DeFi Protocol Governance Report | February 2022 | Week 2
Proposal: TrueUSD Market Upgrades
Created: February 4th, 2022
- 69,999 For
- 925,851 Against
What does it do: Set cTUSD collateral factor to 80.0%
- Add TUSD as a collateral asset with a collateral factor of 80%
- Distribute COMP rewards to TUSD market participants. Update COMP speed for TUSD, USDC, USDT, DAI markets
Why: TUSD activists wanted to distribute COMP rewards to TUSD market participants.
Takeaway: TUSD community could not sneak this one by.
Snapshot Proposal: Transfer Discord Ownership to Tangle [Implementation]
Created: Feb 2, 2022
- 6.6 million SUSHIPOWAH For
- 0 Against
What does it do: Transfers control of SushiSwap discord from Joeseph Delong to Tangle
Why: Joseph is no longer a part of the SuhsiSwap executive team, and thus should not control the Discord.
Takeaway: Discord control will likely be given to Tangle.
On-Chain Proposal: Recognized Delegate Compensation, Raise the Emergency Shutdown Threshold, MOMC Parameter Changes, Core Unit DAI Budget Stream Corrections
Created: Feb 4, 2022
- 82,066.18 For
What does it do:
Implements the following changes to the Maker Protocol:
– Pays out 54,752 DAI to eight of the Recognised Delegates in the Delegate Compensation Trial
– Emergency Shutdown Module threshold increased from 75k MKR to 100k MKR
– A variety of parameter changes, including Stability Fee decreases, Debt Ceiling changes, Aave D3M Target Borrow Rate reduction, and an increase in the Target Available Debt for GUNIV3DAIUSDC2-A
– Replaced the DAI budget streams for StarkNet Engineering and Strategic Finance. A DAI transfer amounting to one month of funding has been made to each Core Unit to ensure continuity of funding.
The ongoing Delegate Compensation Trial is rewarding delegates for their services.
The threshold to trigger the Emergency Shutdown Module was increased due to concerns that a single MKR holder would have enough MKR reach the threshold without assistance. The reason to increase the threshold to 100k MKR is that it is not believed that any one MKR holder has greater than this amount. However, it does pose a risk in that it makes more difficult to trigger shutodwn in the case of an emergency.
Variousn parameter changes have been made as per this proposal to make Maker Protocol more attractive for customers and to boost utilisation of a range of pools. However, assuming stable levels of utilisation, this will lead to a reduction in annualised revenue of 6.7 MM DAI.
The budget streams have been cancelled as there was an error with their setup that this change looks to remediate.
Takeaway: Discord General spring cleaning for the Maker DAO, with a few changes to make the protocol more attractive to clients and to boost utilisation as the market looks to recover from the recent dip.
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