
governance
migration
cycle
as
we've
been
calling
it
and
giving
us
an
insight
into
what
that
entails
later
on.
In
the
course
of
the
call
will
be
joined
by
outter
he's
our
head
of
engineering
at
maker
Dow.
A
A
Obviously,
yes,
that
should
be
apparent,
but
viewing
the
system
from
the
smart
contracts
themselves
remove
a
lot
of
the
fluff
and
they
get
right
down
to
the
nitty-gritty
of
what
it
is
that
the
tooling
that
we
have
available
to
us
and
so
hearing
from
waterin
is
going
to
be
very
useful
for
us
and
I'm
looking
forward
to
it.
Let's
do
the
preambles
and
then
we'll
get
kicked
off
immediately,
because
there's
lots
to
go
over.
A
We
are
very
interested
in
hearing
from
everybody
in
the
community,
although
our
stakeholders,
particularly
this
group
of
people
that
are
willing
to
show
up
every
week.
So
if
you
have
a
question,
please
type
it
into
the
chat.
We
will
read
it
out
for
you
if
you
don't
have
access
to
a
microphone.
If
you
do
have
access
to
a
microphone,
please
don't
feel
shy,
ask
your
questions
and
we
will
address
them
as
they
arise
all
right
with
that
Cyrus
I'm
going
to
give
up
my
speechifying
slot
for
this
week
in
anticipation
of
more
interesting
people.
B
B
A
B
All
right
so
today
we're
going
to
talk
about
the
migration
Governance
cycle
in
a
bit
more
detail.
This
is
going
to
be
a
recurring
theme
over
the
next
over
the
next
several
weeks.
We'll
probably
kind
of
just
talk
a
little
bit
about
this
in
bits
and
pieces
every
week
we're
going
to
try
to
get
kind
of
some
more
details
and
finer
points
in
the
forums
for
discussion.
B
We'll
talk
about
some
sample
risk
parameters,
I,
say
sample,
because
this
is
still
still
a
bit
of
research
going
on
and
would
also
certainly
like
to
get
some
community
feedback
on
how
we're
thinking
about
things
as
I'll
talk
about
a
little
bit
later.
The
plan
is
kind
of
put
out
a
more
formal
proposal
over
the
next
couple
weeks
and
then
yeah,
we'll
finish
off
with
a
little
bit
of
a
roadmap.
B
Okay,
so
to
review
what
we
talked
about
last
week,
we
have
primarily
two
sets
of
stakeholders:
the
current
dive
holders.
We
are
referring
to
as
Sai
and
then
the
new
MCD
will
just
be
called
I,
so
we
have
Sai
holders
and
CDP
owners.
Sai
holders
can
convert
their
sigh
in
to
die
using
a
special
migration
contract.
It's
essentially
a
special
CDP
where
what
especially
a
special
CDP,
where
you
put
your
Sai
in
and
borrow
or
draw
dye
against
it,
of
course,
no
stability
fee
there
and
then
CDP
owners
can
migrate
using
the
migration
contract.
B
As
long
as
there
is
silo
quiddity
there
and
there
will
be
a
easy
and
there'll
be
an
easy
UI
for
that
released.
The
only
caveat
is
that
you
need
some
mkr
to
pay
off
your
governance
fee
for
your
CDP
and
if
you
don't
have
any
mkr,
then
the
migration
contract
will
will
facilitate
that
purchase
for
you
from
Dex's
in
the
backend.
B
We
also
spoke
a
little
bit
about
global
settlement
last
week.
There's
no
timetable.
It's
it's
not
going
to
occur
immediately,
but
it
will
need
to
happen
eventually
for
a
variety
of
safety.
Related
reasons.
I
think
our
goal
as
the
community
is
to
just
kind
of
Shepherd
the
migration
until
we
can
safely
call
global
settlement
and
then
also
I
think
we
have
a
little
bit
of
time
to
figure
out
the
mechanics
of
this
as
well.
B
B
That
being
said,
there
are
a
few
things
we
need
to
be
careful
and
deliberate.
About
first
issue
is
the
pace
of
migration.
If
it
ends
up
being
too
slow,
it's
gonna
cause
a
number
of
number
of
issues
for
us
just
for
us
on
this
call
in
terms
of
managing
to
die
pegs
and
to
stability
fees
and
so
forth,
but
probably
also
have
negative
ramifications
for
the
general
defy
ecosystem,
so
I
think
it's
fairly
intuitive.
B
Why
we
don't
want
a
super
long,
drawn-out
migration
at
the
same
time,
if
it's
too
quick,
then
there
may
be
stability
issues.
There
may
be
engineering
issues
and
so
forth.
So
we
need
to
kind
of
think
about
what
a
sweet
spot
is
for
how
long
we
expect
or
want
it
to
take.
That's
obviously
not
easy
and
will
be
a
will,
be
monitored
over
time.
B
There's
a
lot
of
a
lot
of
questions
about.
When
do
we
know
migration
is
done
or
finished?
Obviously,
that's
also
not
something
that's
easy
to
define,
don't
think
we'll
ever
have
100
percent
or
even
90
percent
migration
right,
but
we
certainly
expect
to
see
a
huge
chunk
at
which
point
when
we
are
kind
of
comfortable
with
the
amount
of
migration
that's
occurred,
we
can
shift
from
the
migration
governance
cycle
to
more
standard
government
cycles
and
then
in
terms
of
SCD.
B
B
Okay,
so
and
then
look
in
terms
of
governance,
you
know,
obviously
this
this
first
one
is
kind
of
the
overall
mandate
of
maker
dot
right
is
we
want
to
ensure
the
stability
and
a
try,
integrity
of
well
not
just
die,
but
now
sigh
and
die
and
I
think
it's
beholden
on
us
to
promote
a
safe
migration
for
the
community.
I
already
talked
about
this
a
little
bit
timeline
right
and
then
so.
Our
our
risk
team
will
publish
a
special
migration
risk
model,
which
is
essentially
a
set
of
risk
parameters
and
and
justifications
for
strategy.
B
B
B
A
They
come
here
is
that-
and
this
is
one
of
the
things
I
sign
I've
been
wrestling
with
for
seems
like
forever
now
is
we
have
we
have
a
series
of
incentives
available
to
us?
There's
leverage,
there's
carrots
and
sticks
that
we
that
can
be
brought
to
bear,
to
encourage
or
to
slow
down
the
rate
of
the
migration,
but
we
can't
know
which
ones
are
relevant
until
the
migration
starts,
and
we
see
what
the
community's
appetite
is
to
start
moving,
so
we're
dealing
with
an
unknown
right
now.
B
A
B
Yeah,
it's
gonna,
be
it's
gonna,
be
the
Oasis,
the
Oasis
Oasis
app,
and
but
there
will
also
be
some
arbitrage
box
that
will
be
released.
That
I
think
will
kind
of
help.
I
may
be
mistaken
on
this,
but
I
think
also.
The
arbitrage
bottle
also
helped
source
liquidity
from
unis,
WAP
I
think
well,
yeah,
the
contract
I
believe
interacts
directly
with
Oasis,
but
there
should
be
kind
of
some
simple
tools
to
to
source
liquidity
from
others
as
well
using
the
arbitrage.
A
Like,
ultimately,
though,
we're
gonna
have
both
tools
available,
so
the
east
Dyer
at
the
Oasis
back
end
from
our
perspective
and
then
the
open
source,
tooling
arbitrage
bought
that
allows
anybody
in
the
community
to
attempt
to
source
the
clearly
from
you
know,
swamp
as
well.
Yes,
I,
don't
know,
but
hopefully
we
have
a
weak
timeline
for
everybody
to
try
running
it
or
encourage
everybody
to
try
running
this
price
V
and
also
hopefully
have
up
with
other
0x
exchanges.
A
Love
above
Payton
here
Swabia
to
be
really
careful
about
price
manipulation.
So
that's
why
we
did
it
with
the
order
book.
That's
been
there,
for
it
still
has
bits
and
offers
out
there,
but
I
I
I
suggest
everybody.
You
know
start
sourcing
your
m
care
on
the
court
D
for
the
bigger
CD
piece.
That's
my
recommendation
for
everybody
so
and
convert
over
our
time
over
a
slow
time.
Friend
doesn't
you
know
doesn't
have
to
be
all
at
once,
but
you
can
do
it
over
a
couple
days
and
that's
that's
all
I'm
saying.
B
B
Right
so
as
I
as
I
mentioned,
we
there
will
be
governance
poll
for
polls
regarding
the
overall
strategy.
I'm
gonna
defer
to
our
governance,
facilitator
to
kind
of
coordinate
those
kinds
of
those
kinds
of
polls
and
also
kind
of
source,
some
opinions
and
consensus
from
the
community
on
what
level
of
input
that
they
might
want
to
give
I
do
think
that
going
to
kind
of
doing
a
debating
specific
numbers,
as
opposed
to
strategy,
is
maybe.
B
B
Any
question
in
the
chat
any
conversation
with
compound
to
phase
outside
compound
posted,
a
short
blog
post
I
believe
last
week
outlining
their
strategy.
Certainly
it's
not
for
us
to
tell
them
when
to
phase
outside
and
really
there
is
no
phasing
outside
until
global
settlement
occurs.
Anyways
I
mean
that's
something
that
when
we
do
when
we
do
kind
of
discuss
or
devise
a
global
settlement
strategy,
obviously
a
key
factor
that
would
be
sufficient
lag
time
for
for
kind
of
the
whole
Tifa
ecosystem
to
compare
themselves.
B
That
model
is
still
on
track
to
come
out
in
early
November
before
launch,
and
certainly
that's
something
that
I
hope
the
community
digests
and
reviews
and
discusses.
But
it's
also
a
lot
to
go
over
and
not
something.
That's
really
doable
in
just
a
short
weeks,
given
a
the
migration
work
to
be
done.
So
my
expectation
is
that
we
can
discuss
those
models
immediately
after
launch
in
December,
as
we
gear
up
for
the
first
real
governance
cycle
to
occur
in
January
and
then
additionally,
collateral.
B
B
Not
if
we
were
to
those
are
also
kind
of
gonna
take
some
time
to
digest
and
review,
so
those
we
can
discuss
mid
to
late
December,
early
January
as
part
of
the
governance
cycle
and
I've
gotten
a
few
questions
on.
Is
this
a
problem
or
not
for
MCD
launch,
and
can
we
proceed
without
them?
And
the
answer
is
definitely
yes.
B
B
That
would
cause
a
lot
of
chaos
and
shock
to
the
system
in
terms
of
the
ability
for
SED
users
to
refinance,
and
it
would
destabilize
the
dye
pegs
and
the
resulting
monetary
policy
would
converge.
Those
spreads
anyways
so
point
being
focusing
on
monetary
policy
is
almost
certainly
the
right
course
of
action
for
the
next
few
weeks,
and
so
that's
what
we
are
going
to
do.
B
That
being
said,
we
are
planning
to
launch
with
beef,
and
then
sigh
here
is
kind
of
the
special
migration
contract.
This
isn't
anything
new,
and
this
is
a
new
information.
It
was
listed
in
the
MCD
launch
blog,
although
I'm
not
sure
if
people
really
caught
on
to
that
so
unexplained
kind
of
some
of
the
justifications.
B
B
Speaking
with
a
lot
of
independent
risk
analysts
in
the
back,
who
might
be
interested
in
this
kind
of
work,
in
fact,
the
the
qualitative
evaluation
of
that
is
being
done
by
an
independent
risk
analyst,
so
that
will
kind
of
be
a
first
foray
into
a
potential
decentralized
risk
teams
and
yeah
I've
reached
out
to
kind
of
some
of
the
professional
crypto
research
firms
as
well.
When
they've
expressed
a
lot
of
interest
in
evaluating
collaterals.
So
basically,
we
as
the
internal
risk
team
went
with
Ethan
bat.
B
A
A
In
other
words,
do
you
do
you
feel
that
the
was
was
the
poll?
Did
the
poll
basically
give
us
the
ability
to
say
the
mkr
holders
want
to
include
back
in
this
system,
or
did
the
poll
tell
us
if
we
were
to
consider
these
these
in
these
tokens?
That
should
be
the
first
on
our
list.
To
consider
is
that
does
that
make
sense.
B
That
is
certainly
untenable
for
us
at
the
internal
risking
to
manage
everything,
but
presumably,
if
or
when
independent
risk
teams
come
along,
certainly,
of
course
they
can
choose
which
ask
that
they
want
to
review,
but
if
they
want
to
do
it
from
a
perspective
of
what
do
the
em
care
holders
want
to
see
added
next
in
the
collateral
pool?
That
poll
helps
them
determine
that,
so
we
interpreted
the
priority
poll
as
given
that
we
do
these
analysis.
B
A
Right
so
I
see
this
post
from
this
question
from
long
for
wisdom
that
we
we
haven't
had
about
yes
or
no,
though
it's
a
good
point
that
we
include
it
in
MCD,
launched
and
then
later
we
decide.
So,
for
instance,
would
say
this
analyst
comes
back
with
a
negative
report,
I'm
about
just
hypothetically
I,
just
I'm,
just.
A
B
B
However,
we
want
after
the
fact
would
it
become
awkward,
is
long
for
was
dimensions
potentially,
but
I,
don't
yeah
I,
guess
that's
a
that's.
Maybe
a
that's,
maybe
is
situation
we
hadn't
explicitly
considered
and
I
think.
The
reason
is
that
our
our
philosophy
had
always
been
that
pretty
much
any
collateral
asset
can
be
included
eventually,
just
with
the
proper
risk
parameters,
obviously
safe
for
some
of
the
more
fraudulent
ones.
So
yeah
III,
don't
think
we'd
end
up
in
a
situation
where
we'd
want
to
completely
remove
the
first
collateral.
B
B
Could
we
basically
do
some
a
shortened
version
of
an
analysis,
or
could
we
speed
up
over
the
next
month
that
type
of
valuation
to
justify
that
sure?
That
being
said,
right
eath
is
in
the
same
boat.
Ethan's
never
had
that
right.
What?
If
the
community
comes
back
and
says
they
don't
want
Eve
based
on
based
on
the
report,
it
would
be
messy
either
way
right
so
totally
see
your
point
open
to
suggestions
and
recommendations
as
well.
Thank.
A
B
B
Think
I
think
the
choice
of
DSR
depends
heavily
on
what
kind
of
migration
you
want
to
target
I've
seen
a
lot
of
support
for
numbers
on
the
lower
end,
because
it's
kind
of
a
safe
and
gradual
approach,
I've
also
seen
some
analysis
for
a
little
bit
higher.
The
three
four
five
percent
range
for
incentive
alignment
with
current
SCI
holders
who
may
be
earning
earning
through
compound
or
other
secondary
platforms
for
the
stability
fees
for
eath,
certainly
something
less
than
SCD
makes
sense,
probably
in
that
similar
range
to
incentivize
to
lightly
incentivize
migration.
B
B
Think
one
consideration
we're
having
is
with
liquidity
provision
in
case
the
the
side
price
goes
bid
due
to
either
CDP
owners
migrating
manually
or
secondary
lender
secondary
platform,
borrowers
migrating
and
they
think,
as
long
as
we
just
make
sure
that
there's
enough
room
in
the
debt
ceiling
for
for
a
sed
to
if
they
needed
to,
if
market
makers
needed
to
mint
more
died
and
that's
something
to
consider
right
now,
there's
only
like
15
million
room
in
the
debt
ceiling.
If
that
were
to
grow,
then
I
think
that
would
be
a
problem
where
it
currently
stands.
B
I
think,
given
that
we'll
probably
see
an
initial
amount
of
migration
lowering
the
side,
debt
ceiling
I,
don't
really
see
that
as
an
issue,
but
certainly
one
thing
to
consider
and
then
one
other
option
is
to
gradually
lower
the
SCD
debt
ceiling.
As
the
as
the
dye
supply
migrates
to
kind
of
keep
a
lid
on
that
growing
back
again,
just
an
idea
there,
but
previously
we'd
floated
some
ideas
about
different
collateralization
ratios.
I.
B
So
one
one
idea
is
maybe
having
the
same
stability
fee
as
MC,
D,
eath
and
then
very
tiny
debt
ceiling
of
three
million,
and
this
number
is
well.
This
is
something
that
we
can
certainly
talk
about
when
some
risk
models
are
released,
but
is
roughly
a
reflection
of
the
liquidity
in
in
the
order
books
for
in
the
for
the
markets
for
bad
and
then
also
a
result
of
some
other
heuristics
or
models
that
we've
been
using
for
debt
ceiling
and
we
can
expound
upon
the
forms
as
well.
Sorry,.
A
A
B
A
Right
but
the
hell
I'm
thinking
about
it
is,
you
have
died
on
multi
collateral
die
with
no
CDP
attached
to
it
other
than
the
side
that
was
in
there.
So
someone
could
have
redeemed
that
sigh
on
the
single
collateral
die,
so
I
got
an
eval
and
then
just
taken
off
with
the
eath,
and
it's
not
in
the
system
anymore.
A
A
Basically,
so
I
would
create
a
Sai,
CDP
and
get
died,
and
then,
let's
say
someone
else
is
migrating
over
their
actual
CDP
from
single
collateral
die.
The
sign.
That's
in
the
sai
CDP
will
be
taken
out
of
that
CDP
to
pay
off
the
single
collateral
CDP
and
then
the
die
that
is
generated
from
the
new
multi
collateral
CDP.
Is
that
paid
back
to
the
Sai
CDP?
So
it'll
stay
in
a
balance
of
one
to
one,
but.
A
B
A
B
I
think
one
thing
that
were
can
maybe
I
kind
of
agree
that
is
somewhat
likely
to
happen
is
is
some
well
certainly
some
SCI
instability,
but
particularly
SCI
increased
due
to
people
paying
off
their
CDP's,
and
so
obviously
we're
going
to
need
to
remain
agile
and
nimble,
and
one
and
well
that's
not
something
that
historically,
we've
been
good
at
being
agile.
So
one
idea
is
to
increase
the
cadence
of
our
governance,
calls.
B
If
something
were
to
happen,
then,
well,
that's
certainly
an
option
that
the
community
can
come
to
consensus
on
and
deal
with
all
right.
So
here's
kind
of
the
roadmap
for
the
rest
of
the
next
few
weeks
next
week,
we'll
talk
about
some
system
parameters
and
then
just
kind
of
more
migration
talk,
gonna,
leave
the
governance
poles
for
the
community
and
rich
to
work
out.
A
All
right
thanks,
iris
I,
feel
like
we're
going
to
have
a
longer
than
usual
call
today,
so
we're
gonna
move
past
the
hour
a
week.
Water
is
going
to
join
us
today,
our
head
of
engineering,
to
give
us
some
insight
into
the
smart
contracts
end
of
the
world,
which
we've
already
seen
some
utility
from
Andy,
providing
some
clarity
for
us,
which
was
great
thanks.
Andy
no
matter
I'm
gonna
hand
it
over
to
you
if
you're
prepared
to
yes
definitely.
C
All
right,
so
there
are
two
things
that
I'll
discuss
today.
One
is
a
quick
update
on
the
security
roadmap
and
I
won't
take
too
long,
but
I
think
it
is
relevant
to
risk
and
the
other
part
is
yeah
kind
of
a
deep
dive
into
the
governance
contracts
and
how
they
are
structured.
So
to
do
the
security
part
first,
so
some
of
you
might
have
seen
that
we
published
a
blog
post
yesterday,
so
you
can
find
it
at
blog
that
maker.com.
C
It
contains
a
full
update
of
what
we
did
with
the
security
roadmap,
and
we
actually
now
have
a
permanent
website
where
we
will
collect
all
the
security
information
you
can
find
out
at
security
to
make
it
calm,
but
just
to
give
a
quick
overview.
So
the
security
efforts
that
we've
been
doing
the
first
one
I
think
we've
blogged
quite
extensively
about
is
the
formal
verification
of
the
contracts.
C
C
Next,
to
that
we
had
free,
independent
security
audits.
So
one
was
by
the
trail
of
bits.
They
have
delivered
a
report
with
with
the
findings.
If
you
read
the
blog
post
and
you
can
click
through
to
the
actual
report
and
see
all
the
issues
that
they
found,
those
were
not
to
I.
This
were
not
to
to
critical
or
to
high
severity.
C
C
Instead,
they
are
actually
building
a
high
level
model
of
the
business
logic
of
the
different
contracts
and
they
are
applying
formal
verification
methodologies
to
look
for
mistakes
in
the
business
logic
and
the
importance
of
that.
So
it
relates
to
a
limitation
of
regular
formal
verification,
and
that
limitation
is
that
formal
verification
can
typically
only
detect
mistakes
on
a
local
level.
So
it's
like
a
unit
test.
C
When
you
write
formal
verification,
specs
for
a
contract,
it
will
only
be
able
to
tell
you
if
there
are
mistakes
on
within
that
contract,
but
it
doesn't
consider
interaction
with
other
contracts,
and
so
that's
a
known
limitation
is
one
of
the
reasons
that
we
need
other
security
audits
to
make
sure
that
there
are
no
mistakes
in
the
system
and
that
actually
showed
in
the
results.
So
our
security
auditors
didn't
come
up
with
any
of
the
local
mistakes
that
are
usually
caught
by
formal
verification
and
that's
really
nice
validation
of
our
approach
there.
C
But
they
did
come
up
with
some
issues
that
are
that
are
really
due
to
interaction
between
the
contracts.
So
now
we
we
caught
it
through
the
security
audits
and
epic
granted
program,
and
our
hope
is
that,
with
the
model
that
runs
on
verification
is
building
that
we
can
actually
also
apply
formal
verification
methodologies
to
those
into
contracts.
Interactions
still
won't
be.
C
C
So
those
are
three
main
elements
of
the
security
roadmap.
We
have
also
different
additional
things
that
we
do
like.
We
have
three
weekly,
or
at
least
every
three
weeks.
We
have
a
partner
integration
call.
So
this
is
really
to
stimulate
our
integration
partners
to
start
looking
into
the
multilateral
died
and
to
start
considering
migration
integration
as
soon
as
possible,
using
our
Cove
investment
deployments,
for
example.
C
So
that
has
been
ongoing
for
some
time
and
yeah.
That's
it's
quite
important
that
we
pay
also
attention
not
only
to
the
mistakes
that
might
be
in
the
system,
but
with
the
integrations
to
the
system,
because,
if
there's
any
work,
then
the
result
is
the
same.
That
firms
can
be
lost.
I,
yeah,
different
checks,
like
a
deployment
correctness
check
and
currently
that's
still
pretty
basic,
but
we're
also
improving
in
that
one
and
one
of
the
things
that
were
still
finalizing
in
the
few
weeks
that
we
have
left
before
the
launch
is
threat
monitoring.
C
So
a
little
bit
more
into
detail
about
that
one.
But
before
I
do
this
is
one
interesting
finding
from
the
yep
from
the
security
program
that
we
discuss
in
more
detail
in
the
blog
post.
But
we
had
a
look
at
the
issues
that
we
found
and
how
much
overlap
there
actually
is
between
the
different
audits
that
we've
done.
C
So,
for
example,
the
critical
severity
bug
was
one
that
we
found
and
that
one
was
actually
identified
by
a
number
of
number
of
audits.
So
a
PAC
shield,
one
of
our
auditors
came
up
with
it.
It
was
found
through
the
by
bounty
program
and
then
also
by
a
search
warrant,
came
to
us
with
the
independence
result,
and
we
can
actually
see
the
same
thing
for
the
high
severity
bugs,
which
is
really
nice.
C
As
I
mentioned,
this
is
one
that
we're
still
working
on.
So
if
the
serenity
and
2d
system
goes
live,
we'll
be
monitoring
the
system
to
make
sure
that
all
the
you
know
the
state
variables
in
the
system
actually
maintain
or
that
they
stay
within
the
expected
boundaries
that
we
that
we
think
should
happen
if
the
system
is
running
normally.
C
So
this
list
isn't
final,
but
to
give
an
idea,
some
of
the
things
that
we
can
be
monitoring
or
the
actual
risk
parameters,
the
collateral
price
feeds
and
the
liquidity,
the
effort
price
for
dye
and
the
supply,
though
I
think
this
one
probably
will
be
added
after
launch.
If
you
do
it,
things
like
the
auction
volumes,
the
executive
votes
and
the
balances
of
the
votes
in
chief
and
then
also
the
balance
of
NTR
and
the
emergency
shutdown
module
which
I'll
go
into
more
detail
but
yeah.
C
So
that
is
something
that
we're
still
working
out
with
our
deck
up:
steams
and
attack
a
deck
up
steam
and
the
smart
contracts
team
to
make
sure
that
we
cover
as
many
of
these
vital
parameters
as
possible
by
launch
okay.
So
that's
that's
the
part
about
security.
Maybe
I
should
pause
here
and
ask
if
there
are
any
questions
about
this
part.
C
C
So
this
one
is
available
online
and
I
would
really
suggest
everyone
who
wants
to
learn
more
about
the
system
in
depth
doesn't
necessarily
have
to
be
the
knowledge
to
dive
into
the
actual
code
of
the
contracts
to
have
a
look
at
those
slides
because
there's
an
invaluable
amount
of
information
there,
but
just
to
kind
of
focus
the
mind.
So
what
we
will
be
deploying
on
Jane
is
to
start
with
the
CDP
core,
so
this
is
like
the
the
module
that
contains
all
the
balances
and
really
the
core
of
the
system.
C
It
is,
of
course,
the
collateral
contracts,
everything
that
is
necessary
for
the
different
types
of
collateral,
so
the
contracts
necessary
to
join
new
collateral
for
the
the
collateral
auction
and
then
also
everything
that's
necessary
for
the
Oracles
will
then
also
be
deploying
the
what
we
call
the
flapper
and
flopper
auctions.
So
those
are
the
MPR
dilution
and
the
buy
and
burn
auctions
for
NPR.
C
We
have
the
DSR
module,
we
have
the
emergency
shutdown
module
and
obviously
we
also
have
the
dye
and
MPR
tokens
and
then
last
but
not
least,
we
have
the
governance
modules
so
yeah.
Those
are
indicated
here,
but
also
about
tourism,
more
detail,
so
MCD
governance,
it's
it's
based
on
psycho
furnance,
what
we
dubbed
version
1.5.
So
that's
the
one
that
is
currently
online.
C
It's
with
the
same
contracts
for
the
polling
and
executive
votes
that
you're
already
familiar
with
the
modules
that
we'll
be
deploying
for
MCD.
Specifically,
are
the
emergency
shutdown
module,
something
that
we
call
the
rates
module
and
that
is
to
do
routine
governance
actions
most
notably
the
adjustment
of
the
stability
fee
and
the
dye
savings
rate.
C
Then
we
have
something
called
the
Oracle
security
module
and
we
have
a
DES
pause
module
and
a
deist
force
is
basically
a
cue
for
governance
changes
but
a
delay
so
that
we
have
some
time
to
react
if
there
is
a
malicious
governance
change
in
the
system,
so
the
way
that
they,
these
are
structured,
I've
created
this
diagram.
For
that.
C
So
if
we
first
have
a
look
at
the
the
left
side
here,
so
those
are
all
changes
that
go
through
the
executive
routing
process.
So
that's
the
process
that
you're
already
familiar
with
it,
uses
contracts
that
it
will
probably
that
you
probably
heard
about
so
the
s
chief
contract
it
uses
spells
that
we
deploy
and
these
spells
they
they
make
changes
to
the
system.
C
C
The
reason
why
we
did
is
is
that
this
module
is
incredibly
powerful.
You
can
really
change
anything
you
want
in
the
system
with
it.
We
also
designed
MCD
in
a
way
that
it's
very
modular.
So,
for
example,
if
we
add
a
new
collateral
type,
if
we
maybe
at
some
point
in
the
future,
upgrades
the
auction
contracts,
all
those
kind
of
changes
in
the
system
could
also
be
something
very
small.
Like
tweaking
governance
parameters,
all
those
changes
can
go
through
the
boot
module
and
it
really
has,
as
as
the
name
suggests,
root
access
to
the
system.
C
So
the
reason
that
would
pick
D
as
far
as
here
to
to
introduce
a
delay
is
that
we
have
time
to
scrutinize
the
changes
that
will
be
applied
to
the
system
and
if
there
is
a
problem
with
those
changes,
for
example,
if
there
is
if
there
is
a
malicious
governance
attack
and
some
change
was
voted
in,
would
that
would
jeopardize
the
system?
Then?
As
long
as
we
are
in
to
this
delay
period,
you
can
actually,
through
a
separate
vote,
cancel
the
change
or,
as
we'll
be
talking
about
soon.
C
You
can
also
go
through
the
emergency
shutdown
module
and
in
that,
during
the
delay
period,
you
can
trigger
emergency
shutdown
for
therefore
for
more
serious
threats
to
the
system
and
as
far
as
this
is
an
interesting
one,
because
it
is
kind
of
a
double-edged
sword
because
reducing
this
delay,
it
limits
the
possibilities
of
attackers.
But,
of
course,
the
system
can
not
in
itself
differentiate
between
malicious
and
benign
changes,
so,
by
definition,
are
are
intended.
C
Once
we
have,
we
are
confident
we
can
all
do
all
those
things
not
through
the
route
modules,
but
through
the
other
modules
that
I'll
be
discussing
and
then
we'll
actually
be
increasing
the
today,
and
so
in
the
long
term.
This
delay
could
be
really
large,
like,
for
example,
a
week
or
a
month
or
even
longer,
but
that
would
assume
that
the
changes
to
the
system
that
need
to
happen
quicker
with
those
would
be
done
through
different
modules.
C
So
well,
yeah,
that's
that's
a
route
module
in
diaspora,
so
this
is
kind
of
the
fallback
for
everything
you
want
to
change
in
the
system.
That
is
in
the
special
case
that
we've
provided
separate
modules
for
so
the
next
one
is
the
Wraiths
module
that
I'll
discuss.
So
this
one
is
really
to
bypass
the
TS
parts
for
routine
governance
actions.
So
why
don't
we
change
the
stability
fee
when
we
change
the
I
savings
rate?
C
You
like
it
is
between
different,
like
well-defined
bands,
that
you
can
change
the
stability
fee
and
the
same
goes
for
the
dye
savings
rate,
but
as
these
changes
are
certain
limits,
that
gives
us
actually
the
confidence
to
bypass
TS
bars
and
make
sure
that
we
have
a
pathway
here
where
we
can
apply
these
routine
changes
to
the
system
in
a
secure
way.
That
is
limited,
ended
yeah.
That
gives
us
the
possibility
to
write,
react
immediately.
C
Now
this
one
also
bypasses
the
S
pause,
and
there
is
a
very
good
reason
for
that.
It's
because
the
prices
are
obviously
updated
very
frequently,
and
if
there
is
an
attack,
then
once
again
you
can't
wait.
Wait
a
week
to
freeze
the
price
fit.
You
have
to
actually
do
it
within
one
hour
and
yeah.
So
that's
the
reason
why
we
have
this
separate
module
that
can
do
that
and
then
the
last
one.
So
this
one
is
a
little
bit
notorious.
C
This
is
the
emergency
shutdown
module
now,
first,
one
is
start
by
saying
that
you
can
trigger
it
emergency
shutdown
simply
through
the
route
module
so
that
that
route
module
can
do
anything
that
is
possible
in
the
system.
So
that
includes
emergency
shutdown.
But
if
you
go
through
the
route
module,
then
first
of
all,
you
need
go
through
a
regular
executive
vote,
which
means
that
you
have
to
surpass
the
previous
hat
once
again
as
we
are
already
used
to
and
you
have
to
go
through
the
spots.
C
So
if
this
isn't
an
option,
then
you
can
use
immersed
shutdown
module
and
this
one
allows
a
minority
of
mpr
voters
to
trigger
emergency
shutdown
in
the
system
and
the
rules
are
as
follows.
So
you
need
to
add
NPR
to
the
contract
and
you
need
to
add
enough
and
care
to
reach
a
threshold
of
50,000.
And
if
you
reach
that
threshold,
then
emergency
shutdown
will
be
immediately
triggers
bypassing
via
spas
and
there
is
a
catch.
So
all
the
MPR
that
you
deposit
in
the
contract
is
immediately
burned.
C
C
A
C
C
It
could
be
that
there
could
be
a
fork,
for
example,
if
there
is,
it
really
is
a
split
in
the
community
could
be
that
there
are
two
new
deployments,
and
you
know
one
one
fork
really
goes
with
the
majority
of
NPR
holders
who
try
to
attack
the
previous
system.
Another
part
of
the
community
goes
with
the
other.
One
could
be
that
it
was
clearly
malicious.
C
C
C
Some
important
design
characteristics
of
the
emergency
shutdown
mechanism
that
we
designed.
So
the
first
principle
is
the
dyno
race
condition,
so
every
dial
you
will
be
able
to
redeem
the
same
quantity
of
collateral,
regardless
of
when
they
interact
with
the
contract.
So
it's
it's
not
the
case
that
if
you
are
early
that
you
get
more
plentiful
than
the
next
one
or
something
every
die
hole
is
treated.
The
same
second
principle
is
GDP
parity,
so
GDP
earners
a
prioritize
and
are
allowed
to
redeem
that
excess
collateral
before
the
die
holders.
C
So
this
is
this
is
a
really
extreme
situation,
but
in
an
extreme
situation
like
that,
so
if
there
is
not
enough
collateral
basically,
then
it
would
still
be
sad
to
see.
Tpp
holders
would
be
able
to
withdraw
their
collateral
and
it
would
be
the
diode
which
is
taking
a
haircut
in
reality.
What
you
want
to
do
is
build
second
layer
solutions
that
would,
in
that
case,
yeah
make
sure
that
the
the
haircut
of
the
dye
holders
is
compensated
and
that
could
be
done
through
research,
for
example,
or
other
mechanisms.
C
Next
principle
is
immediate,
CTP
redemption,
so
after
emergency
shutdown
is
initiated,
CDP
owners
are
allowed
to
free
their
collateral
immediately
and
provided
that
they
execute
all
contract
calls
Tom
Utley.
The
next
one
is
no
offering
calculations
so
yeah.
This
is
this
is
more
technical,
so
we
we
consider
different
designs
and
and
some
of
the
designs
possible
design
for
emergency
shell
and
actually
have
quite
a
few
off
chain
calculations.
That
would
then
be
validated
in
the
system
but
which
require
services
that
can
do
these
calculations,
so
it
it
wouldn't.
C
Then
it
would
need
an
authority
that
actually
inputs
those
results
and
that's
a
design
decision
that
we
stepped
away
from
and
then
the
last
one
before
assistance
to
after
emergency
shadow
is
initiated.
The
surplus
and
the
bet
that
in
the
buffer
acts
as
a
reward
and
penalty
distributed
pro
rata
to
all
die
holders.
C
For
example,
if
ten
percent
of
the
build
system
that
is
in
the
form
of
net
surplus,
then
die
holders
receives
10
percent
more
collateral
and
in
a
sizeable
system
that
that
percentage
would
be
much
much
lower
server,
though
it
would
be
close
to
negligible.
But
these
are
the
technical
design
characteristics
of
the
emergency
shutdown
process.
C
A
A
A
All
right
thanks
water,
that's
great
insight,
I'm
sure
that
people
will
have
questions
after
they
digest
that,
so
please
bring
them
to
the
forums.
We
have
lots
of
interesting
discussions
there
and
that's
where
we
continue
these
long
tail,
chats
lots
of
data
in
this
call
and
more
data
to
come.
We
don't
want
to
miss
out
on
vishesha
state
of
the
peg,
so
let's
jump
into
that
and
see
if
we
can
get
through
that
and
the
next
50min
speciation
is
impossible.
A
A
A
The
Dex
trading
volume
with
eath
a
little
bit
higher
around
4
million
in
the
last
24
hours,
but
you
have
price-wise
overall
roughly
what
we've
been
seeing
as
far
as
the
7
days,
we've
seen
kind
of
a
little
over
two
million
daily
average,
but
you
know
14
million
for
the
last
two
weeks.
That's
pretty
in
line
with
what
we
usually
see
at
this
point,
but
the
yeah
price-wise
again
just
kind
of
sitting
slightly
above
a
dollar
as
far
as
secondary
lending
platform.
A
So,
what's
interesting
to
note
is
that
on
the
17th
there
was
the
most
recent
drop
in
this
ability
fee.
So
the
borrow
rate
for
compound
has
sat
like
pretty
much
perfectly
flat
since
roughly
around
the
11th,
but
the
dydx
for
rate
has
come
down
with
the
stability
fee,
so
that
average
is
still
sitting
with
a
pretty
decent
buffer
to
the
stability
fee.
Supply
rates
are
all
pretty
much
in
line
roughly
7.3.
Some
point,
four
percent
for
both
you
ideas
and
compound
the
for
o
volumes.
A
So
this
you
know,
frightly
explains
the
flat
rates
on
compound,
if
basically
not
moved
at
all
in
the
past
couple
weeks,
the
supply
volumes
for
and
then
for
dydx
rates
come
up
very,
very,
very
slightly
for
the
supply
volumes.
They
have
been
slightly
increasing,
but
overall,
not
a
nice
huge
movement.
So
so
that
explains
why
those
rates
are
seeing
pretty
closely
around
that
seven
to
seven
and
a
half
percent
mark.
A
So
here
again
the
the
excess
supply,
pretty
steady
and
subsequently
the
utilization
rates
since
the
10.5%
since
about
halfway
through
the
ten
point,
five
percent
stability
fee
have
actually
been
more
or
less
steady,
at
least
more
steady
than
they
have
been
over
the
past
few
months,
so
actually,
ironically,
kind
of
quiet
on
the
secondary
lending
front
as
well.
Despite
the
subsequent
drops
in
the
stability
fee,
okay,
I'll
come
back
for
questions
the
other.
Seventy
yeah
I'll
I'll
work
on
getting
that
up
live
so
the
question.
A
A
There's
been
too
much
activity
on
the
forum,
just
mostly
discussing
Cyrus's
status,
updates
on
the
roadmap
for
migration
and
a
sofa
continue.
So
a
slow
trickle
of
discussion
on
the
collateral
applications
from
various
people
and
I
still
have
to
dig
into
the
debt
ceiling
threat
which
I
promised
to
do
last
week.
But
death
can't
happen.
So
we'll
take
a
look
at
that.
Hopefully,
before
the
end
of
the
week,
yeah.
B
And
I
encourage
people
to
check
out
actually
can
someone
post
a
link
to
that
status,
update
thread
and
then
post
your
thoughts
on
that
as
a
potential
launch
collateral
type
kind
of
the
the
issues
raised
by
Alex.
There
are
things
that
have
been
raised,
also
rapport
and
certainly
conservative,
but
like
to
give
get
some
more
feedback
there
as
well.
B
Currently,
the
plan
is
to
is
to
launch
with
that
as
a
initial
launch,
collateral
and
I
think
there
are
a
number
of
a
number
of
positive
reasons
to
doing
it.
The
way
we've
outlined,
but
certainly
if
there
are
some
issues
we
can
consider
alternative
plans,
alter
different
ways
of
looking
at
a
bad
analysis.
That
is,
that
is
sufficient
for
the
community.
A
A
B
B
A
B
But
presumably
somebody
even
has
to
come
in
and
say
that
it's
not
a
scam
prior
to
launch,
so
that's
kind
of
like
it.
You
know
stopgap
solution
is:
can
we
do
a
mini
analysis
for
or
launch
or
just
kind
of
a
couple
couple
pages?
That
kind
of
puts
any
concerns
to
rest
on
that
front,
or
you
know
if
we
really
want
to
speed
up.
Potentially
you
know
three
months
worth
of
governance
in
the
next
two
weeks,
I'm
happy
to
oblige
our.