8th AVC subcommittee meeting | Support Scope | Sovereign Finance | MakerDAO

Transcript

foreign how are you guys Welcome to our eighth

ABCs with comedy meeting we cannot believe already it's been eight weeks since we started um today as you can see we're going to discuss the support School have news that we're going to be also sharing um in the next minute thank you for being here first of all we see some familiar faces which is on new faces um and as always we we always like to start with these friendly reminders that um we have a notion with all the useful links that you need in order to

understand a little bit about the work that we're doing uh our previous calls as well so first of all welcome and thank you for being here thank you for coming and if you already know about us and and if you appreciate the word that we are doing and and you share our values please become an aligned Delegate for our Sovereign Finance ABC also in the notion you are going to find the link for our strategy document so you can all um read it let me share with you the notion go and we are thrilled to announce that

we have a new align delegate that it's with us today so welcome blue we're really actually excited about this um so all of you all the mqr token holders have the opportunity to one of countries 80. we have to do to share this amazing view oh there it is awesome okay so these are the topics that we're going to cover today um we're going to mention proposals and templates that we've been working on regarding this scope so it mentions the criteria for facilitators to support the

most valuable ABCs for governance security we have also an improvement or and like a proposal for incubation uh submission that we're going to discuss briefly um also maybe a lot of you know about what happened a week ago regarding these lawyers and these issues that have it so that they had and for this reason we also come up with a proposal in order to Pro uh on board legal console um also uh we're going to share a little bit about clocky's proposal The Forum is deed um is uh inside some of his

insights and um a couple of questions that he led on the uh maker from um so all of these welcome welcome to all of you hello it's your name so let's get into it okay so uh having said that we are going to talk about this um uh not in when it comes to for the new people that are coming here we're going to present proposals and and templates that we've been working on and of course um to all the people that are that is here we request your feedbacks and also uh your insights um and

um we're going to mention a little bit about the topic that happened last week which is uh regarding the concerns that were raised about um improving an emergency response to legal action against maker down so in light of this we are preparing a proposal to to establish a streamlined process for onboarding legal counsel in order to prevent um a situation similar that happened and of course we're going to discuss clocky's proposal and the questions that he has raised and uh also um asks all of you to comment on them and well as always everyone is invited

to to join us to participate actively in our um sub Community meetings as always so let's get into it this is the first part um so we have this first component that it's 2.1 that is based on the governance process definition let me see if do we have any any comments there welcome welcome none of you so this is the component as stated the support facilitators must balance and prioritize the resource allocated to ABC support if resource constraint the responsible facilitators must prioritize resources to focus on

providing support to the ABCs that are most valuable to governance security governance security value is primarily determined by the size of the ABC but also by the focus of the ABC this means that smaller ABCs that introduce significant diversification benefits and increased voter Choice must be prioritized above their size so according to these uh um with what is stated in here we are adding um because basically what it's saying in here is that um when the number of active ABCs exceeds five

um the support facilitators are required to share a message on Linker forum and this message me this message should provide um of course comprehensive overview of the Criterium um employee of course for pretty Tyson resource allocation among ABCs and by doing so of course transparency and Clarity are in short of course allowing the community to understand the factors considered in the allocation process so uh what we're adding is the size of the ABC is determined by the verified MTR holding of its members for the five largest active ABC's resources

should be allocated equally however if there are more than five active ABCs starting from the sixth one the resource allocation criteria should consider the focus on the ABC as is stated in component 2.11 okay um and we are adding as well 2.1.1.2 quarterly when there are more than five active ABCs the support facilitator must post a message on the maker Forum where they detail the criteria used to prioritize ABC's resource allocation um just to make it clear this is

um our template that we are um that is based on the document that it that we're going to share with you um so of course the format it's you can read it better in the document um but this is just for the presentation just in case so uh all of these we're going to this is public and you can command you can give us feedback onto this the reason why we're adding these two components is because um we understand that um super facilitators should have some flexibility and deciding how to allocate resources based on a specific criteria um however we also recognize that this

discretion um could potentially lead to a situation where um Power becomes concentrated in just a few and selected ABCs so in order to address this concern we propose that um the five biggest ABCs should receive a minimum level of equal treatment when it comes to Resource allocation uh what we're doing this well this uh we believe that these ensures fairness and helps prevent anyone any ABC from dominating the location process let me see if we have um

okay there's some people riding on the chat okay so that is uh the first um component that is regarding Covenant process definition and now let's move on to the incubation proposal submission process um so the the Meep 106 the component 7.3.1 States ecosystem actors can apply to become incubating ecosystem actors by submitting a proposal to be processed by the support scope to submit an incubation proposal the ecosystem actor must make a post on the maker Forum

following the template provide in 7.3.1.1 T and comply with all requirements described in this section okay um The Proposal leads to qualify as an ecosystem actor the applicant must publicly post a recognition submission message on the maker governance Forum that submission message must be cryptographically signed this is also following um previous template that we have also a done and I have seen from different formats um so

the template that we are proposing follows the guidelines that is established in components 7.3.1.2 7.3 0.1.3 and 7.3.1.4 what does it says in here uh the the applicant must clearly outline their cause be very very specific when it comes to their calls uh both direct and under expenses um demonstrate how their work contributes to the maker ecosystem specifically in relation to the incubation adjectives provide all information about their team's size composition of skills and any dependencies on third parties

and the applicant must uh present a well-defined timeline with a specific milestones in kpis and key performance indicators for evaluating progress at each Milestone um to determine the ongoing funding requirements the mod is a reason why we believe that this should be the the template um well the support facilitators must ensure that potential ecosystem actors can initiate their incubation proposal submission process through an open process that it's public with clear instructions and that it's providing in a template all relevant information again this this template with

um the questions on the information that we are requiring that we are asking uh to fulfill is also public and we can share it with with you okay moving on to with the next part um I was talking a few minutes ago when at least the beginning of the um of the call about the problem that happened and when it comes to the legal

terms I am going to share the post just in case um you know what we are going to discuss in in this next um proposal so just okay so this is the post it was um 12 days ago and it's that resolution for the purposes of retaining Perkins coil LLP as console oh well so this pose in in all the information that they provide in here it's about um um our resolution for maker Dao um regarding now allows it feel against them by

um by true return systems which is this one um and uh the lawsuit claims that um the maker dial violated a patent up attend and is um sticking damages of more than 17 million dollars and um they mentioned that the court has ordered makered out to hire a lawyer or they could face um negative consequences like uh like like a default judgment and to comply with the order Mikado is proposing to hire um Perkins which is also here this uh Perkins

called LLP as their legal council uh specifically for this lawsuits um and they are also appointing uh summer law as the representative who will make decisions and provide instructions to Perkins koi LLP um of course on behalf of makerdale and for this lawsuit um and this resolution aims to address their legal needs and ensure a proper defense against the lawsuit so all of these these um concerns that we have seen in uh the past few days regarding this topic

um well we come up with this and if we put into the context that of course on the Meep in w106 um in section 10 when it comes to um the residence funds it's uh there are templates there are budgets and uh a lawyer registry their requirements and criteria for asking uh or um new lawyers there is a missing information that we find that about all these problems that just happened it's it's relevant and it should be so we are proposing uh emergency defense request

that it defines the process for swiftly a probing and funding legal defense in response to legal or or regulatory action against maker Dao it applies when time sensitive action is required due to supinance and standard processes 10.3 and 10.4 cannot be complied with um while we we find this as important and that's why we call it emergency it's because sometimes they um they want a specific information documents as fast as they can uh that's why um origin we qualificate is this as urgent uh that's why

um emergency document um so the key elements are that any participant of maker governance can submit an emergency defense request proposal in the maker Forum following on uh standardized template and the request should explain why the normal procedure is not visible and provide a provisional budget for the for the manual the emergency response the provoke process um AOL the support facilitators um carefully of course review the emergency defense request and upon approval the the situation is

deemed urgent um according to MIP 24 and a governance poll is promptly initiated so if the governance poll receive sufficient support then an executive vote is then uh it's it's generated to access funds from the um the Surplus buffer um and well these funds are subsequently transferred to the wallet of The Proposal submitter and well the motives of the reason why we believe this um this should be also uh a component is that um well

um this is in order to everything that happened you know the the development of this proposal um stems from the concerns uh within the maker ecosystem regarding the handling of emergency responses to legal action so um the objective of of this new process is to streamline the onboarding of legal counsel and as I said before in urgent situations and this while also minimizing um the likelihood or similar incidents occurring in the in the future we want

to avoid these these situations oh there are some questions on the chat um foreign let me go through them welcome welcome thank you for commenting thank you for your feedback thank you for the questions as well um penguin Soldier says I'm looking to follow as well Chris speaks well and the ABC support seems great been trying to participate in the various existing ABC lately that is awesome news you're very welcome so we would like to have you

here um and yes as Anon Builder asks are you going to apply to be an ad please do creatively um cryptographically signed yes um you know it's a it's a signature as oh well there is another it's a signature that can be done through etherscan to verify address ownership yes um England Thunder says it's still trying to figure out the areas and how he can contribute awesome well actually you are in perfect um place because uh you're going to listen to We have actually a lot of

questions uh about the templates and proposals and how we are understanding also the the scope so thank you for being here and moving on this uh we have arrived into clock clock is proposal um and so we are going to um oh before start talking about the proposals per se um we understand that there have been um let's say challenges in in understanding clucky that is also here thank you coki for being here and that's why we are working on updating our code of conduct to address this this issue

um our goal is to um to improve Clarity and simplicity in our Communications uh this of course in order to to ensure um better understanding for everyone involved um so having said that we have here clock is proposal that is post on the maker Forum um and also the the questions that he post um I we put it uh we didn't change a theme when it comes to the questions I am going to share with you the post foreign

okay so you can also take a look because what we want actually it's for you to share your thoughts your Insight feedback on the the questions that he has proposed so very brief briefly let me read um what um that a caucus insights and of course if we misunderstand anything please let us know Clocky um so uh in in the post he basically said that most ABCs Outsource the scope Improvement to advice reconcile members um refine hearts on initial a uh 18 member for each scope to identify Improvement areas and Define the hiring process for additional AC members

um Keys ABC offers immediate bounties to successful AC applicants with their own Improvement ideas um a couple of ABC's proposed terms for AC members retainers were commitments um two ABC suggests electing multiple AC members once a year um composable AVC and Grove ADC they for them 12 months the the term for us it's 18 months and other ABCs haven't specified yet um or when it comes to the duration of start asking for certain type of information

and when it comes to the application process um the branches are from 30 days to 30 to 60 days overlapping questions across ABCs compostable ABC and refi ABC prototypes hiring members with makerdale experience Keys ABC seeks at least one external member a kiss and resilience ABC's proposed re-pumping deployment review of executive votes and addressing conflicts of interest residency ABC also suggests reviewing alignment conservative power

additional changes peer-to-peer recruitment with bounties for successful referrals um uh with Sovereign Finance ABC proposed expanded conflict of interest definition and scope transcription refinement regarding for further discussion so this was just like a very brief of um clock is post on the Forum and these are the the questions I am going to read it um this is the perfect time if any of you don't understand one of clocky's questions to ask and so he can also provide us further information and clarification into this so

um let's um let's read them record the areas of scope Improvement should come from African applicants themselves from initially higher council members tasks with coming up with areas of scope improvements or from ABCs should we be paying bounties to them successful applicants who come up with their own errors of scope Improvement should them council members have their term limits or does the old one year in activity class cover all our bases should we hire on retainers or should they hire him for a specific advisory work maybe even proposed by the

applicants themselves should emerging emergency availability be a requirement Recon there should be a common election season should we try to hire a whole mess of council members per call per Council right away how long should the application process be should we try to harden faults with maker.experience them Outsiders who are new to the maker dot family a mix of both or just leave it wide open we have already um respond we have already answered with uh our insights into these questions about clucky's proposal and we also uh want you to do the same so please

um read um the questions read also the whole post if there is anything that you can understand also um you know ask us as clucky and what we'd want is participation we really think that most people should comment on this kind of um discussion so that's why and we have there blue says how does the 18 months higher of AC members comply with maker pursuing the project-based funding um oh perfect this question was raised on the key is called only hours ago okay perfect yes uh also apart from this we also um have a document that I think a few minutes a few hours like an hour ago

as well a park share with us um so we are going to review that information as well because he's asking a feedback so I'm just going to share with you this is Parts document they are actually pretty glad that uh our delegates are participating a lot thank you so much and um as soon as we have our feedback we're going to share it with you pal thank you so much on to the next part just let me confirm

okay yes uh our we have a surprise you know this is a one last minute thing but we love we love surprises um so we have a guest um and in order to tell you more about our guest that is Parliament maker and he is from um solid solid Labs that it's the brand new ecosystem actor actually uh just a few days ago I think one or two days ago they posted um their introduction in the Forum um which I am also going to share right

away all of you to see it so uh welcome pyramid maker thank you so much for your time thank you for being here um is here to tell us a little bit about the role of ecosystem actors so this is the perfect time to ask questions regarding this topic um so we read the post on the Forum and basically um solidly Labs uh they offer services such as open source of software development in um solidity and Cairo um data science and risk analytics um real world asset talking design and

engineering and AI automation consultant um the team consists of individuals with expertise in smart contract development and data science engineering L2 strategy product management um they have contributed to projects such as building ethereum star net Bridges um and and more and I'm pretty sure that he can tell us more than that um and what they'd mentioned is that solidity Labs is particularly excited about contributing to the endgame Vision by focusing on liquidity solutions for

real Gore assets and expanding the usage of dye um so thank you so much for for being here if you could give us uh I already can gonna like give a brief presentation according to what uh your post on the Forum but if you could tell us a little bit about yourself and then a little bit about the work that you've been doing awesome thanks thank you so much Chris I mean you covered a lot of it so um I I was part of the the stock net core unit before the before the end game and uh Marcel is uh was working on rebuilding Ave on starknet

and so our combined experience is a smart contract development myself I worked uh Europe on multiple real world asset token design a message worked on the technical implementation of it and we both have a background in data science and message specifically has been doing a lot of prompt engineering since open AI has been out we are both wearing managers Mercedes more Hands-On than me and maybe that's what would be helpful for this audience is we're trying to navigate how we can best contribute so in the next couple of days we're gonna

put a design out on how to replicate how to see the amms while being Capital efficient so very similar to the G uni experiments but that would also work with volatile tokens it's frankly where we want to put ourselves out there and understand where we can contribute the most and we need's help and if I'm being very honest I'm gonna share this with this group I'm I'm still a little lost in exactly what are my next steps to to to discuss with the teams that that need help on discussing with them the specs to see if we are a good fit if we are not how we can help them connect with the right people so I'm still trying to navigate down I

would really appreciate um any help there but also happy to answer any questions yeah we're all in the same path so it's actually good to know um we do we do have a couple of questions and anyone in the audience as well if you have any questions related to um to this topic please write them on the chat and we will be uh we will ask to our guests um the first question that we have is uh regarding the star net core unit um could you provide an update of the current progress of makers projects and the development of Layer Two no absolutely so on stock net

specifically we so we officially closed the core unit but we have one person we're still doing some some maintenance uh we have built the bridge and the fast withdrawal and I would say we were UH 60 into teleport and really rebuilding all of maker onto starknet so that code base is there we've had those some obvious pushback on the L2 strategy from governance and including including roon the L2 strategy was has been basically posed and so being posed on having a lack of visibility I'm not having much work to

do we decided to wind the car unit for now that's where we are we are finishing off the migration of the Cairo code base into Cairo One and so that requires a new audit this audit will happen in the next three to four months after that we will be done with the with the Bridge Walk and we would be waiting to hear if we need to continue the work on stock net or not but maker is not spending um not spend spending money on the team walking on this activity basically the code is here there will be some expenses related to audit but that is really it

okay um the next question sorry oh yeah go on I know that there is a there is a 2.2 million budget for two but there is no Clarity on on what is happening there you know everybody in the team is a bit like wanting to build on with we didn't want to sit for too long so people are moving on and if we have to rebuild the team to work on stock net because governance decided to then we will do it okay we're going to be very um attentive uh onto this kind of

information to all the up updates um now then the next question it says um and then introduces this in uh this incense tips for the use of real world assets concerning the initiative to bring liquidity to real world assets um how do you think this will impact the final stage especially considering that the scalability issue of reward asset is not directly linked to liquidity so we but specifically because we talked to uh the number four the the Veridian former virgin cluster I don't so that's one thing I'm a little bit

confused with Varian cluster still exists within the subda or not but um basically we understand that that challenge is the the ability to ability to basically tokenize and then sell on a market that's permission the the tokens if need be because that's what I understand now is that doesn't have multiple volts with multiple assets is that is called or an allocated order has one volt there is a pecking order in terms of what is liquidated first it's going to be the assets then it's going to be the tokens

um and so sorry first it's going to be the tokens then it's going to be the assets if possible and if not then the assets are seized and I understand that they are looking to find a solution to be able to have a liquid market for those assets the next question I need to share my screen um so it's about the post uh okay so this for this to happen we develop smart contract infrastructure to enable allocator dials to make positive return

on providing liquidity to die stable and die if amms uh could you please explain what it's meant by this of course so we're gonna that's what we're doing the last back test today we're going to post something in the next couple of days on on this but so today when we are providing liquidity to an amm the naive way is to take dive from the Surplus buffer and put uh die into an amm but it's very Capital inefficient because we're limited by by the size of the of the Surplus buffer radio instead if is to mince die in on in one Atomic transaction to take the liquidity token of the the lp token of

the the amm in collateral so it's manipulation and we don't we don't have to spend our Surplus buffer basically there's been uh one experiment that was successful on this on uh die usdc on one much less successful on die busd so we would like to revive this design to ensure that it's easy to exchange die against any assets first on L1 then later on L2 and also not just be able to do that on stable coins and that's kind of the The Innovation here is that we will show you the back test we think we can do that it's worth having an allocator now taking the risk of doing this on a die

if basically does that answer the question yeah there are also people that are are typing but I don't know so um yeah there is one more um European how can codify assets improve their real world assets the structure reading maker down did you hear me it's the could you hear

the question Chris I didn't hear that could you repeat oh sure yes um how can codify assets improve the um the real world asset structure within the maker dial like in your opinion of course clarify assets well I don't know if you uh any of here it's familiar with the codified asset it was a question oh came to we are really concerned to to know

um let me write it also on the chat because I don't think the the screen is moving anymore for me so I don't think I'm seeing the right thing oh yeah I'm not actually sharing the question but let me put it in the chat foreign

just in case so you can also read it so in your opinion how can codified assets improve the real world asset structure with maker dial sorry I didn't catch that so codify as far as I understand is a specific tokenization solution right from it's a vendor correct yes yeah so I mean it's something that I've been uh keeping track uh myself and tokenization some some as a technology provider with a partnership

with the broker some some as a full stack solution um I really have a solid comparison on having a rational as to why they would be better than others one would have to spend to really compare compare apples to apples so it's a little bit hard for me to to to comment on that one and it also depends where you are if you're doing that in the US so in the European Union okay the location then well we're not we're not uh most like some people are but uh some other we're not from the US but uh

it's okay very quickly and if it does not exist it definitely was doing a kind of a split and solid-like uh between the like the secret eyes of the world the centrifuge of the world the codify uh like a lot of companies are coming up with their own uh like the words um sorry I forgot the name there is a big one in the US that that just launched and now did a few deals in in Europe so but there is probably a dozen and it's definitely worth comparing them on and

are considering using them I don't know if there's if there is any more questions regarding these um I think a lot of people are also um discussing our proposal which is also pretty nice says codify is a consensus funded Co yeah like if there is anyone that could share a little bit uh like a link or something that we could look for more information into this it's also very

helpful and if there is no further questions about these thank you so much for coming and answering this I don't know if there is anything else that you would like to to add maybe a little bit I would really appreciate like a few one-on-ones to to to because you know I was focused uh basically getting a team together on thinking about what I wanted to do in life on that frankly I tuned out a little bit of governance and I came back a month later and everything changed so I'm trying to I'm trying to basically understand what's my process going forward is to to Really connect with the the teams that needs Builder to help them

don't worry yes well that's actually what everyone wants and it's actually the way that we think uh our work is improved by um feedbacks by inside so um thank you for sharing that also uh as well um and uh just to point out that um we're going to share our document which is the alliance code proposals with everything that we have mentioned here um the components that we have added the templates um with the format that we think it should um be the best option to add it and

um and of course as a as we said before we appreciate and value feedback from 80s from maker governance participants for every ecosystem actor because your input is highly encouraged and welcome so um um don't forget next week we're going to have uh we're gonna talk about the protocol scope and we are also already working on some um proposals to improve this um and if you appreciate our work and share our values we invite you to

consider becoming an ad of our certain Finance ABC um actually about this um l let me share with you um we have do we uh I don't know if you have seen the jack um he also wants to work with Sofi who wants to be involved so um that is also awesome news and um and anyone as well that it's interesting

in join us in our work please um foreign we appreciate if you could also um have some of your MPR holder MPR tokens to your to one of our 80s so um that's all for today I'm going to read a couple of the comments on the chat um yes once again thank you so much to Our Guest Paramount maker because uh I think we are everyone is in the process of learning to all these changes that it's uh it's constantly reading it's

constantly updating sometimes we have to uh keep learning and and yeah we're in the same path as I as I mentioned before um thank you Maria Marianne has shared the public document you can uh take a look and please again we ask you to um your comments on on this so please enter to the link there is uh of course it's just a draft we are going to continue to work in these documents also for our the next um proposals uh what we don't want is like to change documents and then kind of lose information so we're going to

work in the same one uh header which is also a member of the ABC says thank you very much for coming as well as you we're learning on the new process of end game I believe in one wanted to be the best way to engage with possible Partners delegates in communities through the Forum yes uh we are that's why we we ask questions um we don't know why sometimes we that we are not uh um they're not answered probably because they are also learning but yes uh we also believe that the best way is to ask directly on the Forum um

so again uh there is okay it's amazing that you're already discussing in the chat about the period of time um uh a number says why would that be an issue 18 months of advice reward can be considered as a project so yes that is actually something that we are um working on that what is the best period of time um but if there is no further questions again thank you so much and that will be all for today I'll see you next week the same time um um same day as well same Thursday at this time we are going to talk about the

protocol scope once again thank you so much to Our Guest thank you so much all for you for staying until now and that's all bye bye everyone thank you thank you