Poll: SparkLend Ethereum - Upgrade DAI, USDC, and USDT Interest Rate Models - January 15, 2024

The Governance Facilitators have placed a Governance Poll into the voting system on behalf of Spark Protocol and the Stability Facilitators. This Governance Poll will be active for three days beginning on Monday, January 15 at 16:00 UTC.

This is a binary vote.

• You may vote for a single option.
• You should vote for the option which you prefer.
• If you would accept either option, you should vote ‘Abstain’.

Review

The DAI market Interest Rate Model (IRM) has accumulated some technical debt with features that were originally expected to be used, but no longer necessary. Furthermore, USDC/USDT IRMs are currently hardcoded with an assumption that the Dai Savings Rate (DSR) is 5%, which can result in a suboptimal borrow rate. Phoenix Labs suggests updating these IRMs to more suitable versions that address these issues by reducing the DAI market IRM to the most simple form which tracks the DSR + a hardcoded spread and updating USDC/USDT IRMs to read the DSR directly and adjusting the kink automatically to optimize borrow. The community can vote in this poll to express support or opposition to the following changes:

• Upgrade DAI, USDC, and USDT IRMs.

Please review the discussion thread to help inform your position before voting.

Outcomes

If the votes for the ‘Yes’ option exceed the votes for the ‘No’ option then the following actions will be taken:

• Phoenix Labs will prepare a Spark spell upgrading the DAI, USDC, and USDT IRMs on Ethereum.
• An upcoming Executive Vote will include a proposal to execute the Spark spell.
• It is expected that this Executive Vote will take place within 30 days of this poll passing, absent external factors.
• If the Executive Vote passes, then these changes will become active in the Maker Protocol after the GSM Pause Delay has expired.

If the votes for the ‘No’ option equal or exceed the votes for the ‘Yes’ option then no further action will be taken at this time.

,

Resources

The code changes for the Spark Protocol are available in their GitHub repository at marsfoundation/sparklend-advanced

If you are new to voting in the Maker Protocol, please see the voting guide to learn how voting works.

Additional information about the Governance process can be found in the Maker Operational Manual.

To add current and upcoming votes to your calendar, please see the MakerDAO Governance Calendar.